The recession has hit Starbucks hard, with McDonald's stealing market share with high-quality, coffee beverages, and lower performing stores shutting its doors.
So what's the company to do? One wouldn't have predicted its latest move. After spending millions to build its brand, Starbucks is going undercover by opening 15th Avenue Coffee and Tea, one of several stores Seattle that will be unbranded. Selling itself as a local community hangout, the store will serve alcohol, serve espresso from a manual machine, and host book readings and music performances.
I'm curious to find out what people make of this. The new stores don't seem to address Starbucks real issue right now: its high price point.