Starbucks, which traces its origin to a small coffee shop in Seattle’s Pike Place Market in 1971, has come a long way, with 38,000-plus stores worldwide and a fresh plan to up its game with the help of Microsoft, Amazon and Apple.
The trio is one slice of a plan to grow the coffee giant under the direction of CEO Laxman Narasimhan, who has been in the role less than a year, after joining the company in March.
Narasimhan and his team of executives rolled out a new strategy for growth Thursday in New York City, which includes $3 billion in savings, adding 55,000 stores globally by 2050 and doubling its 75,000 Rewards members with Big Tech helping to move the needle.
STARBUCKS ROLLS OUT 'TRIPLE SHOT' FOR GROWTH
"We are also activating our digital relationships through personalized incentives that will entice customers to discover new products and establish new routines that boost all dayparts, including the afternoon" Starbucks Executive Vice President and Chief Marketing Officer Brady Brewer told investors Thursday.
He noted the 26% growth of ‘All Day Breakfast’ into the afternoon hours. "The combination of the right products, massive customer reach, and personalized marketing is a powerful driver of our business, as we saw in the fourth quarter of fiscal 2023." he added.
STARBUCKS HOLIDAY DRINKS, RED CUPS RELEASE DATE REVEALED: WHAT'S NEW AND WHAT'S RETURNING
Microsoft, already at work behind the scenes, is using its cloud technology, Azure, to process customer feedback, including how to improve the Starbucks mobile app. This type of "personalization" can help with food or drink preferences. They’ve already cleared up a function via the app which wasn’t always clear which store you were ordering from.
Amazon is partnering with the company to open two Amazon Go concept stores in New York City. Locations will offer a full Starbucks menu and select food items, with some offering lounge areas to power up or grab a workstation.
As for Apple, there are few details available, according to the company at this time. But a look back at their relationship takes us to 2007, when the two announced free in-store Wifi access to iTunes, led by then-CEO Steve Jobs, and Starbucks CEO Howard Schultz, who retired from the company this year but maintains the title of lifelong Chairman Emeritus.
HOWARD SCHULTZ STEPS DOWN FROM STARBUCKS BOARD
FOX Business is told details surrounding Apple are forthcoming, as are two new, soon-to-be revealed partners in the hospitality and financial industry. The company already has an ongoing partnership with Delta.
Shares of Starbucks have gained over 3% year-to-date, trailing the S&P 500's 13.5% rise.
