Starbucks to Drop Name, Sell Beer

The latest in the Coffee Chronicles.

Caffeine and desperation don't mix.

In this recession, companies have been hit hard by the fact that consumers just don't have a lot of money to spend. So what do you do when nobody will buy your $4 coffee anymore? Simple. Just change the name.

That's why Starbucks, America's most ubiquitous coffee-pusher, has decided to try something different to boost sales. The company will be dropping the name from many of its stores in Seattle and turning them into community-oriented coffee houses.

That means live music, book and poetry meetings and the service of wine and beer. But they'll still brew the same coffee as mondo Starbucks.

So why would they drop their recognizable name? Why, when everyone knows what you're going to get when you walk inside, would they break familiarity with consumers?

"Price. Price. Price," says Erwin Ephron, a consultant to advertisers. "I mean, we're in a recession. They have been nailed right and left if not by name -- and often by name -- 'why are you spending $4 for a cup of coffee?' That has resonance with people. That's something you can give up fairly easily."

So while this may be good or bad news, depending on how burnt you like your coffee, don't expect it to happen outside of Seattle anytime soon. It's only a market test.

You can enjoy your Grande Frap in peace. For now.

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