POPSUGAR Celebrity

Starbucks Has a New Strategy: Sell in Subway Shops

Dec 15 2008 - 3:00pm

Hoping to put an end to hemorrhaging sales, Starbucks is moving full speed ahead with a new strategy. In addition to cutting workers' hours and streamlining recipes, the nation's largest coffee [1] chain will be entering a partnership [2] with the country's biggest sandwich franchise, Subway. Next month, select Subways will start selling Starbucks-owned Seattle's Best Coffee [3]. In the six-month test launch [4], approximately 1,900 Subway sandwich shops will carry coffee blends, including the Seattle's Best Blend, Henry's Blend, and the 6th Avenue Bistro Blend. Subway has long wanted to tap into the morning market: earlier this year, Subway announced it would be rolling out a new line of caf├ęs [5].

Still, I was taken aback to learn that it wouldn't be creating its own label. I'm also surprised to hear that, after closing 600 stores in 2008 [6], Starbucks is expanding its coffee business yet again. Do you think it's a wise move? Would you hit up a Subway to get coffee?

Source [7] and Source [8]

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