I worry every time I see a company with a strong market niche attempt to reinvent itself in hopes of finding a new avenue of growth, knowing all too frequently it loses its way altogether. (Remember your motorcycle fiasco, Cannondale?) Will Starbucks' (NASDAQ: SBUX) new pilot cafe, which will offer beer, wine, and entertainment, bring it new success or divert its attention from its core business?
The test-of-concept cafe to open next week in Seattle is named the 15th Avenue Coffee and Tea. Obviously, in addition to alcoholic beverages the cafe will offer caffeine in its many forms. However, according to CNN Money, the Starbucks name will not appear on coffee and tea products.
The cafe is housed in a converted Starbucks location that was slated for closure, in a neighborhood of coffee houses with similar offerings. The company plans to open two more locations in the Seattle area in the near future.
At least SBUX didn't try to respond to McDonald's (NYSE: MCD) raid on its coffee business by launching its own line of hamburger joints.
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