Starbucks tests new concept store with beer and wine

As experiments go, this one isn’t flashy. But the success–or failure–of one Starbucks cafe on the edge of a trendy Seattle neighbourhood could ripple through the nation’s coffee house industry. Because where Starbucks goes, others follow. Dubbed “Olive Way,” the store is the biggest percolator yet for ideas that the world’s largest coffee company has […]

As experiments go, this one isn’t flashy.

But the success–or failure–of one Starbucks cafe on the edge of a trendy Seattle neighbourhood could ripple through the nation’s coffee house industry. Because where Starbucks goes, others follow.

Dubbed “Olive Way,” the store is the biggest percolator yet for ideas that the world’s largest coffee company has been testing separately at nearly a dozen locations around the globe. And what succeeds at Olive Way will most likely be spread to other Starbucks stores around the U.S.

With muted, earthy colours, an indoor-outdoor fireplace, cushy chairs, and a menu with wine from the Pacific Northwest’s vineyards and beer from local craft brewers, this 2,500-square-foot shop will reopen in the fall.

“It’s going to feel very different,” said Kris Engskov, Starbucks’ regional vice-president.

The machines at Olive Way will be part of what executives call a coffee theatre. Counters will be narrower–a slim as a foot in some places–to bring customers closer to baristas; the machines will brew one cup at a time to extract deeper flavour from beans.

The store will be the chain’s only location that sells beer and wine in the U.S. The menu at Olive Way will be bigger, full of savory foods that pair with coffee, wine and beer. And customers will be able to customize the offerings, some of which will be freshly made.

The company wouldn’t say how much it’s spending on the effort, or how soon elements from the shop might expand to other locations.

But executives are optimistic that some will find their way to other locations, especially in vibrant urban neighbourhoods where the chain can attract affluent customers who may prefer a low-key hangout over a crowded bar.

The pilot shows how hard Starbucks is working reinvigorate its brand, which stumbled under the weight of hyper-paced over-expansion. The chain closed hundreds of stores and cut scores of jobs, and founder Howard Schultz returned to help the company re-emerge.

Starbucks plans more measured growth and is working to relax its corporatized image by returning to its days as a place where people want to linger for hours sipping coffee. It plans to offer free, unlimited Wi-Fi in all company-run stores; it’s letting customers tailor drinks even more, and it’s opening stores with more community flavour. A Seattle shop uses an old bleacher from a nearby high school for shelving, and a New York City store’s floors and counters are made of wood reclaimed from a century-old Pennsylvania barn.

All the changes are part of an appeal for more afterwork customers at a chain that gets the bulk of its in-store business before 11 a.m.

Brands Articles

30 Under 30 is back with a new name, new outlook

No more age limit! The New Establishment brings 30 Under 30 in a new direction, starting with media professionals.

Diageo’s ‘Crown on the House’ brings tasting home

After Johnnie Walker success, Crown Royal gets in-home mentorship

Survey says Starbucks has best holiday cup

Consumers take sides on another front of Canada's coffee war

KitchenAid embraces social for breast cancer campaign

Annual charitable campaign taps influencers and the social web for the first time

Heart & Stroke proclaims a big change

New campaign unveils first brand renovation in 60 years

Best Buy makes you feel like a kid again

The Union-built holiday campaign drops the product shots

Volkswagen bets on tech in crisis recovery

Execs want battery-powered cars, ride-sharing to 'fundamentally change' automaker

Simple strategies for analytics success

Heeding the 80-20 rule, metrics that matter and changing customer behaviors

Why IKEA is playing it up downstairs

Inside the retailer's Market Hall strategy to make more Canadians fans of its designs