Starbucks Doubles Down on Selling Beer, Wine and More Food
Starbucks says it has a five-year plan to double its U.S. food revenue to more than $4 billion through the menu expansion, as Fortune reports. It expects the new evening menus, with wine and beer, to bring in an additional $1 billion next year.
The company has been experimenting with the concept in Atlanta; Chicago; Los Angeles; Portland, Oregon; and its hometown of Seattle, as the Starbucks Evenings Menu webpage indicates. The new food includes truffle macaroni and cheese, Parmesan crusted chicken skewers, bacon-wrapped dates with balsamic glaze, artichoke and goat cheese flatbread, and chocolate espresso, champagne, and raspberry truffles.
Wines include a variety of sparkling, red, white, and rose choices. Beer selections change, so customers have had to ask the baristas for the current selection.
Although perhaps less flashy, the new mobile app and coffee truck and delivery plans are just as important. One of the difficult limitations Starbucks faces is lines in the stores. If there's too long a wait, customers in a hurry might go elsewhere. Advanced mobile ordering would help the stores anticipate customers and have their morning cups available immediately when they walked in. Delivery and coffee trucks would let the company go out to customers, increasing convenience.
The announcements came at a good time for the company. Starbucks had a recent stock price low in October and critics have been concerned about expensive valuation of the company, according to Bezinga.com. Those who are bullish on Starbucks have focused on its growth opportunities, as CNNMoney indicated.
Starbucks (SBUX) stock was up about 1 percent after the announcement of the new menus and initiatives.