More and more non-traditional fast food & coffee establishments are adding beer & wine, but will it really work out in the long run? From AdAge:
Fast feeders such as Burger King, White Castle and Sonic are dabbling in booze in test markets. Starbucks has started selling wine and beer in five Seattle locations and at one in Portland, Ore. It plans to offer wine and beer in seven locations in Chicago and will expand the offerings to Southern California and Atlanta to boost evening sales.
The moves can bring higher check prices, but also regulatory headaches. And for big fast-food chains, selling booze on a large scale won't deliver huge margins -- at least at first -- since it's also likely to add upfront costs for franchisees who would need to install new equipment such as coolers and booze lockers.
There are plenty of risks. For one, most states require that people who handle or serve alcohol be at least 18 years old and be supervised by someone age 21 or older, said Alex Heckathorn, a consultant at Compliance Service of America, a consulting firm providing alcoholic-beverage licensing assistance. This poses complications for fast feeders that often hire minors. Mr. Heckathorn also noted that many states require special alcohol training for employees, a potentially costly and time-consuming endeavor for fast-feeders relying on part-time help.
Starbucks mandates that all employees in booze-selling locations be 21 or older, said Clarice Turner, senior VP-U.S. retail at Starbucks.
Further complicating matters, local licensing rules make it nearly impossible for fast feeders to sell booze in some places. "Fast-food menus would not qualify for licensing as a restaurant because many jurisdictions define restaurants as places that serve entrees, and entrees do not include sandwiches or salads," Mr. Heckathorn said. "We have to remind clients on a routine basis that hamburgers fall into the sandwich category." Full details here.
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