Burger King Strikes a Deal with Starbucks to Sell Coffee; Will Also Revamp Menu
Burger King executives announced Tuesday that the country's No. 2 burger chain will begin adding Starbucks Corp.'s Seattle's Best Coffee to all of its U.S. restaurants in a phased roll-out that will begin this summer.
Such a move clearly takes a page from rival McDonalds Corp.'s book, which has seen success with its McCafe line-up of coffee drinks that have been credited with boosting its performance. It also throws an interesting new twist into the coffee wars, as McDonalds' ads have been taking aim at Starbucks.
John Schaufelberger, senior vice president of BK's global product marketing and innovation, said that improving the company's breakfast business is amongst its "top strategic priorities, and added that:
More than 7,000 Burger King restaurants will begin to sell the coffee, as well as iced varieties that will come with a choice of plain, vanilla, or mocha falovrs and whipped toppings. The drinks will be sold all day, and while prices will be set by franchise owners, the suggested prices will range from $1 to $2.79.
The BK Joe coffee brand that Burger King currently sells and promotes will be retired when the new drinks begin to roll-out. Execs also say that consumers can expect to see "new and improved products" from Burger King at breakfast.
Starbucks acquired Seattle's Best in 2003, and this deal with BK marks the latest expansion of that line. Recently, Starbucks also signed a deal with Subway to sell the coffee in 9,000 locations.
Terms of the deal have not been disclosed.
