SEATTLE – Starbucks announced a new tasting room and express store format last week, as part of an accelerated growth strategy.
The company announced the expansion of its store formats in FY15 with the interactive Starbucks Reserve Roastery and Tasting Room dedicated to roasting, coffee education and increased availability of its small-lot Starbucks Reserve coffees. This consolidation of small-batch roasting will allow the company to expand its Starbucks Reserve coffee line to 1,500 locations globally, as well as open at least 100 stores that will highlight these rare coffees exclusively.
Recognizing the diversity of needs across its customer base, Starbucks also plans to test small-footprint, express stores focused on offering convenience to customers. This evolution in store experience builds on the profitability of tailored, localized store design and formats.
“Everything we have created and learned about coffee has led us to this moment. The Starbucks Reserve Roastery and Tasting Room is a multi-sensory experience that will transform the future of specialty coffee,” said Howard Schultz, chairman, president and CEO of Starbucks, in a press release. “We plan to take this super premium experience to cities around the world, elevating the Starbucks experience not only through these stores but across our entire business.”
Starbucks will be investing in smaller, alternative store footprints that address the increase in urbanization and decentralization of retail. With drive-thru stores accounting for more than 40% of U.S. company-operated stores and higher than average sales growth than non-drive thru locations, there is significant opportunity to meet commuting customers in smaller experiences, according to the company.
The express formats will look to integrate Starbucks digital payment platform, including mobile ordering to expedite speed of service in these locations. The growth of Starbucks digital payment applications and online presence will also allow the company to identify opportunities where store segmentation can support an enhanced physical and digital retail experience to expedited merchandise and at-home coffee purchases or subscriptions for take-home or home delivery.
Starbucks is on track to bring approximately 1,550 net new stores in FY14 and 1,600 net new stores in FY15 with nearly 300 net new company-operated locations in the United States.
In related Starbucks news, Petrol Plaza reports that a Shell petrol station will open in the Netherlands at a Starbucks this week. The Shell Starbucks opens on the A2 just south of Amsterdam.