Starbucks' gamble on beer and wine: Will it work?

In an effort to keep up with the times, the 40-year-old coffee giant may be turning to booze

The "highly recognizable brand" tests the alcoholic waters with a wine-bar coffee house.
(Image credit: CC BY: Andrea)

Last week, Starbucks announced it was ordering baristas to slow down to boost the quality of its brews in the face of consumer complaints. Up next: Starbucks executives are testing a revamped and redesigned marketing approach at one Seattle location. The test store — designed to generate more business after 2 p.m. — serves beer, wine, and gourmet delicacies from a local chef in a stylishly distressed, environmentally responsible building more evocative of a favorite local haunt than a chain outlet. If customers respond, Starbucks plans to expand the approach to other locations. Do java fans want booze options? (Watch a CBS report about Starbucks's new venture)

It's a huge risk: This is a "serious gamble for a chain that's spent four decades and billions of dollars establishing a highly recognized brand," says Bruce Horovitz in USA Today. With its muted colors and dim lighting, the new Starbucks-cum-neighborhood-bar isn't instantly recognizable, and the new design "doesn't come cheap." While this could be a big step forward for the brand, it's worth noting that "some skeptics say Starbucks is too familiar to be hip."

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