The New Starbucks Tea Bar: Hot or Not?

Starbucks' first Teavana tea bar opened recently on Manhattan's Upper East Side in New York. Starbucks made a (at first sight) boring category — coffee — interesting. Can it do the same with tea? That's the question.

Starbucks has grown huge since its origin in 1971. The roaster, marketer and retailer of coffee operates in 62 countries, with 200.000+ people, serving handcrafted coffee, tea and other beverages and a variety of fresh food items in 19,700 stores. Wow: respect!
In 2011 Starbucks dropped the word ‘coffee’ from its logo in a move to expand beyond the coffee market and become a multi-product company. Starbucks acquired the specialty-tea retailer Teavana with 300 stand-alone stores a year ago. Now the company is opening Teavana tea bars.
“Tea has been a part of Starbucks heritage since 1971, when we were founded as Starbucks Coffee, Tea and Spices, and this new store concept elevates the tea experience in the same way we’ve done for coffee,” said Howard Schultz, Starbucks chief executive officer in a press release. With the Teavana Tea Bar Starbucks enters the second most-consumed global beverage behind water. Tea presents a $90 billion global market opportunity.
The first Teavana Tea Bar is located at 1142 Madison Avenue (cross street: 85th Street). Starbucks describes it as "a modern tea bar with a wide range of unique hot brewed and iced teas, tea lattes and distinctive sparkling and tea fusion beverages".

Starbucks made a (at first sight) boring category — coffee — interesting. Can they create the same Tea experience as they did for coffee? That's the question.

The proof of the pudding is in the eating. I was very curious about the divided first impressions of opinion leaders like tea fans and bloggers who've visited the tea bar.

Nicole Martin: "I have a feeling that Teavana will fit right in with the "grab and go" culture of New York. One thing I was very impressed with was their use of the Bkon brewing system. It uses reverse atmospheric pressure to extract a perfect brew in seconds".

Jo J: "Tea cafes/coffee & tea cafes, time to step up your game, if you are still solely carrying teabags, oh boy… and hiring trained knowledgeable tea staff must be in your immediate plans".

Jason Walker: "If Teavana succeeds at passing off mediocre specialty tea at these prices, there is good news for competitors with higher quality. Overall, the growing presence of Teavana across North America will provide new and better offerings for tea drinkers, but the Teavana I saw that day will not last long in its current form".

Yuka Yoneda: "The tea bar also boasts one of the world’s only tea carbonating machines. We tried a sample yesterday and found that the bubbliness really allows you to enjoy tea in a totally new way".

According to their first reactions the Teavana Tea bar is indeed a real experience, as we could expect from Starbucks. The concept will be rolled out all over the US. Will it stay the same? I am sure it will change, because that's essential in trying to open up a new market. You should experiment, measure, learn and adapt your new concept. Learning by doing applies to Starbucks, too.

So what do you think: Will Starbucks conquer the world with Teavana tea bars as it did with coffee? Do they have a chance on your continent?

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Gijs van Wulfen is the founder of the structured FORTH innovation method. He recently published : "The Innovation Expedition, A Visual Toolkit to Start Innovation". Available at Amazon.com or Amazon.co.uk.

Photo: Starbucks Press Room

Andrew Pontes

Agile Project Manager @ NSW Ombudsman | Delivering Case Management Solutions using Microsoft Dynamics 365 and Pega

10 年

Coffee has never been one of their strengths any way.

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Arzu B.

Sr. Manager-G2M Business Automation IBM | AI | GenAI | ∣ψ? ? ∣φ? Quantum | RPA | Growth & Digital Transformation Leader | BigData(Book) Author | Speaker | Pedagogy | Owns AI and HR focussed LinkedIn groups ~200k members

10 年

From European point of view, I was already wondering when Starbucks would start with this initative... I own one of the Tea-Plantages exist in Europe myself, I inherited from my ancestors, the plantages are at North East of Black Sea. In my opinion drinking Tea has a total different mind set up, it has been for centuries a cerenomy, the mind set of consuming Coffee is rather more belongs to a modern-rush hour life, there are although some other historical facts, like in Eastern Countries dirinking Coffe also has a different interference in daily life, but still Tea and Coffee differ from eachother for consuming moments, so this business model will generate a reveneu?i would say Bio TEa would be hit :)

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sherif bakr

MUSICAN at Free People

11 年

best idea

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l am really happy to hear @ the new starbucks tea bar. iam intrested to open in india. let me know the detail;

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Rob Yuschak

Independent Health, Wellness and Fitness Professional

11 年

Teevana teas are loaded with pesticides and chemicals, as well as gmo. Do you really want to pay unreasonable prices to put these in your body? Not me!

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