Introduction:Starbucks recently announced the removal of the Italian high-end bakery brand Princi from its eight Reserve Roasteries in the United States and China, ending a multi-year partnership. This strategic shift not only marks a major turning point in Starbucks’ global plan to integrate premium food services, but also triggers deeper reflection on the brand’s positioning and future direction. This article will outline the history of the Starbucks–Princi collaboration, analyze the reasons behind this decision, and explore the brand’s potential future trajectory.

In a recent internal memo, Starbucks stated that it will gradually remove products from the Italian bakery brand Princi — including its signature baked breads and pastries — from its eight Reserve Roasteries in the U.S. and China. Although no specific timeline has been announced, it is confirmed that the Princi brand name and related logos will be completely removed from the menus of these stores.

Notably, some popular items supplied by Princi, such as ciabatta sandwiches and egg tarts, will temporarily remain on the menu but will no longer be branded as Princi. This detail shows that while adjusting its brand strategy, Starbucks is still attempting to maintain a certain level of product continuity.

The Starbucks–Princi partnership originated in 2016, when Starbucks announced its investment in Princi, headquartered in Milan. The brand was founded in 1986 by baker Rocco Princi and specializes in high-end Italian baking and coffee. In the early stages of the partnership, Starbucks acquired the global franchise rights to Princi and introduced its baked goods into its own high-end Reserve stores and Reserve Roasteries, with the goal of creating a “third place” experience that blends coffee, light meals, and artisanal Italian baking.

To further advance this strategy, Starbucks opened its first standalone Princi bakery in Seattle, USA, in 2018. The store offers differentiated meals according to different times of day: breakfast features croissants, egg dishes, and oatmeal; lunch includes sandwiches, pizzas, and salads; and a variety of desserts such as Italian fruit tarts are available all day. This full-day operating model aims to attract consumers with diverse needs and enhance the store’s operational flexibility.

It is understood that all baked goods at Princi are handmade on-site and baked fresh to ensure freshness and flavor. Prices range between $3 and $10, targeting the mid-to-high-end consumer market. However, this premium positioning and operational model have faced severe challenges amid the impact of the pandemic and changes in local policies.

Starting in 2020, multiple Princi physical locations around the world were gradually closed, including the New York store in March 2020, and the Chicago and Seattle stores in September 2021. At the time, Starbucks stated that although the physical stores would cease operations, Princi baked goods — including bread, pastries, pizza, and sandwiches — would continue to be offered at Reserve Roasteries in major global cities.

But now, with Starbucks’ decision to completely remove the Princi brand from its eight Reserve Roasteries, it not only signifies the setback of its previously planned expansion of over 20 high-end Roasteries globally, but also indicates that the brand’s premiumization strategy — driven by founder Howard Schultz — and its push to expand its food product line are facing challenges.

On September 10, Starbucks’ new Board Chair and CEO Brian Niccol emphasized in his first public letter after taking office that he would lead the brand back to its roots and refocus on its core identity as a “community coffeehouse.” It is understood that the decision to phase out the Princi brand was actually made before Brian Niccol officially assumed the role of CEO on September 9, indicating that this move is part of the company’s long-term strategic adjustment.

Industry analysis points out that this move may be related to the sales pressure Starbucks has recently faced. According to public financial reports, Starbucks’ total revenue for the second quarter of 2024 was $9.1 billion (approximately NT$658.7 billion), a 1% decline compared to the same period last year. Although the number of global stores reached 39,477, with 526 new stores added this quarter, the rate of new openings slowed down by 62 compared to the same period last year.

Although the specific reasons for this brand adjustment are not detailed in internal documents, it is clear that Starbucks is undergoing structural adjustments to respond to market changes and consumption trends. Whether there will be new food service partnerships or further streamlining of the product line in the future is worth continued attention.

The above content is compiled by CoffeeHunters, a coffee news website.