Burger King Goes Upscale?

Burger King looks like it’s trying to do the Starbucks thing. The burger chain is remodeling all 12,000 of its restaurants with a look that “includes rotating red flame chandeliers, brilliant TV-screen menus and industrial-inspired corrugated metal and brick walls,” according to an Associated Press article.

The company is trying to set itself apart from McDonald’s and compete with all of the regional chains offering a higher-quality product, the article says. One analyst isn’t convinced that the move will attract new customers, though, saying that perceptions about the Burger King brand are pretty well entrenched.

Empty Bank Branches Add to Retail Woes

The Wall Street Journal reports that retail landlords now get to deal with the fallout of major bank branch closures. It seemed not too long ago that other retailers were complaining that they couldn’t afford leases in prime areas because banks were willing to pay so much more.

Well, that’s not really the case nowadays. One bank, Washington Mutual, which was getting more prominent in some areas than Starbucks, has closed about 400 units since its merger with JPMorgan Chase. Bank of America is shaving back 10% of its 6,000 units.

Starbucks Selling Beer and Wine?

It looks like Starbucks is trying to emulate the small-operation coffee houses that many claim it’s put out of business for years. In its headquarters city of Seattle, the company is test marketing a concept that will sell beer and wine and host local events like poetry readings.

What we find most interesting about this is that the prototype, called 15th Avenue Coffee and Tea, won’t even bear the Starbucks name. Instead, these stores, which could roll out nationally if they work in Seattle, will get named after their respective neighborhood locations.

Starbucks Fights Back With Ads

So it seems that Starbucks, isn’t above television advertising again.

The coffee giant has decided to start testing advertising in Indianapolis and Jacksonville, FL, most likely as a response to those horribly annoying McCafe ads that McDonald’s is pushing all over the place.

We’re interested in seeing how they promote affordability. We liked Starbucks’ crazy campaign from a few years back.

Retailers Say Rent Relief Is Working

Another interesting article appeared today on rent relief at shopping centers.

Apparently Starbucks has had success in receiving concessions from landlords, in its quest to lower rents by as much as 25% at some of its locations. Additionally, jeweler Zale Corp. earlier this week joined the ranks of retailers looking to catch breaks, and we wrote about Charming Shoppes’ strategy yesterday.

It’s On: McDonald’s Takes On Starbucks

It’s gonna get nasty!

McDonald’s has launched it’s $100-million advertising campaign against Starbucks. Who will come out the winner after the smoke clears?

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Will Starbucks Value Push Work Out?

Howard Schultz, as this article puts it, “wants to remind people what Starbucks stands for, and that most of its coffee drinks don’t cost $4.”

So Starbucks is launching a major advertising campaign to let everyone know they can get a deal at the coffee giant. The measure was announced during yesterday’s second-quarter results, a period when the company experienced an 8% same-store sales drop, as well as a profit plunge of 77%, and closed 123 stores.

Starbucks Strikes Back

Starbucks will start introducing $3.95 breakfast-coffee combo deals next month, in a move that many see as attempts to compete with McDonald’s roll out of espresso coffee drinks in its restaurants.

As part of the plan, the company announced that it will launch two new egg sandwiches that can get paired with drinks.

Video: Jim Cramer Digs McDonald’s

He also says that Starbucks is getting “pantsed by Mickey D’s.” Whoa. Cramer speaks with Jim Skinner, McDonald’s CEO.

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Starbucks Faces Lease Battles

In its drive to cutback store growth and close locations, it seems that Starbucks has ticked off a few landlords. The coffee giant is facing a number of lawsuits from property owners as it cuts back its empire, according to this Wall Street Journal report.

“Some landlords contend Starbucks is paying rent late or darkening stores before specifying the closure dates to make the landlords wary of a fight and to pressure them into letting the company out of leases for a price they deem too low.”