15th Avenue Coffee and Tea....STARBUCKS trying even harder now!!!

Discussion in 'Wall St. News' started by S2007S, Jul 19, 2009.

  1. S2007S


    Looks like starbucks is looking to change some stores to start offering wine and beer. I guess the breakfast and lunch specials hasnt done much for their bottom line so branching out to wine and beer is the definite answer, hahaha. I guess they are trying about anything right now to stay in the game, trying to hard might is the problem. starbucks has lost all its reputation in the last few years and with the deep recession occurring in the US no one wants to spend $5 for a coffee. I highly doubt this ever becomes successful I think its a real waste of time, who wants to go into starbucks to buy wine or beer. The concept is a waste of time and they will soon realize this of course well after the fact that its not working.

    Starbucks experiments with wine, beer
    The Associated Press
    Posted: 07/17/2009 01:00:00 AM MDT
    Updated: 07/17/2009 01:23:13 AM MDT

    NEW YORK — Starbucks said Thursday it is wiping its name from one of its Seattle-area stores and adding alcohol to the menu. The Seattle-based coffee chain said it is changing the name of one of its existing stores in its hometown to a name that reflects the neighborhood location.

    The store, to be called 15th Avenue Coffee and Tea, will open next week and also serve wine and beer. Two more Seattle-area stores are to follow.

    The chain said if the rethought coffee shop is a success, it will consider replicating it in other cities.

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

    But, Hottovy said, the brand is considered "premium," and therefore expensive, by consumers in a tight economy.
  2. 1) During bull marrkets, people drink caffeinated/stimulating beverages, i.e. coffee, cola and energy drinks.
    2) During bear markets, people drink non-caffeinated/relaxing beverages, i.e. tea and booze. The timing is "right" for this.
    3) This concept has decent potential as a means of "hedging" Starbucks's coffee locations and if the liquor licensing can be obtained.
    4) It'll be even more interesting in larger cities where you have Starbucks shops located across the street from each other where one of the two could be converted to a "tea" shop and possibly draw more customers than the coffee shop.
    5) The company should be able to get good pricing on Bailey's and Kahlua. :cool:
  3. Arnie


    This is the kind of desperate move that shows they have lost it. Short 'em!
  4. Are you sure this is not a story from TheOnion.com, a sattire news site?? :confused:
  5. It's possible they are trying to generate some revenue for the closed stores that they are unable to lease.