Starbucks, in Keeping up with the Joneses, Adds Breakfast to its Menu

In a bid to increase its competitive edge, Starbucks is the latest in a string of QSRs to add breakfast items to its menus.

The Seattle-based coffee chain is rolling out five new warm sandwiches to ramp up its breakfast offerings alongside its infamous coffee. The egg sandwiches, now available in 450 Starbucks stores in Seattle, Portland, San Francisco, Washington, DC and Chicago, are toasted on English muffins or bagels and are served all day.

“We had a lot of customers wanting hot breakfast options when they come into a Starbucks,” said Kelly Mattran, regional marketing manager for the Midwest region of Starbucks. “People are interested in a warm breakfast. We’re thrilled we can address their needs.”

The new items, which are priced at $2.95 in the Chicago market, include Peppered Bacon, Egg & Cheddar, Sausage, Egg & Cheddar Sausage, Reduced-Fat Turkey Bacon, Cholesterol-Free Egg & Reduced Fat White Cheddar, Eggs Florentine with Baby Spinach and Havarti and Black Forest Ham, Egg & Cheddar. The breakfast line comes on top of Starbucks bakery offerings (think scones, cookies, pound cake and croissants).

The breakfast sandwiches are part of Starbucks’ response to customer demand, not a move to keep up with competitors like McDonald’s, Mattran said.

“Coffee and food go together,” she said. “Customers were looking for a truer breakfast type item, that’s why we decided to get into this area. We’re more focused on what our customers want from us.”

Chicago-area Starbucks stores (126 in all), which launched the product last week, are sampling the breakfast sandwiches throughout the week to drive awareness. P.r. and in-store signage also support. The rollout is ongoing.

Breakfast isn’t the only food Starbucks’ is warming up. The chain is also offering to heat other Starbucks treats, including bagels, croissants and cookies, at no charge. Starbucks is also out with two additional lunch options in the Chicago market—a Turkey Pepper Jack Sandwich and a Tomato Mozzarella Sandwich made with basil and spinach. The sandwiches can be eaten cold or warm.

Breakfast foods appear to be a growing trend within the QSR industry. Canton-based rival Dunkin’ Donuts launched a Supreme Omelet Sandwich this year. Likewise, in April Burger King rolled out a French Toast Sandwich and Cheesy Tots as new breakfast items. And in select restaurants in the Northeast, McDonald’s is testing three flavors of iced coffee and new bakery items (Xtra, May 25, 2006).

Wendy’s is also vying for a piece of the market share. The QSR plans to offer a full breakfast menu in 2007.