Fast Food Frenzy for Wine and Beer — Starbucks and Beyond

While American bars, nightclubs and lounges essentially did little more than perhaps buy a second large screen TV or repaint the restroom, Starbucks waded carefully into their Evenings concept and now, just half a decade out, they are poised to become the Walmart, Home Depot and…uh, well, Starbucks, of the wine and craft beer set. 

Even as some industry analysts questioned whether Americans were interested in buying adult beverages at the same place they get their morning cappuccino, Starbucks already had checked out every angle. Even though their alleged “experts” in wine and beer are either unnamed or have no real credentials, their concept is so overwhelming that no one questions or even cares about authenticity or credibility. Company officials said they even considered the concerns of their skeptical devotees who worried their beloved coffee shops would transform into bars. Perception changes by the hour; you envision Starbucks by what you come in to purchase. Overall, they are setting up Evenings apart from the typical coffee house, or bar, or restaurant. It is a unique hybrid that captures the essence of all three by being “none of the above.”

Most see this as brand new, but it actually has been growing for five years. They quietly experimented with the concept before that. As a result of examining every detail to the nth degree, the company said it is confident that this is the future. In the months ahead, patrons of the coffee chain will see Evenings pop up nearly everywhere as Starbucks introduces the concept in more than 2,000 of its more than 12,000 U.S. stores. It will eventually top out at 3,000. 

When Starbucks launched Evenings, internal data showed about 70% of Starbucks patrons also drink wine. About 31% of Americans who drink alcohol say they prefer wine, according to a 2014 Gallup survey. As the pilot stores rolled out, Starbucks officials were surprised at times by the level of high interest and how patrons were using the program.

One surprise is how the program is a sure winner with women. Women view Starbucks as a safer and more inviting option to meet friends during evening hours than a bar. Yes, it drew  women. They are accounting for 60% of Evenings patrons, according to the company. No just individual women or a small coffee klatch. Pilot stores found serving wine helped the stores attract book clubs, knitting circles and even Bible study groups that would have otherwise taken place at someone’s house, now come to the roomier and more open restaurant. Managers at the pilots have also noted that the wine and beer menu has drawn a surprising number of online daters meeting for the first time. Bars, lounges and nightclubs could never compete for such a diverse set of women gathering in groups. 

Ready for another surprise? The push by quick service restaurants into alcohol sales isn’t new. Burger King…YES BURGER KING launched the BK Whopper Bar concept more than five years ago, opening several locations where patrons could buy a bottle of beer to wash down their burger. Even Sonic burgers has tested beer and wine sales to patrons eating at the fast food chains patio at some locations. And…wait for it…Taco Bell recently announced plans to test spiked freezes, beer and wine at locations in Chicago and San Francisco. 

It is the end of the line for bars in America?!?

None of those restaurants have gone beyond selling booze at a few locations…but just wait. Everyone is actually waiting and watching the other guys to see how their concepts take traction.

“There’s consumer demand, but we’ll see how it goes for us,” Taco Bell CEO Brian Niccol told USA TODAY of his chain's soon-to-be launched experiment. “I am very interested to see how it goes for Starbucks. For us, it’s got to be something that goes great with our food.”

Who reflects who? Starbucks claims its Evenings concepts reflects the communities it serves with local craft beers and wines it carefully selects for the local populace. However, in many communities, the various shopping centers or areas where Starbucks alights, often redesigns itself to more approximate or imitate the new gorilla in their midst.

As the Evenings program expands the company’s designers are also paying an increased attention on the types of seating in the store. In other words, it changes as the day and evening changes! 

Claudia Woods, the senior store designer for Starbucks explains: “It’s becoming really important for us to have different types of seating that can be used by our customers throughout the day. As it becomes evening, the lounge seating is more important, and I think having areas for larger groups. We always make sure we have community tables where people can sit together and have a glass of wine and have a conversation.”

The one real oddity is that Starbucks tapped the expertise of its coffee quality team to evaluate more than 500 wines, (what makes a coffee expert a wine authority?) The group winnowed the list down to 10 wines that they determined would suit their customers.

Customers, who are served by baristas, said they wanted to continue to pick up their drinks at the counter in the same way they pick up their coffee drinks. To help avoid spills, the company decided to go with stemless glassware. The baristas also fill a ramekin with salt and cayenne dusted pepitas that fits over the lip of the wine glass – a small touch that Antalek said they hope will help make the Evenings experience memorable.

With both the wine and beer options, Starbucks says it will try to stay local – in Oregon the menu includes wine from the Willamette Valley, the soon-to-launched program in Brooklyn will sell beers from the nearby Brooklyn Brewery, and Chicago’s menu includes beer from the city’s Goose Island brewery.

 It is a brave new world out there. 

Find out more about it all and how to not only cope, but to thrive in this new environment. 

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