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The Street
The Street
Business
Veronika Bondarenko

Starbucks Challenges Popeyes and Wendy's With Its Latest Addition

You are, at this point, not a fast-food chain if you haven't added a chicken sandwich to your menu sometime in the last three years. 

It started when, in 2019, Restaurant Brands International (QSR)-owned Popeye's launched its chicken sandwich. Demand for the fried-chicken-and-pickles creation was so high that, at its peak, many restaurants were putting up hand-written "no more sandwich" signs to ward off the eager hordes lining up outside.

Such sweeping success did not go unnoticed by other chains, which all tried to capitalize on demand by introducing their own versions.

In the last two years, everyone from McDonald's (MCD) and Wendy's (WEN) to Panera Bread PNRA all introduced their own versions of the chicken sandwich even as the craze ultimately fizzled out and it became yet another item on Popeye's menu.

Chicken Sandwiches Are Coming To The Coffee Chains

In one more sign that the chicken sandwich has moved beyond fast food alone and into the realm of coffee, Starbucks (SBUX) is the next chain to start selling chicken on a bun.

Starbucks

Launched to mark the official first day of summer, the Seattle-based coffee giant introduced the Chicken Maple Butter and Egg Sandwich — breaded chicken breast and eggs in between two pieces of biscuit.

The fact that this chicken sandwich is a breakfast, rather than lunch item, hearkens to yet another trend. 

As the country emerges from the pandemic, the numbers of those who eat breakfast on the go has jumped.

Wendy's, in particular, has made massive strides in this space and recently launched a string of new sandwiches such as the Breakfast Baconator, the Classic Sausage, Egg & Cheese Sandwich and the Classic Bacon, Egg & Cheese Sandwich.

New Drinks Are Also Coming

While they scream summer, the Pineapple Passionfruit Starbucks Refresher and Paradise Drink Starbucks Refresher are also joining Starbucks' permanent menu.

The two new drinks were introduced at the same time as the Chicken Maple Butter Sandwich and are hand-shaken juice refreshers at 100 calories each.

"The Paradise Drink Starbucks Refreshers beverage is like sunshine in a cup — the bright tropical flavors are radiant, happy, and joyful," Raegan Powell, a Starbucks senior product developer from Starbucks R&D who worked on development of the new drinks, said in a statement. "It's the perfect summer sip for a little moment of escape wherever you are."

Two more Starbucks additions are the Cookies & Cream Cake Pop — different flavors of the bite-sized round pieces of cake on a stick are some of Starbucks' most popular dessert offerings — and a new series of reusable cold cups, tumblers and water bottles.

Everything Is Going To Be Breakfast From Now On?

Each of these new additions point to a different industry trend — tropical drinks are perfect during the summer months while the drinking vessels are a part of Starbucks' wider strategy to reach more environmentally-minded consumers.

But the biggest change sweeping the fast-food industry is undoubtedly a renewed focus on breakfast. McDonald's has for years dominated this space.

The fast-food giant derives approximately 25% of its sales from items served before 11 a.m. while, for the most part, other chains had only a few symbolic breakfast items that were immediately forgotten as soon as the main menu time hit.

The post-pandemic demand opened up a new opportunity for brands to get into this space. Back in March, Starbucks rival Peet's Coffee tried to combine it with growing demand for vegan options with a breakfast sandwich made from Beyond (BYND) Breakfast Sausage, JUST Egg and vegan cheddar cheese.

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