Raley’s to convert some in-store cafes to Starbucks

Western grocer Raley’s has partnered with Starbucks to roll out full-service coffee kiosks in selected stores.

So far, plans call for cafes in three stores to be converted to Starbucks locations through early next year, West Sacramento, California-based Raley’s reported. The new Starbucks are slated to open inside Raley’s supermarkets in Incline Village and Natomas, California, in October and November, respectively, followed by another at a Bel Air Market in Gold River, Nevada, in spring 2024.

“We are excited to partner with Starbucks, a coffee industry leader, and we know our customers want Starbucks. This new partnership is all about expanding our offerings and giving our customers a fresh cafe experience,” Chelsea Minor, vice president of community impact and public affairs at The Raley’s Companies, said in an email statement. “We have plans to convert several store cafes to Starbucks over the next few years. The first phase is in progress.”

The three stores undergoing conversions are switching from Peet’s Coffee to Starbucks cafes. Fifty-six Raley’s locations currently have in-store cafes, with three partners: Peet’s (48), Chocolate Fish (four) and Drink Coffee, Do Stuff (four).

“Across our portfolio of stores, for the last several years, we have been evolving our cafe operations. For each store, we evaluate the customers’ preferences, nearby offerings and the space to determine what partnership fits best,” Minor explained. “At Raley’s, we have multiple coffee partnerships, including Peet’s, local Sacramento company Chocolate Fish and specialty coffee Drink Coffee, Do Stuff. In some stores, we have expanded our cafes to include a wine-and-beer bar and indoor/outdoor seating.”

Along with full-service coffee and specialty beverages, the Starbucks kiosks will offer an array of grab-and-go foods plus other products, according to Minor. She said square footage of the cafes varies by location, and some stores will have outdoor signage indicating the cafe vendor inside.

“All locations have different formats and customer bases, which will help us test and learn to assess future locations,” Minor said. “As we look at new stores, we will review business performance and customer preference/response to the new offerings,” she added.

Overall, The Raley’s Companies has more than 21,000 employees and operates a retail network of more than 235 stores in California, Arizona, Nevada and New Mexico, including the Raley’s division banners of Raley’s, Bel Air Markets, Nob Hill Foods, Raley’s O-N-E Market, Food Source and Sak ’N Save and the Bashas’ division banners of Bashas’, Bashas’ Diné, Food City, AJ’s Fine Foods and Eddie’s Country Store.