Putting the ‘Bar’ in Barista: Pricey Lattes, Capuccinos and Macchiatos … With a Beer Chaser?
With a serving concept originally generated about four years ago, and then intensively beta-tested, Starbucks has begun rolling out its new drink and munchies menu, serving beer, wine and its version of bar food to thousands of locations. The new wrinkle, called "Starbucks Evenings," has been thoroughly designed and cascaded into key markets; and alcoholic beverages will be served only in locations where demand is expected to be—high.
Starbucks has reached 40, a mature middle age; and the chain has been actively seeking to rebuild and evolve its brand, and make its locations more a part of the neighborhood. The chain has tried "line extensions" in the past (Starbucks ice cream was a total disaster), but Starbucks Evenings is serious and strategic. The updated stores will have new, more muted colors in their interior design that are definitely a departure from what customers have come to expect—at a refurbishment cost that begins at $25,000 and can reach six figures. From many perspectives, this is a huge gamble for the worldwide chain.
Everyone understands the potential negatives: a compromising of Starbucks' high-end coffee house image, and the business downside this can bring. Baristas need to be trained in how to sell alcoholic beverages, and may also need to be trained in how to deal with "overserved" customers. Finally, the company has to address how to accommodate the minors who frequent their locations in large numbers. After all, drinking coffee and tea is legal irrespective of age; and there may be challenges in setting up spaces for underage customers, for those adults who don't want to be around alcohol, and for those customers who are only in Starbucks for beer and wine. Starbucks is convinced that won't happen, in part because other chains—Chipotle Mexican Grill and Red Robin Gourmet Burgers (though a family restaurant, it's offering dessert/alcohol combinations, such as a Mango Moscato Wine Shake)—have been doing this for some time.
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