Starbucks is slated to embark on a new business model venture: the opening of a Reserve Roastery and Tasting Room molded after other boutique coffee chains.
"If you look at coffee imports over all for the last several years, it looks like a pretty mature market," Josh Green, chief executive of Panjiva, told the New York Times in his analysis of the venture.
"There's been a roller coaster in terms of price, but in terms of volumes, we're talking about very modest growth - and that kind of market is usually where you see companies trying to go upmarket in terms of price and exclusivity."
The company is said to have launched the initiative as a way to remain competitive against smaller, locally-owned coffee shops that already offer those services.
The new Starbucks Roaster, however, comes at a steep pricetag: over $20 million. It will function as both a store, theater and manufacturing facility, according to the Times. The Roaster will emulate food and drink facilities that offer tours and interactive technology allowing consumers to participate in the production of coffee.
"Each one has a signature nature, and each year it may be different, depending on when the rain comes and how much shade it gets," said Espresso Vivace owner David Schomer told the Times.
"Each one will be roasted differently by the roaster, who may develop more or less caramelization or more or less bitterness."
Starbucks' new Roastery and Tasting Room will be located in Seattle.
