RISE - Menu Monitor

Nashville International Airport has opened four restaurants in phase one of a three-part concession development program.
HMSHost Corp. has an 11-year contract to develop new food and beverage venues for the airport. Baja Burrito, Famous
Famiglia Pizzeria, Quiznos Subs and Burger King are the first restaurants to open in the C Concourse Food Court. They will
be followed by two Starbucks Coffee units, Noshville Delicatessen, Jack Daniel’s Tennessee Tavern, Neely’s Barbeque,
Gibson’s Guitar Café and Provence Breads & Café. HMSHost operates in more than 100 airports worldwide. (PR Newswire
Online 8/14/07)
Hershey Co. and Starbucks are teaming up to sell coffee-flavored chocolate products in retail stores beginning in the fall. The
chocolates will be based on coffee flavors featured at Starbucks and will also include fruit, nuts, herbs and spices.
(Forbes.com 7/19/07)
Starbucks will have shops in Great Atlantic & Pacific Tea Co Inc. grocery stores as soon as November. A&P will operate the
Starbucks locations under a licensing deal. The first locations are slated to open in New Jersey. (Reuters.com 8/30/07)
Starbucks teamed with Kraft Foods Inc. to add several varieties of Starbucks coffee to the Tassimo single-cup brewing system
in the U.S. and Canada. Beginning in December, consumers will be able to buy Starbucks’ House Blend, Breakfast Blend,
Caffe Verona and Africa Kitamu to use in Tassimo coffee machines. Kraft currently handles the sales and marketing for
Starbucks coffee in supermarkets and club stores in the U.K., U.S. and Canada. (Chicagobusiness.com 9/4/07)
Starbucks Corp. sold $550 million in 10-year senior notes, with the proceeds slated for debt repayment and share
repurchases. Starbucks earned $545.3 million after fees. (Nation’s Restaurant News 9/3/07)
Starbuck Corp. is predicting a shortage of premium arabica beans for the chain’s competitors due to an increasing worldwide
demand for premium coffees. The company told Reuters that Starbucks’ 14,000 units will not be affected by the shortages
because of its longstanding relationships with growers of premium coffees. (Nation’s Restaurant News Online 9/7/07)
Starbucks is hiring 180 employees after opening 31 units in southern Florida in the past year. The chain plans to open an
additional nine locations in Miami-Dade, Broward and Palm Beach counties within the next three months. Starbucks’ work
schedule and benefits package are the same for part- and full-time employees. (Miamiherald.com 9/24/07)
College libraries are opening Starbucks outlets inside their facilities to keep students from going to nearby wired coffee shops
to study. Approximately 30 colleges now offer Starbucks in school libraries, including California State University at Long Beach
and University of South Florida in Tampa. Many academic libraries with Starbucks have noted increased business as well as
decreased spillage and book damage since students are no longer hiding food and drinks. (USA Today Online 10/1/07)
Starbucks has recalled its plastic children’s cups. The company said that when the cup is dropped, the face on the cup can
break off and leave small parts or sharp edges that can pose a choking or laceration hazard. Starbucks is recalling four styles,
including “Dash” Green Turtle; “Dot” Red Ladybug; Bunny Pink; and Chick Yellow. The cups were sold for $6 in Starbucks
locations from May through August. (Company Release 10/9/07)
Starbucks temporarily closed 120 of its units in San Diego, CA, due to the fires in Southern California. (NRN Daily NewsFax
10/24/07)
HMS Host Corp. has partnered with Sammy Hagar to introduce a new island-style café at the Kahului Airport in Maui, Hawaii.
Sammy’s Beach Bar and Grill will be a full-service restaurant with a beach-inspired casual atmosphere, and will feature signed
memorabilia from Hagar’s personal collection. The bar and grill is slated to open in early 2008. It is one of four new HMS Host
dining venues slated to open at the airport. The other additions include a Jamba Juice, a Starbucks and a California Pizza
Kitchen. (Businesswire.com 11/07/07)
Starbucks has rolled out an Espresso Experience for the holidays. The coffee chain is now offering the Sirena, a $599 highend
home espresso machine available at select stores and online. Starbucks says the machine helps deliver “’behind the bar’
taste and the Starbucks experience at home.” In addition, the company has introduced Espresso Regalo, its first new espresso
blend in 30 years. Regalo, a mixture of roasted Ethiopia Yirgacheffe and Costa Rica central valley 100% certified organic
arabica beans, is available in half-pound bags and retails for $8.95. (Businesswire.com 11/15/07, Company Website 11/15/07)
Starbucks Corp. reported a 35% increase in fourth-quarter earnings over the same period last year despite its first ever drop in
U.S. customer traffic. The company says the 1% decrease in traffic over the fourth quarter was due largely to the economic
slowdown coupled with the company’s recent price hikes. For the quarter ended September 30, net income was $159 million,
up from $117 million for the previous year. Same-store sales rose 4%, helped by added food options, music sales and
international expansion. Despite the drop in traffic, value per transaction increased by 4%. In the wake of the economic
slowdown and the emergence of new high-end coffee competitors like McDonald’s and Wendy’s, Starbucks has lowered by
100 its projected new U.S. store openings for 2008. The company also lowered its forecasted earnings per share for fiscal
2007. The company had projected revenue growth of 17% to 21% per share, but has pared that down to 17% to 18%.
(Marketwatch.com 11/16/07, abcnews.com 11/16/07)
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