Dive Brief:
- 7 Brew began serving five different bakery items starting Sunday in its first foray into food, the chain said in a Thursday press release.
- The menu items will be priced at $3, making them a solid value option for consumers seeking a snack.
- The treats come as the chain’s explosive growth puts pressure on Dutch Bros. and Starbucks, which have both emphasized food innovation as sales drivers in recent quarters.
Dive Insight:
Adding a food menu could help 7 Brew supercharge its sales, while also preparing it for expansion into new consumer occasions and, potentially, real estate. The chain’s lack of food could limit its ability to compete directly with coffee chains that have more extensive offerings in the mornings.
Dutch Bros, which is also a rapidly growing challenger chain in the coffee space, has seen its sales climb steadily since it began rolling out a more expansive food menu. Executives have said Dutch Bros' food offerings are making it easier for consumers to integrate the chain into their daily routines.
Nick Chavez, 7 Brew’s CMO, said the chain was looking to develop menu items that would attract consumer attention on their own rather than being just an add-on to a drink.
“Our guests have been asking for craveable snacks to accompany their favorite 7 Brew drinks, and we wanted to do more than simply check a box,” Chavez said in the press release. “We wanted to create bakery treats so good that people would go out of their way to get them. Our new lineup delivers exactly that.”
The brand will accompany its new treats with several dessert-themed LTO drinks.
Higher sales could help 7 Brew’s franchisees speed up its already meteoric growth. The chain, according to its FDD, began the year with 604 stores and is currently at 900, according to the press release. 7 Brew plans to reach 1,000 units by year’s end, aided by the recent acquisition of dozens of store locations from the bankrupt fast casual chain Salad and Go.
