Peet’s
Business Strategy | Menu & Product Creation | Operations
First in coffee, future in food.
13.5%
Uplift in warm food sales during market test
10.2%
Uplift in bakery sales during market test
Over the past 50+ years, Peet’s Coffee has built a nationwide reputation as the original craft coffee; its commitment to the highest quality, freshly roasted, sustainably sourced beans has never wavered. Today, Peet’s operates over 200 company-owned stores and hundreds of licensed locations across the United States.
Armed with a new brand positioning of “Coffee for coffee people,” Peet’s was ready to take its proposition to its next phase of growth. But Peet’s needed a food program that could grow alongside its ambitions.
The opportunity.
The insights.
Peet’s existing food program was by no means broken. But it lacked the same degree of focus and identity that made its coffee program so distinctive. Both bakery and warm breakfast exhibited varying degrees of quality and consistency across both regions and items. The portfolios, too, tended to over-index in basic, expected items. To elevate Peet’s food program to the same standard as its coffee, TCE anchored Peet’s new food innovation at the intersection of premium appeal (elevated forms, ingredients, and flavors) and visual interest (vibrant colors and forms to reflect the boldness of the brand and the coffee).
The activities.
After establishing a food program brand identity we could rally behind with a distribution model to support a nationwide program, TCE began optimizing, validating, and developing the an evolved menu across pastry, warm food, and grab & go. We analyzed the current menu from a brand, guest, financial, and operations perspective to better understand which items to keep, optimize and retire. We also outlining potential menu gaps – such as savory pastry, afternoon treats, and hearty vegetable forward builds – around which to focus new innovation. From there, we validated the full menu through a TURF before aligning on our portfolio for development. Our final step was to work hand in hand with suppliers to develop benchtop samples that brought our identity to life.
The results.
Peet’s three phase launch across pastry, warm breakfast, and grab & go is currently underway. Its revamped cooler program was rolled out in April 2025, which resulted in a +20% year over year sales lift.
Two new warm afternoon sandwiches were introduced in June – the Tomato Focaccia Sandwich and the Grilled Cheese Croissant – and three others were launched this Fall – the Bacon Sausage Cheddar Crispy, Cheesy Sausage Slider, and Mediterranean Frittata Sandwich. Since being rolled out, the Warm Food category is delivering +13.5% net sales and +5.6% in units per day.
Peet’s is currently piloting its new bakery program in Southern California, before rolling out the initiative nationwide in January 2026. So far, the test has delivered +10.2% net sales and –5.4% UPD. More specifically, the Danish category is up +300% year over year.
