24 Jan 2012

An extra shot with that? Starbucks to sell booze

The giant coffee chain is turning its baristas into bar staff by offering wine and beer in a selection of US stores. But do customers really want alcohol alongside their soy decaff latte?

Starbucks logo (Getty)

It’s already got more coffee permutations than digital places on Pi. Now, along with your Grande double shot decaff no foam soy latte with cinnamon atop – you can soon order a glass of Prosecco or a pint of beer at your local Starbucks.

The chain began offering alcoholic drinks in a handful of locations in its native Seattle back in 2010 as a test run: now it’s rolling out the concept in parts of Southern California, followed by Atlanta and Chicago, in an effort to capture the ‘Happy Hour’ crowd.

‘Enhancing the Starbucks Experience’

Beers will cost around $5, with wine on sale for between $7 and $9 a glass, and the firm is looking to “enhance the Starbucks experience”, as they put it. “As our customers transition from work to home, many are looking for a warm and inviting place to unwind, and connect with the people they care about.” And nothing says unwind, quite like a sippy-cup of Chardonnay. Drink a bit more than you should, and you can always order a double espresso to sober up.

It could be a risky concept for the coffee firm, which has managed to turn its financial fortunes around since a rocky patch in 2008. Hundreds of new store openings are planned for the upcoming year, while shares soared by 43 per cent in 2011.

Risky strategy?

Many core customers are young parents with children, or students trying to study and use the free wi-fi – and not all of them might be so comfortable in a venue selling alcohol – even if there’s a menu of “upscale food” (for which, read flatbreads and cheese platters) which comes with it.

But Starbucks is clearly keen to tempt in extra trade during those less busy evening times and attract a new base of loyal customers. So far, the Howard Schultz turnaround has done no wrong. And when the company reports its first quarter earnings this Thursday, most analysts are predicting a substantial increase from this time last year. Mocha-vodka-tinis all round, perhaps.

Felicity Spector writes on US affairs for Channel 4 News