Dan Cox is Interviewed by The Voice of Russia Radio
Dan Cox was interviewed by Lauren Murphy of The Voice of Russia radio last week to speak about Starbucks’ foray into beer and wine in a segment called Happy Hour Could be Coming to Your Local Starbucks.
WASHINGTON (VR) –Starbucks is announcing plans to start serving alcohol at thousands more of its locations across the US with a new program “Starbucks Evenings.” Through the program, which has been tested at over 20 locations, the coffee chain will sell wine and beer after 4pm, in an effort to boost evening sales.
Dan Cox, President of Vermont-based Coffee Enterprises, a holding company for Coffee Analysts, the largest private coffee testing company in the US, called the move by Starbucks “an interesting gamble.”
Cox, who is a shareholder in Starbucks and ten other coffee companies, said they are “all about branding” and that this might take away from that. He said they even switched back to semiautomatic espresso machines recently, because CEO Howard Schultz walked into a location one day, and couldn’t smell coffee. “What are they going to be turning into? I think they have to look at the long range picture.”
Cox said he understands the need to make up for lost revenue during the slow hours but he’s “not sure if this is the right way.” He said they also have to be careful choosing which locations will sell alcohol. “They certainly don’t want to be next to any traditional wine shops and bars,” because people would probably be more likely to choose one of those places over a coffee shop for a drink.
According to Cox, Starbucks needs to figure out their “food execution plan” because they “have never been known for really doing food well.” And “if they do bacon wrapped figs, how much are those things going to cost?”
“Legal liability,” he said, is also something to consider. In addition to having to show an ID, many states also require anyone serving alcohol to be at least 21-years-old. “Are you going to have to train your baristas or servers when to not serve customers because they’ve gone over the limit?”
Cox said it’s a tricky situation to navigate. “You’re going to have the liquor control board stopping in unannounced doing random checks to make sure you aren’t serving underage clients.” He joked, “I can even see a new profession coming out of this- the Starbucks bouncer.”
Another thing that’s unclear, according to Cox, is why the company decided to serve canned and bottled beers instead of going with beer on tap from a local microbrewery. He added that using wines from local vineyards would also be smart and it would show the coffee chain is “supporting the local economy.”
Cox said although it is risky, “obviously they’ve done their homework,” and that he thinks Starbucks is smart enough to “can it” if the program doesn’t yield great results.
And for those hoping for Irish coffee, Cox said it’s unlikely because it’s made with liquor, something that he called “a whole different animal.”
