Cashtaggers Cheers $SBUX Alcoholic Beverage Plan
Starbucks, $SBUX, investors are drinking the spiked Kool-Aid. Shares rallied more than a percent after the company’s Chief Operating Officer told Bloomberg that the company plans to sell beer and wine at stores nationwide after 4p.m.
$SBUX Starbucks is rolling out Alcohol in a large number of Starbucks stores !!! Now THAT is News that will increase customer base!
— Dallen Cyrr (@Dallen) Mar. 20 at 04:57 PM
Investors believe letting customers wind down with an alcoholic beverage after being hyped up on caffeine all-day will only increase the brand’s appeal. In addition to alcohol, the company will sell wine and cheese type fare such as fondue.
— illrock (@commonsensegenius) Mar. 21 at 12:18 AM
Starbucks has nipped at the idea for the past four years. It began testing alcohol sales in Seattle back in 2010. It plans to expand the test to Chicago, Atlanta and Southern California. Management told Bloomberg that they have seen a meaningful increase in evening sales when they offer alcoholic beverages.
Some cashtaggers said, perhaps facetiously, that the company shouldn’t stop at alcohol. Marijuana, which is now legal in 20 states but only for medicinal purposes, could really improve sales.
— Rocco Pendola (@r_pendola) Mar. 20 at 06:42 PM
The weed comments address, however obliquely, a salient question: could alcohol drive away some of Starbucks’ customers? Perhaps the coffee-chain’s key clientele of latte-sipping laptop workers won’t want neighboring patrons socializing over glasses of Shiraz.
McDonald’s, $MCD, doesn’t sell alcohol at U.S. locations because it doesn’t want to upset customers who head there for a family friendly experience. Certainly Starbucks’ with its pink birthday cakepops, caters to the family set too.
Still, cashtaggers weren’t concerned that Starbuck’s expanding alcohol sales would alienate tired parents with toddlers in tow ordering triple espressos at sundown. The chain, they argued, can strategically roll out alcoholic beverages to stores most likely to have demand. Sentiment on the stock was 81% bullish.
Moreover, if it still doesn’t work, Howard Schultz can always go on Oprah and offer her a glass of red. It’s done wonders for tea sales, say cashtaggers.
$SBUX Howard Schultz is brilliant, great CEO. Tea is a great move, lotz of potential. Oprah & Tea, that works! Long SBUX. More growth ahead
— maggie chau (@maggiechau) Mar. 19 at 08:29 PM
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