November 02, 2013

Can Starbucks Do for Tea What it Did for Coffee?

Starbucks, the company that reinvented the modern coffee shop, is turning its attention to another venue: the teahouse. Last year the 19,000-cafe giant acquired Teavana, a chain of mall stores that sell tea and teaware. This week, Starbucks opened the first Teavana tea bar on New York�s Upper East Side with plans to open 1,000 stores in North America within 10�years. 2 �We have confidence and excitement and optimism about?�?the tea bar concept, not only in the U.S. and North America, but opportunities in other places around the globe,� says Cliff Burrows, Starbucks�s president for the Americas, Europe, Middle East, and Africa, and�Teavana. If Starbucks is where people head for a caffeine fix before work, Teavana intends to be where they go for a leisurely lunch or an afternoon break (times when they�re less likely to be at a Starbucks). Dine-in customers can get their drinks and food on real dinnerware, and the snacks are upscale items such as mushroom and kale flatbread and lemongrass ginger chicken rice balls. comp_starbucks45__01__630x420 The prices are slightly higher than in coffee shops, and the store sells tea and accessories for the home. To prevent customers from expecting a quick-service experience, there�s zero Starbucks branding. Instead, the wall of the New York store is bejeweled with colorful tins showcasing Teavana�s 100 varieties of loose-leaf teas�including such unorthodox blends as White Chocolate Peppermint Rooibos and Strawberry Blush Ros� Oolong. The menu lists the 100 loose-leaf teas as �signature teas� and �rare teas.� What features more prominently are Teavana�s handmade drinks, which aren�t available at its more than 300 mall stores. There are tea-based lattes (which start at $3.95) as well as �craft tea fusions,� basically nonalcoholic tea cocktails that use such mixers as pineapple coconut water and fresh mint ($4.95). �The area where we will be innovating is the tea lattes,� Burrows says, noting the CocoCaramel Sea Salt Latte. �We wanted to be pretty bold and out there.� The second half of the menu has breakfast pastries and sandwiches, and for later in the day flatbreads, salads, small plates, and desserts. �Lunch will be important,� Burrows says. 5 What's your thoughts on that?
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