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Would You Pay $10 For A Cup Of Coffee? Starbucks Thinks You Will

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Over the years, customers have watched Starbucks (SBUX - Free Report) transform from a standard corner coffee chain to a sprawling multinational empire with a diverse range of concept stores. Loyal drinkers can now head to Starbucks for everything from a cup of black coffee to a glass of wine and a sandwich.

Starbucks recently announced that it is doubling down on some of its more upscale store experiences. For one, the company will be expanding its “Roastery” concept, which debuted as a larger store in the company’s hometown of Seattle that offers small batches of premium drinks in a tasting-room-style atmosphere.

Starbucks said that it plans to open 20 to 30 Roasteries around the world, with Shanghai and New York options coming first.

The company also revealed plans to transform its “Reserve” brand of premium coffees into a new café concept. The Reserve shops will be about twice as large as a standard Starbucks store and will offer pricier caffeinated beverages—as high as $10 a cup for certain coffee drink—and alcoholic drinks.

One of the running jokes that surrounds Starbucks is the idea that a crazed coffee drinker can easily drop $6 to $7 on a single beverage by upgrading everything. Most people spend less than that when they head in for their daily cup, but it’s not out of the realm of possibility.

Starbucks isn’t joking around here though. These $10 beverages are meant to be more than just a drink; they’re meant to be an experience. These new concept stores aren’t about getting your necessary caffeine; they’re about doing something. Think of it as the difference between grabbing a Bud Light at your local pub and going into a local craft brewery for a tour and samples.

You really want to know how serious Starbucks is about these new concepts? Long-time CEO Howard Schultz is stepping down from his role in order to focus solely on the expansion of the Roastery and Reserve stores.

The company also has some cool stuff planned with Italian bakery and pizzeria chain Princi, which it invested in earlier this year. Starbucks detailed more of its plans at its bi-annual investor presentation in New York City recently (Also read: Starbucks News: $10 Coffee, Its Next Five Years, Princi is a Go). 

For now, investors will continue to look at total revenues, earnings, and comps when trading SBUX, and it’s unlikely that these premium concepts will add much value for shareholders immediately. However, Starbucks is clearly looking to establish several new long-term brands that could become part of the overall company experience eventually.

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