The Daily Item, Sunbury, PA

Community News Network

March 20, 2014

Starbucks to expand evening alcohol sales to thousands of stores

CHICAGO — Starbucks is going big on booze.

Starbucks will expand its evening alcohol and light bites menu, which includes bacon-wrapped dates and Malbec wine, to thousands of stores, Chief Operating Officer Troy Alstead said in a phone interview. The rollout, which can help boost sales, will take several years, he said.

"We've tested it long enough in enough markets. This is a program that works," he said. "As we bring the evening program to stores, there's a meaningful increase in sales during that time of the day."

Starbucks has been focused on selling more non-coffee items, such as alcohol, juice, Teavana tea and food, to stoke U.S. growth. The company also is expanding and improving its rewards program and mobile applications. Earlier this month, Starbucks said it would soon test a way for customers to order items ahead of time with their smartphones.

Shares for the Seattle-based company has dropped 3.2 percent this year, compared with a 0.7 percent increase for the Standard & Poor's 500 Index.

The company first sold alcohol in October 2010 at a Seattle store. In January 2012, Starbucks said it was expanding the test to as many as 25 locations in Chicago, Atlanta and Southern California. In Chicago, the after-4 p.m. menu includes fare such as truffle macaroni and cheese, chicken skewers, Chardonnay and chocolate fondue.

The evening food and drinks, which are in about 40 stores now, won't work in all Starbucks cafes, Alstead said. He said they've seen success in some urban areas, near other restaurants and theaters, where people are out at night.

Last month, Chief Executive Officer Howard Schultz handed over the company's day-to-day operations to Alstead, so Schultz could focus more on digital, mobile, loyalty and electronic- commerce initiatives. The company said yesterday in a statement that its mobile-payment application has been gaining traction.

Mobile payment now accounts for 14 percent of in-store transactions in the U.S., up from a 10 percent rate disclosed in July. Starbucks also said it will open at least 20 additional Teavana stores in the current fiscal year.

 "Mobile is very important," Peter Saleh, a New York-based analyst at Telsey Advisory Group, said in a phone interview. "The companies that are taking share are the companies that have some mobile, digital platform - Papa John's, Domino's, Starbucks, Dunkin'."

Starbucks's loyalty program entices diners by offering free beverages, food and refills in return for points they've accumulated from purchases. Customers can pay with mobile phones or Starbucks cards that are linked to their account.

As part of its effort to sell more tea, the company will begin offering Oprah Winfrey-branded chai tea on April 29 at stores in the U.S. and Canada, Schultz said at the company's annual meeting Wednesday. Winfrey, the television personality and entrepreneur, tasted different tea varieties and helped Starbucks create the blend, which includes black and rooibos teas.

"This felt like something that I really loved, that I really cared about," Winfrey told Schultz at the meeting. Starbucks will donate money from the tea's sales to charities that support youth education.

Starbucks bought Teavana Holdings last year in a transaction valued at about $626 million. It has since been expanding the brand and plans to open tea bars in Chicago and Los Angeles this fiscal year.

Starbucks has more than 20,100 locations worldwide, including about 11,500 in the U.S.



 

1
Text Only
Community News Network
  • Can black women have it all?

    In a powerful new essay for the National Journal, my friend Michel Martin makes a compelling case for why we need to continue the having-it-all conversation.

    July 29, 2014

  • Dangerous Darkies Logo.png Redskins not the only nickname to cause a stir

    Daniel Snyder has come under fire for refusing to change the mascot of his NFL team, the Washington Redskins. The Redskins, however, are far from being the only controversial mascot in sports history.  Here is a sampling of athletic teams from all areas of the sports world that were outside the norm.

    July 28, 2014 3 Photos

  • 'Rebel' mascot rising from the dead

    Students and alumni from a Richmond, Va.-area high school are seeking to revive the school's historic mascot, a Confederate soldier known as the "Rebel Man," spurring debate about the appropriateness of public school connections to the Civil War and its icons.

    July 28, 2014

  • Fast food comes to standstill in China

    The shortage of meat is the result of China's latest food scandal, in which a Shanghai supplier allegedly tackled the problem of expired meat by putting it in new packaging and shipping it to fast-food restaurants around the country

    July 28, 2014

  • wd saturday tobias .jpg Stranger’s generosity stuns Ohio veteran

    Vietnam War veteran David A. Tobias was overwhelmed recently when a fellow customer at an OfficeMax store near Ashtabula, Ohio paid for a computer he was purchasing.

    July 28, 2014 1 Photo

  • Screen Shot 2014-07-28 at 1.33.11 PM.png VIDEO: High-dive accident caught on tape

    A woman at a water park in Idaho leaped off a 22-foot high dive platform, then tried to pull herself back up with frightening results. Fortunately, she escaped with only a cut to her finger.

    July 28, 2014 1 Photo

  • CATS-DOGS281.jpg Where cats are more popular than dogs in the U.S.-and all over the world

    We all know there are only two types of people in the world: cat people and dog people. But data from market research firm Euromonitor suggest that these differences extend beyond individual preferences and to the realm of geopolitics: it turns out there are cat countries and dog countries, too.

    July 28, 2014 1 Photo

  • How spy agencies keep their 'toys' from law enforcement

    A little over a decade ago, federal prosecutors used keystroke logging software to steal the encryption password of an alleged New Jersey mobster, Nicodemo Scarfo Jr., so they could get evidence from his computer to be used at his trial.

    July 25, 2014

  • Russia's war on McDonald's takes aim at the Filet-o-Fish

    Russia said earlier this week that it had no intention of answering Western sanctions by making it harder for Western companies to conduct business in Russia.
    But all bets are off, apparently, when you threaten the Russian waistline.

    July 25, 2014

  • cleaning supplies Don't judge mothers with messy homes

    I was building shelves in my garage when a neighbor girl, one of my 4-year-old daughter's friends, approached me and said, "I just saw in your house. It's pretty dirty. Norah's mommy needs to clean more."

    July 25, 2014 1 Photo