Starbucks Expanding Business

Starbucks
The Starbucks Corporation is looking to open up new and different stores in an effort to expand its business offerings. The new stores will include a tasting room type store, café’s that will feature specially blended coffees and also mini stores that actually act as express models. Each store model will offer something a bit more unique than the traditional Starbucks experience.

The new tasting room store will actually be an interactive location. The idea behind the store is that people will be able to learn about the coffee beans and roasting processes. This particular location will also offer customers a chance to try the company’s small batch coffees. It will be an interactive retail experience, which the Starbucks Corporation hopes to have opened by December 2014.

The second type of store that the company is looking to open is a high end café that will offer specialty blends and the rarer coffees that the company normally only features for a limited time. This high end style café would be in competition with such businesses as Stumptowns, which caters to individuals who have a discerning palette when it comes to coffee. These new cafés would offer their customers a chance to have the reserve blends that are normally offered only for a limited time on a more consistent basis.

The third new business model that Starbucks wants to offer as part of their project to expand can be described as an express model. since not all locations have the speedy benefits of a drive-thru option, these express model stores would offer a drive-thru-like speed in a walk-in setting. These stores are looking to make only a small carbon footprint in the world and yet offer the speediness required to be considered express. These locations would have smaller offerings than a typical store but would still use the Starbucks’ digital set up for things such as payment. One thing they are looking to offer for these express stores is a mobile ordering option so that people do not have to wait to tell their order to a barista.

All three business options would increase the number of customer options available. The first of the express stores is scheduled to be opened in New York City some time in 2015. Starbucks has not yet disclosed how many express model locations they are planning to open, but they have decided on around 100 of the higher end café’s. The tasting and roasting site will be opened in Seattle, the company’s home location.

The company hopes that in expanding their business model with these new store models, it will keep the company competitive. Coffee drinkers will now have more options brought to them by Starbucks in order to enjoy their favorite beverage. With the interactive location opening in December of this year and more of the new stores to follow in the next year, business looks to be booming for the ever growing and expanding coffee giant. As other retailers that offer both food and beverages look to be struggling, Starbucks continues to see profit increases. This move towards adding new location options should only capitalize on that growth.

By Kimberley Spinney

Sources:
BusinessWeek
Reuters
Fortune

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