In the search for increasing profits a number of fast food restaurants venturing away from their tried and true business models and testing the uncharted waters of breakfast; Subway, Wendy’s Co. and YUM brand’s Taco Bell are just a few. In a similar venture at a select few locations, Starbucks is looking to add alcoholic beverages and a larger menu to match which would include light, appetizer style fare. If successful, the coffee chain could be looking at a large increase in sales with little additional overhead costs. Considering the frequency locations are used to conduct business, the addition of a happy hour could prove a big boost to the chain’s stock price. SBUX is down almost 2% on the day and trading at 47.34, just off it’s 52 week high.
Reuter’s comments can be viewed here: Starbucks to sell beer, wine in Atlanta, So. Calif | Reuters.
Couldn’t this have a negative impact on Starbucks image? Not everyone wants to see their local coffee shop turn into a bar. Although I agree that it does add an interesting angle with a lot of potential profit without adding much overhead.