Starbucks “Stealth” Stores, McCafe Halo…

Starbucks has ditched its branding on three trial stores and redesigned them to resemble independent local cafes. The trial, which is running in the coffee giant’s home city of Seattle, uses the address of the cafe in its branding. For example one is called 15th Avenue Coffee and Tea. In addition the products sold are also non-branded. Starbucks senior vice president Tim Pfeiffer said the new stores aimed to reflect the local community more than the chain’s regular stores currently did. One of the trial outlets will feature poetry readings and live music.
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Photo Credit: Bean Activist

Starbucks Credits McD’s, Cost Savings for Sales Improvement
Starbucks Coffee Co. appears to be coming out of freefall — thanks, in part, to marketing by McDonald’s. In a third-quarter-earnings call this afternoon, Starbucks CEO Howard Schultz credited margin improvements, cost savings and attention brought to the category by its rival’s big-budget McCafe launch with helping to improve Starbucks’ same-store sales. The chain’s same-store sales fell 6% during its fiscal third quarter in the U.S., but that still bests the prior quarter, when same-store sales were down 8%.

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