Starbucks (SBUX) To Open Upscale Cafes

Starbucks made a big announcement this week, announcing that they have teamed up with a top Milan baker in order to bring upscale offerings to customers.

The coffee company has made an unspecified investment in Italian artisan bakery and restaurant company Princi, which will also become the exclusive food purveyor at all Starbucks Roastery locations.

Princi operates five stores in Milan and London and also offers handcrafted food and artisan baked goods based on family recipes. This is the first time in the history of the company that Starbucks will bake onsite at some of its stores.

Starbucks will be opening upscale coffee megashops in major gateway cities to cultivate a reputation for high end coffee.

The Princi products will be at future Reserve Only stores which are locations that serve the company’s premium line of small-lot Reserve coffees in a new retail format inspired by its Seattle Roastery.

Starbucks CEO Howard Schultz commented, ““This is an opportunity for us to elevate food. This will once again reaffirm Starbucks’ leadership in all things coffee.”

Starbucks will also use its real estate wherewithal to help Princi open more locations around the world.

Disclaimer: We have no position in Starbucks Corporation (NASDAQ: SBUX) and have not been compensated for this article.