With the best third quarter to date and seemingly a store on every corner (nine stores per square mile in Manhattan alone), coffee giant Starbucks might be content to rest on its laurels. But in an increasingly volatile coffee market, with both local artisanal roasters and larger, expanding coffee brands sipping away at its share of the customer base, CEO Howard Schultz is focused on what Starbucks can do to maintain a competitive edge.
According to Bloomberg, the company is set to break ground on three new store concepts within the next year. In Seattle, Starbucks plans on getting back to its roots with a specialized, 15,000 square-foot interactive Roastery and Tasting Room that puts the focus back on the magic behind the brew, with what it refers to as a “retail environment focused on beverage innovation.”
A new café model will follow that is dedicated to the specialty Reserve blends roasted at the new facility. Starbucks will also continue to roll out smaller “express-style” footprints to piggyback on the success of drive-through locations and provide digital payments and quick, easy choices for consumers on the go.
This announcement comes on the heels of product expansions in Starbucks’ cold beverage portfolio and rumored experimentation with cold brew coffee, which shows that retail locations aren’t the company’s only platforms for innovation.
Starbucks’ introduction of these customer-driven solutions to continually transform its business aligns with Insigniam’s template for a transformation road map, allowing the company to tap into new demographics, market products existing products in different ways, and attract customers at different price points—in this case, both high-end coffee connoisseurs and value-minded, time-crunched commuters.
Schultz has proven, both in his original stint as Starbucks CEO and when he took back over in 2008, that he and his executive team are keen to identify all possible opportunities for breakthrough growth in order to maximize revenue and profit streams and align leadership for additional future growth.
While we may joke about a store on every corner, the pervasiveness of Starbucks and the continued focus on reinvention only proves that Schultz and his team are doing everything right when it comes to keeping the momentum of expansion and growth.