We used to hear a lot from CEO Howard Schultz about Starbucks as the “third place” replete with comfy chairs, smiling coffee mavens, and carefully-curated tunes–the perfect place for a book group, a break with the kids, or for the growing freelance nation. For many, Starbucks was an office away from the office, complete with free wifi.
Well, in a tough economy, that cozy vision may be more aspirational than realistic. After looking at the numbers, it appears that what coffee customers want most is their five-shot in a to-go cup. 80% of Starbucks customers walk out of the store with their drink. Starbucks stores with drive-up windows account for 30% of the U.S. total, yet produce 45% of U.S. retail profits. Schultz announced last week that 60 percent of the next 1500(!) US locations will have drive-throughs; the java-pushing CEO called drive-throughs “a fast-growing, highly profitable format for Starbucks.”
Some argue that the very idea of a sustainable drive-through is a contradiction in terms: sustainable buildings should form parts of walkable landscapes. But for the caffeine-deprived masses, convenience is of the essence. The other big revenue growth areas for Starbucks these days? Single-serve “Verisimo” pods and “Via” instant crystals, for a Starbucks-at-home experience.AK