Starbucks tries something new: Being something besides Starbucks

July 17, 2009 – 10:29 am – No Comment

Starbucks said yesterday that it would be renaming one of its Seattle stores and adding alcohol and a hipster atmosphere to the store. The store will be known as 15th Avenue Coffee and Tea and will open next week. The “new” store will offer wine and beer along with the usual Starbucks coffee (and teas).

Once this tester store opens, the company said that it would like to open two more Seattle area stores “without” the Starbucks name where there isn’t currently a Starbucks location. Representatives for the company also said that opening similar stores in other cities isn’t out of the question if these stores are a success.

“It’s interesting,” said Morningstar analyst R.J. Hottovy, “especially since the Starbucks brand has been such an integral part of their success.”

Hottovy said he thinks the Starbucks brand still “resonates” with those who drink coffee regularly. But, he added, with the recession now in its second year, the brand may be struggling more because it is considered “premium,” and therefore expensive, by consumers.

Over the past few months, Starbucks hasn’t exactly been able to keep it’s sales at a steady growth rate because in the recession, customers try to cut out things that they consider unnecessary…and a $4 cup of coffee is unnecessary on many budgets. Of course, growth isn’t helped any by the advertising campaign launched by McDonald’s and its line of McCafe drinks.

Perhaps Starbucks is trying to reach a new type of consumer. If Starbucks is trying to reach a new customer base, it is likely trying to reach the kinds of consumers that will feel so insulted that they’ve been “tricked” by “the man” that they will never come back or bring back their hipster friends. No, I’m just kidding. It’s trying to target those consumers that enjoy local, live music.