25th Jan 12
Starbucks to offer wine and beer
by Katie Naylor
Fancy a brew? experts say move could be more trouble that it's worth
Fancy a brew? experts say move could be more trouble that it's worth
Starbucks is set to offer wine and beer in a number of cafes in southern California and Georgia by the end of this year.
The biggest coffee chain in the world introduced the alcoholic beverages to a cafe in Seattle in October 2010. Now there are five Seattle-based outlets, plus one in Portland, Oregon, which sell beer and wine, in addition to evening snacks such as desserts, flatbread and cheese plates. It is $5 (£3.20) for a beer and between $7 and $9 for wine.
The company, which is currently testing wine and beer sales in Spain, announced recently that it planned to bring the beverages to seven Chicago-based cafes before the end of this year. Some restaurant experts feel that selling alcoholic beverages may anger community groups and make the company’s operations more complicated.
Consulting firm Technomic’s executive vice president Bob Goldin said that the new business opportunity might not outweigh the headaches. He pointed to potential opposition from people who reside close to the outlets, difficulties being granted liquor licenses and alcohol regulations which vary from state-to-state. He added that he feels it will create more problems than it’s worth.
Starbucks’ senior vice president of operations in the US, Clarice Turner, told Reuters that numerous other restaurants sell wine and beer and that it is not unusual for Starbucks to try out something new. She said that the cafes are natural places for customers to connect and unwind.
Ms Turner went on to say that the chain had carefully chosen the approximately 25 US cafes which will be selling alcoholic beverages during afternoons and evenings, adding that no plans were in place to offer wine and beer in all of its roughly 17,000 cafes worldwide.
Quick-service restaurant companies in the US are increasingly adding morning and late-night menus as well as extending food and beverage options in an attempt to increase sales. In addition to Starbucks, Burger King is also experimenting with alcohol sales.
Alcohol Justice, a California-based industry watchdog, has criticised both companies’ moves, with Burger King selling beer in some of its newly-introduced Whopper Bar restaurants. The group’s director of research Sarah Mart said that the more places which open, the more chance there is of alcohol-related incidents, giving the example of underage drinking.
Starbucks also intends to introduce juice bars to the US in 2012, a move which some analysts feel is more compatible with its core business. Some experts are of the opinion that the company may be best to stick with areas it is familiar with.
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