Forbes

Starbucks‘ has stopped selling beer and wine at more than 400 of its stores in the U.S. as the company ends its “Evenings” program. This program was launched in 2010 when the company started serving alcohol and featuring food in the evening at certain locations to attract customers. This was supposed to be expanded to thousands of stores over time. However, the company is now looking to integrate this program with its premium “Roastery” stores. The company is likely to focus on its breakfast and lunch menus in its stores to drive revenue growth. Earlier this month Starbucks launched Sous Vide egg bites to its breakfast menu, which is a cooking method that does not require extra fat or oils, suiting preferences of health conscious customers. The wine and beer experiment did not work well with Starbucks’ brand and shifting the “Evenings” program to its high end Roastery stores might be a better strategy. These stores already focus on elevating the coffee experience and target premium customers. Serving alcohol in these stores might work better than the “Evenings “program at its regular coffee shops.

Shift Of Focus To High End Roastery Stores

Starbucks’ “Evenings” program was aimed at driving traffic in the latter part of the day, since most customers flocked its stores for their morning coffee. By introducing wine and beer, the company hoped that it could attract customers in the evenings. However, it appears that this strategy did not work, especially since table service in the evenings conflicted with the counter service format in the mornings. Also, the company is now shifting focus too its high end Roastery stores for its next wave of growth and could well introduce alcohol in these stores. For its regular coffee shops, the company is focused on food — breakfast, lunch and brunch — to increase customer spending. We believe this strategy will work better for Starbucks. According to our estimates, the Food, Coffee Product and Merchandise spending at a Starbucks store is likely to increase from $2.29 in 2017 to around $ 2.82 by the end of our forecast period.
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