Friday, January 27, 2012

SFDB Question Of The Day

Starbucks plans to begin selling beer and wine in some of its stores in Atlanta and Southern California, according to reports...
The move "is a natural progression for us as we are always looking for ways to evolve and enhance the Starbucks experience based on what our customers are telling us," said US vice president Clarice Turner.

"We're pleased with the response of our customers to the introduction of wine, beer and premium food at several of our stores in the Pacific Northwest, and we're excited to see how the idea translates to other markets."

Evening opening hours were was first tried out in Seattle in October 2010, while five stores in the Seattle area and one in Portland, Oregon currently serve wine, beer and premium food.
Americans appear to be evenly divided over this move although demographics does seem to play some part in whether you're for or against it, Starbucks Gossip reports.

Put me in the camp of opposing it. Here's why.

Starbucks customers go to stores primarily for one thing right now...coffee. It's the Starbucks identity and the brand. Secondary to the coffee is a place to assemble and socialize with friends and acquaintances or just to hang out. When wine and beer is introduced, the brand is diluted, in my opinion, and "the place to get coffee" becomes just another "place to hang out"...and you know how many of those we have.

Starbucks should continue to concentrate on coffee and not get distracted.

What do you think?



-image via Marketing Daily



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14 comments:

  1. I agree with you, Rick. I first heard about this some months back, but in an interesting context. They are positioning themselves as more than just a coffee shop, as climate change is going to significantly reduce the availability of Arabica beans. http://www.guardian.co.uk/business/2011/oct/13/starbucks-coffee-climate-change-threat

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  2. Think about what Starbucks was 10 years ago (before they were even in S. Florida. It was coffee and some snacks like cookies and biscotti. They evolved to have some baked goods, then added full on breakfast sandwiches, followed then by more lunch-type food (sandwiches and salads) so I don't think this is completely out of line. The Starbucks brand has extended itself beyond coffee.

    If you compare a coffeehouse and a wine bar the concept is basically the same, you go to a cool quiet place to have a beverage and talk with some friends. Whether it's coffee or wine is secondary. But how many wine bars have free wi-fi!

    My gut is this is nothing about extension and everything about the margins on beer and wine. I personally don't think it'll be successful but at least they're not just sitting around in Seattle counting beans.

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  3. They have little choices for me who dislikes their strong coffee (I like dunkin coffee better). I would be able to get something COLD to drink there that is not a zillion calorie. Now I am limited to hot tea.

    It would probably be the last place I would go if in the mood for a glass of wine, but if I was meeting someone there, I would drink it.

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  4. What you say is true, Lax, and something that I thought about before posting this. For some reason, I'm feeling that this latest expansion might dissolve their branding and identity to a point that's not healthy for the company. Their profits grew 10% last quarter, due primarily to holiday traffic, so I'm also wondering why the push for this extra profit.

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  5. GoD....they have all kinds of iced teas and cold drinks there, many of them in their display cases.

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  6. I don't think this change will significantly change their brand perception in the short term, at least, not any more than removing the name from their logo already has. I wouldn't be surprised to see them branch out still more to cover larger market segments: small shops like we have today, slightly larger locations to have beer & wine and/or light meals, and where the population density and economy will support it, casual dining with table service.

    As to whether or not this is a good thing, well, it depends on the execution. I certainly don't envy the baristas responsible for cutting off PBR-soaked hipsters before they pass out in the comfy chairs.

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  7. Just because they serve beer and wine doesn't mean it will turn it into a sports bar.

    It just means people will have options. I generally don't drink coffee at night but I have friends who do.

    If we stop at Starbucks, I would like to drink something other than bottled water.

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    1. You oughta try their shaken iced teas, Carlos. Good stuff.

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  8. I don't like Starbucks to begin with - over-priced coffee that doesn't taste any better to me than any other. Don't need one on every other corner, etc.

    Having said that, I can probably see myself stopping there for a glass of wine every now and then. Some of the time I just wanna go some place very casual, relax a little, and not have to worry about parking and waiting for a table or bar stool in a noisy place and waiters, bartenders, etc.

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  9. Well, at least this will make the alcoholics happy!

    There are so many Starbucks out there, I don't see this being an issue with a few select ones in each major market. It almost sounds like Books and Books type atmosphere, if they add a magazine rack and newspapers to buy.

    I have a beef with them for not serving decaf after 12 noon. At least the ones in my neighborhood don't. You might wonder what is the point of drinking coffee if it's decaf, but I don't like getting heart palpitations, yet I still love the flavor of strong coffee, so there you go.

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  10. I'm a big fan of Starbucks AND drinking (disclosure: I worked for a Starbucks many years ago, and I still enjoy adult beverages). I dislike the idea of them diversifying into alcohol sales. Like Lax, I think it's going to dilute the brand. There are so many other places I can stop in for a beer, why make it Starbucks?

    The only exception I'd make is if they only hire female baristas, dress them in skimpy uniforms, and start serving wings.

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  11. Hey, I thought coffee is supposed to sharpen one's focus and help avoid needless distraction! ;)

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  12. No one goes to McDonald's for Pizza, and no one heads out to Red Lobster for chili. Starbucks is synonymous with over-roasted coffee and a pretentious approach to service; they should stick to that.

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  13. What I find interesting is how I rarely ever hear Starbucks fans bashing other coffee shops while Starbucks haters never seem to miss a chance. "Over-priced," "over-roasted," "burnt".....whatever. It's a preference, that's all. And there's room for everyone.

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