Starbucks plans to sell alcohol at night

CHICAGO — Starbucks is going big on booze.

Starbucks will expand its evening alcohol and light bites menu, which includes bacon-wrapped dates and Malbec wine, to thousands of stores, Chief Operating Officer Troy Alstead said. The rollout, which can help boost sales, will take several years, he said.

“We’ve tested it long enough in enough markets. This is a program that works,” he said. “As we bring the evening program to stores, there’s a meaningful increase in sales during that time of the day.”

Starbucks has been focused on selling more non-coffee items, such as alcohol, juice, Teavana tea and food, to stoke U.S. growth. The company also is expanding and improving its rewards program and mobile applications. Earlier this month, Starbucks said it would soon test a way for customers to order items ahead of time with their smartphones.

The company first sold alcohol in October 2010 at a Seattle store. In January 2012, Starbucks said it was expanding the test to as many as 25 locations in Chicago, Atlanta and Southern California. In Chicago, the after-4 p.m. menu includes fare such as truffle macaroni and cheese, chicken skewers, Chardonnay and chocolate fondue.

The evening food and drinks, which are in about 40 stores now, won’t work in all Starbucks cafes, Alstead said. He said they’ve seen success in some urban areas, near other restaurants and theaters, where people are out at night.

Last month, Chief Executive Officer Howard Schultz handed over the company’s day-to-day operations to Alstead, so Schultz could focus more on digital, mobile, loyalty and electronic- commerce initiatives. The company said yesterday in a statement that its mobile-payment application has been gaining traction.

Mobile payment now accounts for 14 percent of in-store transactions in the U.S., up from a 10 percent rate disclosed in July. Starbucks also said it will open at least 20 additional Teavana stores in the current fiscal year.

“Mobile is very important,” said Peter Saleh, a New York-based analyst at Telsey Advisory Group. “The companies that are taking share are the companies that have some mobile, digital platform — Papa John’s, Domino’s, Starbucks, Dunkin’.”

Starbucks’s loyalty program entices diners by offering free beverages, food and refills in return for points they’ve accumulated from purchases. Customers can pay with mobile phones or Starbucks cards that are linked to their account.

As part of its effort to sell more tea, the company will begin offering Oprah Winfrey-branded chai tea on April 29 at stores in the U.S. and Canada, Schultz said at the company’s annual meeting Wednesday. Winfrey, the television personality and entrepreneur, tasted different tea varieties and helped Starbucks create the blend, which includes black and rooibos teas.

“This felt like something that I really loved, that I really cared about,” Winfrey told Schultz at the meeting. Starbucks will donate money from the tea’s sales to charities that support youth education.

Starbucks bought Teavana Holdings last year in a transaction valued at about $626 million. It has since been expanding the brand and plans to open tea bars in Chicago and Los Angeles this fiscal year.

Starbucks has more than 20,100 locations worldwide, including about 11,500 in the U.S.

More in Herald Business Journal

Nordstrom suspends buyout after struggling to get financing

A buyout was meant to help the company continue turnaround efforts outside the glare of market scrutiny.

More self-awareness could help build a better medical system

Marcy Shimada of Edmonds Family Medicine writes the second in a series about fixing our health care system.

Justices to hear government’s email dispute with Microsoft

A lower court ruled emails in a drug case couldn’t be searched because they were in Ireland.

Bombardier to partner with Airbus on C Series program

The move by Bombardier could possibly circumvent duties being imposed on the C Series.

Everett’s Access Laser sells majority stake to German company

Everett firm with 50 employees makes lasers for scientific, medical fields and self-driving vehicles

Innovation Resource Center’s advice for budding inventors

Got the next great idea? The Buildit NOW program stands ready to help you.

Mountain Pacific Bank to host Economic Forum in Everett

Mountain Pacific Bank’s Economic Forum is from 7:30 to 9:30 a.m. Wednesday… Continue reading

Career-community resources fair planned this week at EdCC

Edmonds Community College will host a free fall quarter career fair featuring… Continue reading

Most Read