Starbucks in Gas Stations?

Not content with opening three or four coffee shops on every major city block, Starbucks is now planning to sell its beverages through thousands of vending machines across the United States. In a five-year deal with Coinstar – better known for its DVD rental boxes – the java retailer will offer its Seattle’s Best Coffee brew at kiosks in supermarkets, drugstores and mass merchants.




The Rubi serves up a variety of hot drinks, from mochas to lattes. Coffee drinks are available for as little as $1. The device takes up nine-square feet of retail space, and the machines eventually may be able to produce iced drinks as well.

The “Rubi” kiosks will begin rolling out this summer at grocers, drugstores and mass-market retailers, the companies said yesterday in a statement. Starbucks is seeking to expand beyond its namesake products and boost sales with the more affordable Seattle's Best Coffee brand, acquired in 2003. In February, the brewer said it would begin selling Seattle’s Best at Kmart stores and Chevron gas stations. It’s also sold in some Yum Brand's Taco Bell restaurants, Burger King Worldwide Holdings Inc. locations and Subway stores.

Self serve kiosks are not new, California based Jamba Juice recently announced they will install 400 to 500 units of its new JambaGO outlets in schools, convenience stores, colleges, entertainment centers and other nontraditional locations.  Taking roughly the space of a soda fountain beverage dispenser, the self-service JambaGO outlets expects a revenue stream of about $700,000 for 2012.

You may have seen Sprinkles the cupcake chain installed a “cupcake ATM” at its original location in Beverly Hills, Calif., that has red velvet-craving patrons lining up at all hours of the day and night selling roughly 1000 cupcakes per day.  Very creative.