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	<title>Brandthony &#187; seattle</title>
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		<title>Why Starbucks&#8217; Alcohol Cafe Experiment Won&#8217;t Work</title>
		<link>http://brandthony.com/2009/07/why-starbucks-alcohol-cafe-experiment-is-foolish/</link>
		<comments>http://brandthony.com/2009/07/why-starbucks-alcohol-cafe-experiment-is-foolish/#comments</comments>
		<pubDate>Tue, 21 Jul 2009 04:17:26 +0000</pubDate>
		<dc:creator>Anthony Perez</dc:creator>
				<category><![CDATA[Strategic Miscues]]></category>
		<category><![CDATA[coffee]]></category>
		<category><![CDATA[entertainment]]></category>
		<category><![CDATA[marketing]]></category>
		<category><![CDATA[nightlife]]></category>
		<category><![CDATA[seattle]]></category>
		<category><![CDATA[starbucks]]></category>

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		<description><![CDATA[


			
				
			
		

As everyone has heard by now, Starbucks is launching new offshoot cafes under the &#8220;Inspired by Starbucks&#8221; brand in an attempt to grab some of the nightlife market. The new cafes will add alcohol to the menu, and Starbucks hopes customers will sit back and relax after a long day of work to listen to [...]]]></description>
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<p><span style="font-weight: normal; font-size: 22px;">As everyone has heard by now, <a href="http://adage.com/article?article_id=138008">Starbucks is launching</a></span><a href="http://adage.com/article?article_id=138008"> new offshoot cafes</a> under the &#8220;Inspired by Starbucks&#8221; brand in an attempt to grab some of the nightlife market. The new cafes will add alcohol to the menu, and Starbucks hopes customers will sit back and relax after a long day of work to listen to some live music and socialize with nearby cuties. It&#8217;s an interesting brainchild of Starbucks&#8217; senior project manager, Major Cohen, but <strong>there are many reasons for Starbucks to prepare for disappointment.</strong></p>
<p>With the <a href="http://www.huffingtonpost.com/2009/07/02/unemployment-rate-hits-95_n_224640.html">national unemployment rate at 9.5%</a> (myself included), it would be an obvious understatement to say this is the wrong time for Starbucks to be experimenting with a new chain of cafes. According to a story by the LA Times, 40 percent of bar owners <a href="http://www.redorbit.com/news/general/1620967/bar_owners_say_recession_hurting_sales/">are reporting down sales</a>. And a quick visit to the <a href="http://www.nightclub-business.com/forum/forumdisplay.php?f=3">message boards</a> at Nightlife &amp; Bar Magazine leads to many threads about the <a href="http://www.nightclub-business.com/forum/showthread.php?t=7662">recession hurting</a> business for many owners. Example:</p>
<blockquote><p><span style="font-weight: normal; font-size: 35px;"><strong>&#8220;</strong></span>I have a pub in a city that has over 15 colleges in the county. I am slow and most of the other bars and clubs are also. One large club just closed a month ago. Scary.</p></blockquote>
<p>Even though Starbucks is only experimenting with one location, <strong>it&#8217;s risky to guage the viability of a new business unit during a time when no industry is experiencing growth.</strong> People are cutting corners all over the place, and even if they try the new &#8220;Inspired by Starbucks&#8221; cafe once, they probably won&#8217;t visit continually since they&#8217;ll perceive it as a novelty not worthy of their limited disposable income.</p>
<p>Additionally, the nightlife industry is fickle. Customers like to visit new and different places in order to unwind. And while I may be thinking too deeply about it, Starbucks is normally associated with a pre-work ritual for most. While it&#8217;s true that a lot of people sit in Starbucks, sip coffee, and chat, it&#8217;s the first stop in the morning before heading into the office for the vast majority of their customers.</p>
<p>Is it possible that for the new cafe&#8217;s target market (basically, professionals who still have jobs), Starbucks may be more associated with work rather than relaxation? <strong>If I use Starbucks to gear up in the morning, I&#8217;m not sure if I&#8217;m using it to unwind at night.</strong></p>
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