Raley’s begins converting cafes to Starbucks

Raley’s will convert three of its in-store Peet’s Cafés to Starbucks in the next several months and is planning to transition additional cafés to Starbucks in the coming years.

Although these will be the first three Starbucks outlets inside Raley’s, the company’s Bashas’ division in Arizona, which Sacramento, Calif.-based Raley’s acquired in 2021, already has 33 Starbucks kiosks in its stores, Chelsea Minor, VP of community impact and public affairs at Raley’s, told Supermarket News.

Raley’s and its sister banners, including Bel Air and Nob Hill Foods, operate several supermarkets with other coffee concepts, including Peet’s, Chocolate Fish, and Drink Coffee, Do Stuff.

The first Peet’s locations scheduled to reopen as Starbucks are in the following stores:

“All locations have different formats and customer bases, which will help us test and learn to assess future locations,” said Minor.

Raley’s will become a Starbucks licensee to operate the new cafes and kiosks. Starbucks, which does not sell franchises, offers licensing agreements that allow operators such as retail stores to run the cafes as they wish.

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A rendering shows Raley’s vision for its in-store café areas, this one with a Drink Coffee, Do Stuff coffee concept.

“Across our portfolio of stores, for the last several years, we have been evolving our café operations,” Minor said. “For each store, we evaluate the customers’ preferences, nearby offerings, and the space to determine what partnership fits best.”

In some stores, she said, the company has expanded its cafés to include a wine and beer bar and indoor/outdoor seating. The photo above of a remodeled cafe in a Roseville, Calif., store shows an airy seating area with a bar, a TV screen and several tables, along with a coffee counter.

“This new partnership is all about expanding our offerings and giving our customers a fresh café experience,” Minor said.

Raley’s continues to operate dozens of Peet’s locations inside its stores as a licensed partner with that company, which is owned by German conglomerate JAB Holdings.