Starbucks was founded on a business model of becoming “the third place” for people to go, somewhere between work and home. When Starbucks launched in 1971, it had a mission to become a place for people to connect and meet up.
By the late 1980s, the cafe and seating areas had been largely added to the business. Around this time, sociologist Ray Oldenburg came up with the phrase “third place” to describe how Starbucks had become a stop, an in-between destination for people.
Now, in 2022, the need and demand for coffee shops have evolved even more. Starbucks has reported increased demand for on-the-go drinks. In an effort to meet these needs and adapt, Starbucks will be opening additional locations but keeping them limited to walk-up and drive-thru options.
Founder and CEO Howard Shultz said in a statement, “Today, we find ourselves in a position where we must modernize and transform the Starbucks experience in our stores and recreate an environment that is relevant, welcoming and safe, and where we uplift one another with dignity, respect and kindness. We need to reinvent Starbucks for the future.”
The company stated that it wants to keep connection and coffee at the center of its values while reimagining how it shapes new stores.
Group President of North America and COO John Culver said, “Today we find ourselves at another unique moment, a moment that challenges us to reinvent and think differently. Our partners have come to expect more from us. Our customers have come to expect more from us. And it is clear our physical stores must modernize to meet this moment.”
Culver continued to say that Starbucks would like to enable “stronger engagement and connection between our partners and the customers they serve [while] delivering experiential convenience, in a way only Starbucks can.”
Part of the new stores will include a new coffee bar to accommodate the increase in demand for custom and cold drinks as well as plant-based milk alternatives. Starbucks will invest $450 million into its new North America stores, adding over 2,000 by 2025, including “pick up stores, drive-thru only, and delivery-only” stores to meet customers where they are.
Another evolution will be the option to place an order via a QR code while we wait in line. The company unveiled this new initiative as “Starbucks Odyssey,” which will, in turn, be powered by Web3 technology. Like the mobile app, this new tech initiative will allow users to earn points and “engage with…members and partners.”
Starbucks Executive Vice President and Chief Marketing Officer Brady Brewer stated, “As we drive even more demand ahead, we are enabling our stores to handle even more capacity, while significantly reducing the effort required from our partners, so that we can enable partners to focus on what they love doing – crafting the world’s best coffee and connecting with customers.”
“Coffee is at the center of who we are and remains on the forefront of anticipating what customers love and our partners are proud to deliver,” Brewer explained.
