Happy Hour coming to Starbucks

"The test is over," says Starbucks (SBUX +0.3%) CEO Howard Schultz, telling CNBC the company is plowing ahead with offering alcohol in its stores.

In other news from the conversation:

Fizzio is a key focus of his (SODA -2.9% in early action).

While raw coffee prices are up 80%, they're just 10% of Starbucks' operating cost, and "If push came to shove, we have pricing power."

Schultz gets a chuckle out of competitors who blame the severe winter weather for weak results.

Last night's earnings coverage

From other sites
Comments (13)
  • WaveRider007
    , contributor
    Comments (650) | Send Message
    Starbucks must be running out of easy money. Here comes the "Four Loco" gravy train. Booze people up and then send them out caffeinated trying to cover it up. What a brilliant way to improve the already hip Starbucks locations. If this happens, get ready for higher insurance premiums from all the highly caffeinated drunks running amuck. So will Baristas need to know how to mix and brew? Then they can go for the trifecta and open locations in Colorado that also sell medical marijuana marijuana right next to the coffee and alcohol. Wonder if there will ever be any free tables at Starbucks?
    25 Apr 2014, 10:21 AM Reply Like
  • The Count of Cristo
    , contributor
    Comments (316) | Send Message
    I'll get coffee with rum.
    25 Apr 2014, 10:23 AM Reply Like
  • Moon Kil Woong
    , contributor
    Comments (13623) | Send Message
    Irish coffee anyone? Will they put up TV screens to watch sports? I can just imagine drunken sports revelers mixed with old ladies crooning about their macramé and moms gossiping about their kids and husbands.


    I agree, Starbucks is sinking to a new low. Next thing you know they will be selling prescription drugs and pot brownies.
    25 Apr 2014, 10:42 AM Reply Like
  • WarrenBuffett#2
    , contributor
    Comments (14) | Send Message
    This is such a revolutionary move by Starbucks. They are such a strong brand just with coffee, but think of the waves of new people they'll attract offering select alcohol after a certain time. Starbucks can instantaneously transform itself into a nighttime wine bar along with a select amount of brewed beers. You can get traditional Irish coffee as well. Starbucks isn't going to be a crazy bar scene. Howard schultz is far too smart for that. Instead they're going to have DD and their competitors trying to figure out a way to fight back. Only revolutionaries take risks like these. Risk brews reward. Fantastic.
    25 Apr 2014, 10:44 AM Reply Like
    , contributor
    Comments (5172) | Send Message
    Hey Schultz,
    As NIKE says...


    "just do it !".


    Let's get this stock moving.
    25 Apr 2014, 11:12 AM Reply Like
  • AnAvgJoe
    , contributor
    Comments (565) | Send Message
    I think it will get moving, especially if Teavana gets cranked up. Not sure how I feel about the alcohol initiative, though. I think it will be profitable for SBUX in terms of dollars, but there could be some rough patches if drunkenness leads to some unfortunate events and the bad PR that might accompany them. I suppose we'll see.
    25 Apr 2014, 01:21 PM Reply Like
  • nedilwo
    , contributor
    Comments (70) | Send Message
    One can make an absurd extension to the strategy, or see the potential of targeting the right audience. Aparitif, after-dinner drink, and dessert anyone? Sports bars "are not an option."
    25 Apr 2014, 01:15 PM Reply Like
  • WaveRider007
    , contributor
    Comments (650) | Send Message
    The most important point is that revenue is falling short and they need more money with their real estate investments (most of which are in researched affluent socioeconomic areas). As mentioned, DD can make 24/7 use of their space, would Starbucks? Will they lower a disco ball when drinks are served? Will there be music allowed? Would they have seperate areas for booze and coffee? How expensive would the alcholic drinks be, if their coffee is so expensive.
    25 Apr 2014, 04:40 PM Reply Like
  • WaveRider007
    , contributor
    Comments (650) | Send Message
    People cant just walk into the street in most areas with open alcohol and there is no space at their locations already with the homeless and internet squatters sitting at every table. Sounds like a desperate statement to bring attention that they can change.
    25 Apr 2014, 04:42 PM Reply Like
  • WHY NOT?
    , contributor
    Comments (10) | Send Message
    I am a Ph.D. psychologist. I imagine all the negative comments you are receiving must be from people who probably do not go abroad or lack information about the rest of the world where McDonalds serves beer and wine all over. People have been drinking wine all over the world for centuries and they were not drunkards. and regarding the comments about getting big screens to watch sports that can only be said by... well you decide the word to use for such a limited view of most other societies. Stabucks was started by an American who wanted to bring the atmosphere of a coffee places in Italy and all over Europe.
    What is wrong with those who think that drinking wine is a sin? Most people who drink it do not become alcoholic.
    Shame, shame... how simplistic some people are on the USA of 2014.


    25 Apr 2014, 07:53 PM Reply Like
  • WaveRider007
    , contributor
    Comments (650) | Send Message
    "bring the atmosphere of a coffee places in Italy and all over Europe."


    Being at Starbucks has not remotely reminded me of European cafe's whatsoever in the slightest bit. What about table service? Starbucks is for a strong caffeine or snack fix. When was the last time you hung out with friends at Starbucks on a Friday evening? (and....was able to get a table?).
    4 May 2014, 10:21 AM Reply Like
  • jpmj4847
    , contributor
    Comments (572) | Send Message
    ...video poker man comes with what license??? Yes, beer & wine. jp
    25 Apr 2014, 09:53 PM Reply Like
  • rus231
    , contributor
    Comment (1) | Send Message
    Just add chicken wings , hamburgers and French fries -Transformation is completed.
    28 Apr 2014, 02:30 PM Reply Like
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