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Thursday, March 20, 2014

Starbucks Moves Forward With Alcohol Sales

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Starbucks announced that it will move forward with alcohol sales, potentially bringing booze to thousands of stores around the country. Since 2010, Starbucks has been experimenting with alcohol in urban areas like: Seattle, Chicago, Atlanta and Southern California, according to Bloomberg News.

“We’ve tested it long enough in enough markets - this is a program that works,” said Starbucks Chief Operating Officer Troy Alstead. “As we bring the evening program to stores, there’s a meaningful increase in sales during that time of the day.”

It is no secret that there is large revenue streams associated with the sale of alcohol, so it's no surprise that the world's largest coffee chain wants a piece of the pie. It doesn’t hurt that the majority of Starbucks customers are teenagers and young adults, those most likely to be thrilled that they can find alcohol alongside their lattes.

With about 40 locations currently selling alcohol, over the next few years we can expect to see a large expansion to the program. Starbucks hopes to double their market share through the sale of alcohol and other more sophisticated late night snacks.

One concern associated with Starbucks selling alcohol is the fact that most people who shop at the chain are usually planning to go somewhere else afterwards. It seems that there will be a large potential for people driving away from Starbucks under the influence of alcohol with a caffeine buzz.
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