Starbucks: oatmeal to thank for historic sales lift

September 29th, 2008, 3:30 am · 20 Comments · posted by Nancy Luna, Staff Writer

Starbucks calls its new oatmeal the "hero" of its new breakfast line.

I guess my mom was right.

The other week my mom was feeling absolutely lousy. She’s recovering from back surgery and hasn’t had much of an appetite. So, the other week, I stopped by my local Starbucks to buy her some oatmeal.

As you might recall, the hot cereal is part of a new line of six “good for you” breakfast foods the cafe chain rolled out earlier this month. (Preview: Starbucks new Breakfast Foods)

After delivering the hot meal to my mom, she gobbled it up.

A few days later, she told me this: “I tell you — that Starbucks has something there with that oatmeal. It’s really good.”

Starbucks is now confirming what mom knew for weeks.

The oatmeal is the “single highest volume (food) item” in Starbucks history, the chain said in a recent media conference.

The company called the oatmeal the “hero” of the cafe chain’s new health-oriented breakfast menu. Starbucks said the entire breakfast line is contributing to rising ticket sales for food.

“We have seen the entire food business lift,” Michelle Gass, senior vice president of marketing, said in a statement emailed to me. “We believe we have hit a home run.”

Starbucks new breakfast foods

Great news for Starbucks.

But, can oatmeal save Starbucks from its rapid, year-long decline?

Tell us: Have you tried the new breakfast foods? Do you like them?

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Tim Liao says:

September 29, 2008 at 7:36 am

That is amazing considering the few times I bought this thing they just took dehydrated oatmeal and added hot water and gave me a package of dried fruit to put on top. The marketing department at Quaker should be fired for not being able to charge more for their instant oatmeal they sell at stores. Don’t get me wrong I thought it was tasty and I have long written suggestions to Starbucks and McDonalds they should add oatmeal to their menu but I was thinking they would like actually cook up a big pot of that non-instant type rather then what they are doing now which is to add hot water to instant oatmeal.

Post Reply

September 29, 2008 at 7:38 am

If this is Starbuck’s definition of hearty oatmeal we should anticipate “Cup of Noodles” if they ever introduce a soup initiative.

Robin S says:

September 29, 2008 at 8:50 am

I tried Starbucks oatmeal and I couldn’t take another bite. It was horrible. I couldn’t take a second bite. It was also very overpriced but I was at the airport so maybe the price is different at other Starbucks.

audiogirl says:

September 29, 2008 at 11:32 am

I’ve had better oatmeal slopped onto my chow hall tray in boot camp.

What a sorry state of affairs if this paste is saving Starbucks.

Brad says:

September 29, 2008 at 12:27 pm

I thought it was marginal but not horrible.

I too had it at an airport and it was $2.50. At the grocery I can buy 5lbs of it for that.

However, for convenience, and yum factor, it’s not too terrible.

If you’re looking for gourment, irish, steel cut oats, look on. But if you want a hot, hearty breakfast and don’t want grease, it’s definitely the ticket. I’d get it again but would prefer to see fresh nuts or fruit instead of the cheezy bagged variety

Joanna says:

September 29, 2008 at 1:10 pm

I actually liked it quite a bit. Filling, tasty and good price point for a breakfast on the go.

michelle says:

October 9, 2008 at 2:47 am

I liked it too, it was nice and creamy. I only put brown sugar in it. I wouldn’t buy it often, but it is something I occasionally get with my coffee.

Bullfinch says:

October 9, 2008 at 8:53 am

I am not a hot cereal lover but this oatmeal was really good with the dried fruit. It is not like other instant oalmeals. This is thick and not soupy.

You could overanalyze this to death….it is a good breakfast in a convenient to go package. Good job Starbucks.

pat says:

October 10, 2008 at 6:34 am

I tried it this morning, nothing great, not hearty at all. It was served lukewarm and I was advised to let it sit for two minutes to boot! It was no better than Instant Quaker Oats that I can make in my office microwave for much less $. How about offering to make it with steamed milk or honey as a sweetener? That might jazz it up a bit.

DJ says:

October 10, 2008 at 9:26 am

I stopped by a Starbucks early one morning near the Marina, and it was a filling breakfast for a cold morning. The price wasn’t unreasonable, if you factor in convenience.

Amanda says:

October 11, 2008 at 9:27 am

I really liked the oatmeal, and I usually only eat Irish oatmeal that takes 45 min to make. I also find it convenient and if I’m spending 4 bucks on coffee why not 2 on oatmeal?

SMR says:

October 14, 2008 at 2:02 pm

Try the oatmeal at corner bakery…MUCH better than starbucks!

