Raising the Bar

Following grocers’ lead, some convenience retailers are serving alcoholic drinks, exploring in-store bars.

Raising the Bar

September 2019   minute read

By: Pat Pape

Offering packaged beer and wine to consume off-premises is baked into convenience retailers’ DNA. Now, some stores are testing the waters to see if handcrafted, ready-to-drink alcoholic beverages can lift sales and drive in-store traffic—local laws permitting—as consumers seek more-indulgent shopping experiences.

The trend has its roots in the grocery store channel. Currently, more than 200 Whole Foods grocery stores have in-store bars, and the company’s large Austin, Texas, location is said to have the biggest draft beer selection in the chain with 55 taps. Wegmans, the Rochester, New York-based supermarket chain, has nearly 100 stores, and about 10% of them feature The Pub by Wegmans. The grocery-store-cum-bar offers time-honored bar foods, such as buffalo wings and burgers, plus beer, wine and cocktails in some New York, Pennsylvania and Virginia locations.

Last year, Albertsons opened a new store in its hometown of Boise, Idaho, complete with a spacious brewpub featuring indoor and outdoor seating for 200 and a homey fireplace. Dubbed Broadway on the Rocks, the chain’s first in-store bar offers customers 36 beers on tap, wine, mixed drinks and a generous selection of sandwiches and pizza. A second and similar Albertsons brewpub opened in Meridian, Idaho, in March.

Beers on Tap

For reasons ranging from liquor laws to limited square footage, not all c-stores are rushing to install bars or offer adult beverages on site. However, several retailers have taken steps in that direction to see if consumers respond to the novel offering.

One of the most highly publicized c-store bars can be found in the 7-Eleven “test store” just south of downtown Dallas. Newly opened in March, the store is known as Sylvan | Thirty because it’s located at the corner of Sylvan Avenue and Interstate 30. Customers can purchase a variety of local craft beers on tap, either by the glass, crowler (32 oz.) or growler (64 oz.). Customers buying a glass of beer must consume it in the store, which has indoor seating for 30 and a small, rustic patio outside.

Shoppers who prefer wine may buy a glass to enjoy at the store or choose a take-home bottle from The Cellar, an alcove with a wide vino selection. Alcohol buyers must pay at the front counter, where they are IDed by store staffers. A second checkout is in the food area, which features a barista-run coffee bar offering shakes, smoothies, nitro cold brew, kombucha on tap and other treats, but alcohol cannot be purchased there.

While 7-Eleven said it will build five more test stores around the country, it hasn’t announced plans for adding beer and wine bars to existing locations.

“Convenience retailing is light years away from the days of bread and milk being sold from ice docks in 1927, and the industry is changing at a faster rate than ever before,” said Chris Tanco, executive vice president and chief operating officer, 7-Eleven. “7-Eleven stays at the forefront by pushing the boundaries and being unafraid to try new things. This new lab store will serve as a place to test, learn and iterate new platforms and products to see what really resonates with customers and how we can use those learnings to influence future store designs.”

It’s one of the few places where you can buy something in the store, sit down at the bar, drink part of it and walk out with part of it.

Drinking and Strolling

Teton Village, Wyoming, is a great place for skiing, hiking, fishing and rafting. It’s also an ideal location to enjoy a beer, wine or a “sloshie” from Bodega, the gourmet convenience store and bar located at the bottom of the ski slope.

Owned by the Fine Dining Restaurant Group of Jackson Hole, Bodega sells gourmet cheeses, quality meats, fine wines and assorted grocery items, but one of the most popular offerings is its selection of alcoholic beverages available from the in-store bar.

“It’s one of the few places where you can basically buy something in the store, sit down at the bar, drink part of it and walk out with part of it at the same time,” said Mike Minella, manager of Bodega. Thanks to local alcohol laws, people in Teton Village are free to stroll around town, visit with friends and window shop, all while sipping an adult beverage.

“It’s a pretty wild concept,” he said. “But these are people staying in the village. They’re not really going anywhere.”

The popular sloshies are available every day in four different flavors, which like the beer and wine offerings, change regularly. They are concocted in five-gallon buckets, then kept in the walk-in cooler until reinforcements are needed for the store’s pair of two-barrel drink machines.

There are 11 seats inside Bodega where customers can relax and imbibe. They also can enjoy their drinks and the beauty of the Teton mountains outside at one of three picnic tables or the high-top tables with chairs. “It depends on the weather,” Minella said. “If it’s a nice day, people will spread out on the grassy area outside. We are a unique concept. You can spend a long time here.”

Alcohol To-Go

Between October and December 2018, Rutter’s, the York, Pennsylvania-based convenience chain, tested a take-out, “adult slushie,” and despite the cold weather outside, the icy alcohol drinks were a huge hit. Rutter’s now sells the adult beverages in 15 stores and is awaiting approval from the liquor control board to offer them in 10 more locations.

All of the slushies are malt beverages that require a certain sugar content in order to freeze in the same type of two-barrel machines that are used to create traditional, frozen carbonated beverages. At first, the drinks were available in two flavors, but when customers asked for additional choices, Rutter’s responded. Pina colada, “Jamaican me crazy” and a “hard” iced tea are some of the flavors attracting repeat business.

“During the test, we offered them in 16- and 20-ounce cups, and the majority of customers purchased a 20 ounce at a higher ring,” said Ryan Krebs, director of foodservice, Rutter’s. “So, we just rolled out the 20 ounce.”

Customers usually take the beverage to go and drink it at another location. Anyone who starts drinking the beverage at the store is required by law to finish it there, but Krebs said he’s never seen anyone do that.

“You order it at the beer checkout register, swipe your ID and pay for it there,” said Krebs. “We mark the receipt to show that you’ve been ID’d, and the order goes to the restaurant. Then, you bring the ticket to the restaurant. It shows that you’re of age, and we give you the drink. It’s the best way to control IDing and ensure that the customer is over 21.”

Every cup of adult slushie receives a lid similar to those placed on fountain sodas. By law, Rutter’s associates must put a sticker over the straw hole, which officially makes it a “closed container” beverage. In-store signage lets customers know that they must keep the drink closed and the sticker in place until they get to their destination in order to be in compliance with the law.

“Once people go through the process, they get it,” Krebs said. “It’s pretty easy, and it’s turned into a very successful program.”

Pat Pape

Pat Pape

Pat Pape worked in the convenience store industry for more than 20 years before becoming a full-time writer. See more of her articles at patpape.wordpress.com.

Share:
Print: