Could Starbucks be your local?

Starbucks Bars?

The war over breakfast may be raging but Starbucks are planning on duking it out on two fronts as they attempt to exploit their brand identity in order to grab a slice of the ‘evening’ market.

Many people start their day being lured into purchasing a coffee by the green siren and now she will be calling as the sun begins to set, attracting patrons towards Starbucks outlets.

The famous chain has already been selling alcohol and their light bites menu in a small number of stores in strategic locations across America. Seattle, unsurprisingly, was the city that led the way and then, a couple of years later, outlets in Chicago, Southern California and Atlanta followed suit bring the total to around twenty-five stores trialling this initiative.

It would appear that the figures have been checked and there is both the profit, and demand, to make this bold foray and take on new rivals.

Shares rose nearly 1.5% in New York on the back of this announcement from the Seattle-based giant.

Their evening menus contained such fare as truffle macaroni and cheese, chicken skewers and chocolate fondue.

This venture comes at a time when most competing businesses are branching out into the morning rush in order to expand and grow profit margins. Not simply a drink of choice, coffee has its own subculture and, when commuters are rushing to work; it is a highly lucrative battleground that is playing host to a number of big businesses all wanting to reap its financial spoils.

Especially in America, Starbucks has been challenging with traditional competitors such as Dunkin’ Donuts, Caribou and Tim Hortons, but recently fast food chains like McDonald’s have been adapting their strategy and have consequently come into direct competition with the established coffee chains.

Whilst Starbucks are still firmly entrenched on that front line, they are aiming to push forwards, slowly at first, to claim ground as the day winds down.

After all, from a business standpoint the move does make sense. Custom tends to drop off after the morning rush and whilst there may be a steady stream of trade through the rest of the afternoon before drying up entirely. There may be a brief spike as people head home from the office, but it is the breakfast rush that is the most lucrative. By expanding what they offer – and potentially redefining the coffee house altogether – Starbucks can increase their takings and footfall without massively increasing their overheads.

The new menu items will only be available in the United States, there is no word when – or if – Starbucks in other markets will follow suit.

Two questions need to be answered regarding this move: Can Starbucks successfully fight on two fronts, and; will customers on a wide-scale embrace this move?

 

photo: nayee* (Flickr) - used under Creative Commons

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