Written by Kimberly Wynn    Monday, 12 October 2009 02:38    PDF Print E-mail
Barbucks: Starbucks’ transformation to European caf?
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Starbucks, the Goliath of coffee corporations, has felt tremendous pressure recently in the United States from rival companies McDonalds and Dunken Donuts. Since many Americans have felt the impact of the economic crisis, they have been inclined to purchase their coffee drinks from the cheaper establishments.

The increase in American consumption of lower priced coffee drinks has leveled the playing field. But the masterminds at Starbucks have developed a new game plan that includes serving alcohol to increase profit margins.

According to New York Times journalist Brad Stone, the executives at Starbucks are going back to their roots by re-hiring chief executive Howard D. Shultz. Shultz founded the Starbucks empire. In 1971, he and the also re-hired Arthur Rubinfeld, president of global development opened the first Starbucks store in Pike’s Place Market in Seattle, Wash.

This year Starbucks introduced a European inspired caf? called the 15th Ave Coffee and Tea on Capitol Hill in Seattle. The caf? does not display the signature Starbucks symbol normally featured above the entrance. However, Starbucks whole bean coffee and Tazo tea will be served.

According to a press release from Starbucks, the development of 15th Ave Coffee and Tea is an attempt to increase evening business by serving alcohol.

“This coffeehouse design is reminiscent of a European mercantile and draws inspiration from the original Starbucks location opened in Seattle’s Pike Place Market 38 years ago.  It’s eclectic and raw, featuring locally sourced and reused materials that are one-of-a-kind,” said the press release.

At caf?s in other parts of the world, including Russia, a full bar is usually present containing hard alcohol, wines, and beers. 15th Ave Coffee and Tea will not carry hard alcohol, but will serve wine and beer, according to USA Today.

Starbucks may continue this growth of Europeanized style cafes if there is a strong response from consumers.

Last Updated ( Saturday, 17 October 2009 15:31 )
 

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