Starbucks expands business model, but pushes out younger demographics

As an accessible chain that serves a variety of caffeinated drinks, Starbucks takes the cake as the most popular semi-fast food cafe in the United States, which also places it in the spotlight of attention for any changes or problems. One of these changes is that Starbucks has been serving alcoholic drinks and related menu changes to 70 locations nationwide as of Aug. 18 of last year. This change in menu does not in any way affect me as a potential stakeholder in the company; however, I can see why the company would choose to take this direction. The real question is why now? Even if I did partake in the now-traditional pilgrimage to Starbucks each morning and afternoon, said menu change would continue to not affect me, seeing as I am about 5 years under the legal drinking age. Unfortunately for most teachers and those reading, this legal age limit cannot protect you nor me from the cold business analytics I’m going to present.

As a business and marketing strategy, Starbucks Evenings seems pretty logical. In adding nighttime drinks to their menus, Starbucks can now compete with smaller bars and venues for customers as well as diversify into more of a sit-down location. In addition to these non-coffee beverages, Starbucks has also upgraded to serving meals that fit the evening mood such as truffle mac & cheese, chicken skewers, artichoke & goat cheese flatbread, meatballs with tomato basil sauce, bacon-wrapped dates, a cheese plate and truffle popcorn. Unfortunately, according to the Starbucks website, the closest chain with ‘Evening’ open as of now is in Dulles Airport.

As a company, Starbucks uses a business model that revolves around the successes of a “testing lab” in their hometown, Seattle. The original Starbucks opened in 1971 on 2000 Western Avenue, which then moved to Pike Place in the Pike Place Market. Located nearby is the company’s Reserve Roastery and Tasting Room, a coffee shop designed to serve as a permanent experiment location. Starbucks as a firm is famous (or in few’s eyes, notorious) for opening and operating experimental ‘Stealth Starbucks,’ which are Starbucks-owned locations under different names. Another change made as of last year is Starbucks added express stores with fewer food/drink options but with much faster processing speed for customers in a rush.

What brings about this change? Taken from an interview with Rachel Antalek, the company’s sommelier and vice president of innovations: “We learned resoundingly that our customers want to come to Starbucks and have a glass of wine or a craft beer.” Customer reviews proved that the wine and beer selection was decent, not to mention expensive. Unfortunately, most of their food options such as the chicken skewers, truffle mac and cheese, veggie platter, both types of pizza, and meatballs received terrible reviews, which seems logical considering a waiter is reported to confirm that they are “frozen and then reheated in an oven” before served. As an evening venue, Starbucks completely underwhelmed: perhaps they should just stick to what they are good at.