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Starbucks to test new name, booze sales
The coffee chain will offer alcohol at 1 pilot store in Seattle.
Some people like a bit more than caffeine in their cups, and Starbucks (SBUX) is listening.
The coffee retailer will open a new neighborhood cafe pilot store in Seattle that will offer beer and wine as well as coffee and tea. The new store, which will be called "15th Avenue Coffee and Tea inspired by Starbucks," will also have night-time hours and live entertainment.
Starbucks' current stores do not offer alcoholic beverages -- just lots of java, tea and food.
"It looks to me that they are testing a specialty sub-brand to see if they can capture some other segment of the market that would otherwise be disillusioned by a large corporate chain," Andrew Hetzel, the founder of coffee consulting group Cafemakers, told The Associated Press.
Launching with just one store "gives them a live shop to test changes in menu offerings, store design and, perhaps, procedures quickly" without disrupting operating stores branded with the Starbucks name.
Starbucks has faced increased pressure from McDonald's (MCD) new coffee drinks, and it recently announced plans to change the recipes to some of its food items to provide healthier options for its customers.
Starbucks has also felt the pain of the recession and of too much expansion. Last July, the company said it would close more than 600 underperforming U.S. stores. In January, Starbucks tacked on an additional 300 stores around the world to that list. The company had 16,862 cafes at the end of March.
Shares of Starbucks were up 4 cents to $14.45.
TO "WhoCaresYall..."
Oh, by the way, you don't particularly strike me as the "classy" type of guy, either.
TO "WhoCaresYall..."
...obviously, YOU don't care.... so, what's the problem?!!
It's all in jest, b*tthole! If you can't tell the difference, maybe you ought to pull that large stick out your a#@ and replace it with an enema. It'll fit you nicely!!!!!
"15th Avenue Coffee and Tea inspired by Starbucks"? Are you kidding me??? You expect a DRUNK to say ALL that?? How about Mo-Bucks, Nu-Bucks, or Boo-coo Bucks???
There are already bars/nightclubs for people who want to drink alcohol and listen to music......I can only imagine the new starbucks bar being labaled as a bar for elitist snobs-not something most people in this economy want to be seen as. All in all, another dumb business move by out of touch management.Great idea that has 0% chance of working in reality. When you add alcohol and live music to the mix you encounter a whole new level of bureaucracy not present on them now. There will be communities where they will not be able to put this Starbucks because they don't allow liquor licenses, or they don't allow liquor to be sold on Sundays. There will be noise ordinances because of the live music, and communities who won't want yet another music club in their neighborhood because of the lack of parking. Not to mention that in many communities over 51% of your total revenue has to be from food to not be designated a bar, which makes Starbucks subject to closing times, behavior guidelines, and a zero tolerance on selling alcohol to minors (you get caught once, your liquor license is revoked). And each community has dozens if not hundreds of conflicting ordinaces.
In the end it's a hassle they're not going to be able to handle.
Smoothie, you crack me up. you may spend $4, but it's not for a cupt of Joe. Coffee at my Starbuks cost $1.85 for a 16 oz drink. Even the local donut shops are charging close to that for day old coffee!
If Starbucks has a problem it was simply expanding too far too fast. Close down about 20% of their stores, and they will do just fine. The good locations in our area are doing great.
StockScouter data provided by Gradient Analytics, Inc.
Quotes supplied by Interactive Data.
MSN Money's editorial goal is to provide a forum for personal finance and investment ideas. Our articles, columns, message board posts and other features should not be construed as investment advice, nor does their appearance imply an endorsement by Microsoft of any specific security or trading strategy. An investor's best course of action must be based on individual circumstances.
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