Friday, August 27, 2010

Starbucks goes upmarket with Seattle exam cafeteria

Lisa Baertlein SEATTLE Sun April 4, 2010 8:03am EDT Related News Starbucks sets initial dividend, to supplement U.S. cafesWed, March twenty-four 2010Brewing tensions in between the Tea Party and GOPThu, March eighteen 2010Restaurants eye sales expansion in dining droughtMon, March 8 2010

SEATTLE (Reuters) - Heavy velvet curtains, indie movie nights, single-origin coffees, booze and beer, appetizing organic pastries and epicurean cheese and beef plates -- this is Starbucks?

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Well, sort of. It"s Roy Street Coffee Tea by Starbucks Corp, the outcome of Chief Executive Howard Schultz directing his store designers to mangle the distinctive nature and set up a area coffee residence from scratch.

The cafeteria is located in Seattle"s heterogeneous Capitol Hill section, home to a colourful happy community, grunge rockers, hipsters and palace dwellers.

It and the likewise irritable 15th Avenue Coffee Tea, additionally in Starbucks" hometown, have been dubbed "idea incubators" by the right away mass-market coffee sequence and work in one of the majority rival cafeteria scenes in the country.

Some association watchers contend the dual cafes vigilance a plan by Starbucks to move the stores behind in to the tip finish of the market, a niche it radically vacated when it went mainstream with the lattes and Frappuccinos -- right away confronting foe from McDonald"s Corp"s even some-more mass-market McCafe drinks.

"The Starbucks code has shifted over time from being a featured item code to being some-more of a mass brand. There is a opening at the tip of the market," pronounced Harvard Business School selling highbrow John Quelch. He combined that not as big rivals similar to Peet"s Coffee Tea and Caribou Coffee Co have seized the event to fill that void.

"Obviously, Starbucks does not wish to concur that tip finish of the code pyramid to those competitors," pronounced Quelch, who did a box investigate of Starbucks in 2006.

The exam format could "re-energize" Starbucks" upmarket interest and capture the kind of following creatively drawn to the pretender code 20-plus years ago, Quelch said.

The association debuted the exam cafes last summer, before long after it denounced the new Starbucks store designs at University Village and 1st Avenue Pike Street in Seattle.

Starbucks" new store designs concentration on appetite assets and "green" construction materials. Like the exam stores, they have an civic industrial cultured that incorporates recycled construction materials trimming from salvaged timber to high propagandize bleachers.

"A vital design of ours was to get behind on the heading corner of sell design," pronounced Arthur Rubinfeld, boss of Starbucks tellurian development. Rubinfeld returned to Starbucks to "reinvent the store experience" before long after Schultz retook the helm of the flagging code in early 2008.

Dan Geiman, an researcher at McAdams Wright Ragen in Seattle, pronounced the new designs have some-more of a concentration on coffee and a "more organic and less cookie-cutter feel".

While Starbucks has done no announcements about the plans for the exam cafes, they already are exporting ideas.

If you are the singular bird at your internal emporium who likes a confidant decoction or a decaf in the afternoon, you might have had a coffee done with the "pour over" method, where prohibited H2O is poured in to a cone filter that drains in to a portion cup. The method, popularized in cutting-edge eccentric cafes, was polished for make use of at majority U.S. and Canada Starbucks" outlets by Roy Street and 15th Avenue staffers.

FULL RANGE OF ADULT BEVERAGES

During a Reuters revisit to the Roy Street cafeteria one stormy work day afternoon, business ran the progression from toddler-toting moms to freelance workers and retirees.

Among them were University of Washington connoisseur students Nadine Maestas and Deborah Kimmey, who came for the ambience, the coffee and the alcohol.

"It"s a most softened ambience over alternative versions of Starbucks," Maestas pronounced of the decor, that is punctuated by locally crafted metalwork, reclaimed timber counters, industrial fixtures and richly upholstered chairs.

During their visit, they systematic coffee, drink and wine.

"We go by the total routine of drinks," joked Kimmey.

CEO Schultz took the impulse for Starbucks from Italy"s cafes, that suggest espresso-based drinks and alcoholic beverages trimming from drink to booze to grappa. Starbucks has never embraced ethanol sales in the U.S. or abroad -- but it has tested sales of such "adult beverages".

In 2000, Starbucks offering drink and booze in 3 exam "Cafe Starbucks" outlets in Seattle, that served breakfast, lunch and dinner. It additionally sole those alcoholic drinks in dual "Circadia" soup, salad and sandwich shops located in San Francisco and Seattle. Those judgment stores in the future closed, and a little locations were incited in to Starbucks stores.

Beyond that, Starbucks has conducted limited-time tests of drink and booze sales in Japan and Spain.

The Roy Street and 15th Avenue cafes debuts regenerated conjecture that Starbucks could one day sell drink and booze at the 16,000-plus tellurian cafes.

But, so far, the answer to that subject is no.

"We have no plans at this time to suggest these beverages in alternative locations," a Starbucks mouthpiece said.

(Reporting by Lisa Baertlein; Editing by John Picinich)

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