Earlier this week, CSNews.com reported that at least three remodeled Seattle-area Starbucks stores will bear the name of their neighborhoods rather than that of the 16,000-store chain to which they belong. One of the stores, now named 15th Avenue Coffee & Tea, is being remodeled in a new rustic, eco-friendly style, and most significantly, will not have the Starbucks logo or name on the store. Subsequent reports noted that the stores also plan to sell beer and wine, new additions to the typical Starbucks product mix.
Now, I know Starbucks has been struggling lately and that its upscale image doesn’t resonate with thrifty consumers in these difficult economic times. I can also understand the attempt to trying to get closer to local neighborhoods. However, I think taking the well-known brand name off the store front is a big mistake. It is very difficult for a retailer to launch a new brand. Even Walmart added its name back to its Marketside small store format after initially opening with no mention of the parent company’s name or logo. So I think we’ll eventually see “15th Avenue Coffee & Tea, by Starbucks.”
On the other hand, convenience store retailers should watch carefully if the Seattle-based company starts to add beer and wine to all its stores. My guess here is that the customer bases of the retailers are too different to impact c-stores’ alcoholic beverage business too badly. After, coffee sales continue to grow at c-stores despite the attempted incursions of Starbucks, Dunkin Donuts, Tim Hortons and McDonald’s.
-- Don Longo
that's my point, why change the name?
Posted by: Don | August 06, 2009 at 12:14 PM
i love starbucks
Posted by: business for sale | August 04, 2009 at 11:08 AM