Friday, March 21, 2014

Starbucks Evenings

I recently came across an article about "Starbucks Evenings." In select locations, Starbucks will start to offer wine and beer and an extended food menu (including truffle macaroni and cheese and chocolate fondue)  after 4:00pm. According to their site, after 4pm customers will "experience a more mellow, less hurried atmosphere for winding down and having casual conversations." The selection will vary to meet "local test preferences." In recent years, Starbucks has expanded its offerings to include breakfast and lunch options, as well as Starbucks Ice Cream--that way, more customers would come in during lunch hours, and buy more Starbucks products in general. They have also made large deals with other big companies, including Evolution Fresh (juices), Whole Foods, La Boulange, and Teavana. Now, with the addition of gourmet food and alcohol for Starbucks Evenings, Starbucks has expanded its brand even more to draw people in at later hours--thus creating in billions of dollars in potential revenue. Starbucks' brand extension has been successful because it has been able to leverage its existing customer base and brand loyalty to create new products.  Through extension, Starbucks has successfully skewed its image to be more of a lifestyle/food and drink brand than just a simple coffee shop. Starbucks' chief operating officer noted that the addition of alcohol to Starbucks cafes won't work everywhere--based on test runs, he said they've seen success in urban areas, near other restaurants and theaters, where people are out at night. Location and the characteristics of consumers in certain areas is important to consider as Starbucks expands in this new direction.


http://www.starbucks.com/coffeehouse/starbucks-stores/starbucks-evenings

http://www.businessweek.com/articles/2014-03-20/what-to-expect-from-starbucks-new-booze-menu

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