Colleen says:

October 15, 2008 at 12:15 pm

I haven’t tried….but as Alton Brown says, he wouldn’t feed instant oatmeal to a horse!!!!! Once you’ve had steel-cut, it’s hard to go back to instant. But considering the surgary, fatty, less than filling sweets Starbucks serves, I guess it’s something. I’d be happy with a multi-grain bagel choice in addition to the plain bagels. Those 8-grain muffin things look scary! But I still love my Starbucks in the morning!

bob says:

October 17, 2008 at 7:36 am

honestly, i am 24 year old dude who cannot cook for the life of him- i cannot even properly microwave popcorn. I live in city where anythign I could want is at my convenience yet almost every morning I get this oatmeal@starbucks. Why? the convenience, the health benefits of oatmeal, and the ignorance of better options. this was definitely created for people like me.

Kristen Zatina says:

October 22, 2008 at 7:06 am

Starbucks’ new menu provoked me to have a new thought on an old favorite…

Surpassing reduced-calorie coffee cake to become the number one food item throughout the entire company-wide chain, OATMEAL has become Starbucks’ most successful food launch of all time.

Now the analysts are asking WHY? It’s not that cold yet outside. It costs about 25% more than most other choices in the big, glass case. And well, it’s oatmeal for Pete’s sake! The descendent of grandma’s porridge! A food synonymous with an old man topped with fluffy white hair and a colonial hat!

Maybe it was the genius title that emerged from a Seattle-based brainstorm: “The Perfect Oatmeal” leaves little room to contest quality. Or is it the 1.5 million free coupons that Starbucks sent out to its rewards-program members? Or the frequently flashed fact that oatmeal lowers cholesterol? The packaging is trendy? Are oats 100% recyclable? Perhaps customers are just too intimidated by the word “piadini” to attempt pronouncing that instead during the breakfast rush?

Or is it something as simple as service?

YOU don’t just want oatmeal. YOU want it with brown sugar, nuts, dried fruit toppings or a combination. Three minutes of seeping later, YOUR oatmeal is fully prepared, ready for YOU to enjoy. It’s exactly like ordering the original coffee beverages that propelled Starbucks’ initial growth. It wasn’t a complicated idea. YOU order YOUR latte decaf, skim, not too hot, with an extra shot… The baristas are at YOUR command and while YOU are in control, YOU don’t have to do a thing except literally taste the fruits of YOUR hard earned money.

And that’s how I think Starbucks sowed its wild oats and reaped the revenue.

Warren says:

November 9, 2008 at 6:41 am

After seeing the display of the new oatmeal product one afternoon, I was looking forward to giving it a try. I made a special early morning trip to buy this new product. My expectation was steel-cut oatmeal or oatmeal that is cooked in a pot. Afterall, Starbuck’s usually offers the best of everything.

Well, for the taste and price for a small cup of instant oatmeal, I will never buy that again. What a rip-off!

David says:

November 9, 2008 at 3:45 pm

Starbucks, how they ever became so popular is beyond me. Acidic, burnt tasting coffee, and ridiculously overpriced to boot. Of course people don’t buy coffee there anymore, no, the liberal yuppies who frequent those places order something more along the lines of “soy, no fat, extra froth, triple shot, cinnamon dusted, hold the mayo, latte.” Oh, and forget about ordering a small, medium, or large. If you don’t know the Italian name of said sizes you will be ostracized by both the “Barista’s” and the hoity toity customers. For all of that, you have the “privilege” of paying $4 or $5 for some foo foo coffee concoction. What a racket!

I drive by a Starbucks on my morning commute to work and I seel all the yupps walking out with their designer $5 coffee drinks and I laugh, while thoroughly enjoying my Folgers morning blend (which incidentally cost the same amount for an entire bag that lasts a couple of weeks as one “Venti” Starbucks coffee concoction) in a thermos. Now I guess I’ll start seeing them with a coffee drink in hand, and this new oatmeal item in a another. Of course for $2 plus tax I could buy a box of oatmeal that will last a week, but that would be too practical wouldn’t.

If I must drink coffee out, give me a $1 cup of McDonalds coffee over that crap they call coffee at Starbucks any day of the week. And I don’t have to order in Italian either!

jenn says:

November 18, 2008 at 5:55 am

I just ate the Starbucks Oatmeal - I can do better at home with quick cook oats and a microwave - just some careful planning the night before and voila!
The Corner Bakery does a better oatmeal for on the go.

Sadly - i’ll probably buy it again if I am in a pinch.

Ransomed says:

November 18, 2008 at 9:24 am

Tried it today - not too bad. However the suggestion above about adding milk or honey sounds great. I had to get half and half to make mines more creamy.