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Another Lesson From Starbucks

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Makes Great Coffee

Makes Great Coffee

On April 29, 2014 Starbucks CEO Howard Schultz appeared on CNBC in the 10 o’clock hour to discuss a variety of things – mainly that he was listed at #14 on their top 25 most influential business people over the past 25 years. See the list here. 

While he was speaking he talked about their recently announced plan to sell alcohol after 4 P.M. at some of their stores. This is to continue their approach of having a more diversified product line. They have already added non-coffee menu items such as juice and teas and this roll out of alcohol will continue that trend. Diversification and a larger pool of potential customers is always a good idea in my opinion.  During his time on CNBC he mentioned that this alcohol strategy would leverage its fixed assets. I wrote about this idea 2 years ago in my blog Peanut Butter And Jelly And Other Great Combinations.

He is taking an underutilized asset a coffee shop at night – busy but not prime time and adding a reason to go there. What a great way to have 2 stores in one! Based on past experience I believe Starbucks will make this idea work. I am sure it will bring people for alcohol sales but will also bring people not familiar with Starbucks coffee and teas that don’t care to have alcohol. This will be a great introduction for their non-alcohol line of menu items. It sounds like a great cross-selling opportunity.

I doubt I will go to Starbucks for a beer or a glass of wine but who knows? Recently I have been asking my wife after dinner if she would like to get a “nightcap”. When I say this I mean; go to Starbucks for a coffee before we go home to extend the evening. Soon, maybe we will have a nightcap before going home and it will be a glass of wine.

Have a good week thinking of ways to get more from what you already have. Whether getting more means existing customers or fixed assets.

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Written by pacelinebiz

May 19, 2014 at 8:01 am

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