Starbucks, which traces its origins to a small cafe in Seattle’s Pike Place Market in 1971, has come a long way, with more than 38,000 stores worldwide and a new plan to up its game with help from Microsoft , Amazon and Apple.
The trio is just part of a plan to grow the coffee giant under CEO Laxman Narasimhan, who has been in the role for less than a year, having joined the company in March.
Narasimhan and his executive team rolled out a new growth strategy in New York on Thursday, which includes $3 billion in savings, adding 55,000 stores worldwide by 2030 and doubling its 75 million Rewards members with the help of big tech to make things happen.
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“We are also activating our digital relationships with personalized incentives that will inspire customers to discover new products and establish new routines that will energize all parts of the day, including the afternoon,” said Brady Brewer, executive vice president and chief marketing officer of Starbucks, to investors Thursday.
He noted the 26% growth of “all day breakfast” in the afternoon. “The combination of tailored products, massive customer base and personalized marketing is a powerful driver of our business, as we saw in the fourth quarter of fiscal 2023,” he added.
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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 fixed a feature through the app that didn’t always let you know which store you were ordering from.
Amazon is partnering with the company to open two Amazon Go concept stores in New York. The locations will feature a full Starbucks menu and food selection, with some offering lounge spaces to power up or grab a workstation.
As for Apple, few details are available, according to the company at this time. But a look back at their relationship takes us back to 2007, when the two announced free in-store Wi-Fi access to iTunes, led by then-CEO Steve Jobs and Starbucks CEO Howard Schultz, who retired from the company this year but retains the title. as president emeritus for life.
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FOX Business is learning that details regarding Apple are coming, as are two new partners soon to be revealed in the hospitality and financial sectors. The company already has an ongoing partnership with Delta.
Shares of Starbucks have gained more than 3% year to date, trailing the S&P 500’s 13.5% rise.