Starbucks photo
Starbucks announced a shift in its U.S. retail strategy last week with an emphasis on takeaway sales instead of the traditional sit-and-sip coffee shop experience.
The change, explained in a June 10 letter by company c.e.o. Kevin Johnson, shifts more points-of-sale toward what Starbucks calls the “evolving customer needs of experience, connection, and personalization.” The moves, reportedly already in planning, were pushed forward by the Covid-19 pandemic and consumers’ shift away from in-store purchases to on-the-go orders.
The new strategy will roll out during the next 18 months, the company said, noting that about 80% of Starbucks’ U.S. transactions were for to-go orders.
“As we navigate through the Covid-19 crisis, we are accelerating our store transformation plans to address the realities of the current situation, while providing a safe, familiar and convenient experience for our customers,” Johnson said in the statement.
Starbucks will start with the expansion of what it calls a Pickup store, a store concept already in place in dense markets including Chicago, Seattle, San Francisco, and New York City. Customers order and pay in advance using the Starbucks app and then walk in to retrieve their purchases.
Curbside pickup also will be available. Using the mobile app, customers order and pay, then wait in designated parking spots outside Starbucks stores. The number of locations offering curbside service will be increased over time. In addition, a pilot program will be created under which some locations will exclusively deliver sales this way.
Finally, the traditional American drive-thru window will continue to be available. New drive-thru options will be developed, including possible double-lane drive-thru locations or a combination of drive-thru plus curbside pickup using the advanced app ordering feature.