Tag: starbucks

  • New Tokyo Starbucks cafe features focus booth

    New Tokyo Starbucks cafe features focus booth

    Starbucks Japan has teamed with Think Lab to launch a store concept in Tokyo where customers can “focus”.

    The first floor is designed as a normal Starbucks’ cafe where customers can order by phone and pay via an app.

    Upstairs, on the second floor is a working area called Smart Lounge for solo visitors or group meetings. The space also provides projector, semi-private tables designed with teleconferences in mind.

    “The specially designed contactless hand-off counter provides customers with safe, familiar and convenient Starbucks experience while they connect virtually with colleagues or friends in the focus areas upstairs,” the company said in a statement.

    Starbucks’ customers can reserve a table or space via a Think Lab’s app.

    Think Lab describes itself as a creator of innovative, solo working spaces based on research into the science of concentration.

  • Starbucks opens its largest store in South Korea

    Starbucks opens its largest store in South Korea

    Starbucks South Korea has opened its largest store yet, celebrating the brand’s 21st anniversary in the country.

    Located in Yangpyeong, Gyeonggido near the Namhan River, the store spans three floors and occupies a 1203sqm area and has a design unlike any other in the market.

    “The new store is a reflection of Starbucks commitment to offering more ways for customers in Korea to enjoy the Starbucks Experience,” the company said in a statement.

    The Yangpyeong store is also the first Starbucks in the country to feature a Reserve coffee bar, Teavana bar and drive-thru format together.

    The company said the store is “a new experience” for local customers, incorporating an interactive space and the convenience of the drive-thru. Starbucks is to invite local talent to perform on the store’s rooftop to celebrate the launch.

  • Starbucks sales under pressure by Covid-19

    Starbucks sales under pressure by Covid-19

    Third-quarter results for coffee giant Starbucks show a drop in sales globally as the firm continues to battle a business climate heavily impacted by the coronavirus pandemic.

    Global store sales were down 40 percent on pre-pandemic projections, driven by a 51-per-cent decrease in comparable transactions, partially offset by a 23-per-cent increase in average ticket.

    Starbucks’ performance in China compared favorably to global figures while still following identical trends. Within the market, comparable-store sales were down 19 percent, with transactions down 27 percent, although there was a 10-per-cent increase in the average ticket.

    The American market, hardest hit by the pandemic, was a significant drag on global figures, which covered a 13-week period to June 28.

    “Since the beginning of the Covid-19 outbreak in January, we have taken a principled approach to navigate the crisis, true to our mission and values,” said Starbucks President and CEO Kevin Johnson. “We are pleased to share that the vast majority of Starbucks stores around the world have reopened and our global business is steadily recovering, demonstrating the relevance of the Starbucks brand and the trust we have built with our customers.

    “As we continue to drive the recovery, we are also building resilience for the future by accelerating the transformation of our business in ways that will elevate the customer and partner experience and drive long-term growth.  We firmly believe that we are well-positioned to regain the positive business momentum we had before the pandemic began and look forward to reigniting our ‘Growth at Scale’ agenda.”

  • Craze for Starbucks Korea’s reward items appears unstoppable

    Craze for Starbucks Korea’s reward items appears unstoppable

    Amid the hype for Starbucks Korea’s small suitcases offered under its reward program, customers’ competition to get camping chairs, another promotional item, ran high this week ahead of an end to the seasonal event.

    On May 21, Starbucks kicked off a summer promotional event that finished today, giving away limited editions of goods to customers under its “e-frequency” rewards program.

    To secure one of two “summer-ready bags” or one of three foldable “summer chairs,” a person needed to drink 17 beverages, including three seasonal ones.

    It’s a seasonal event, but this year, the craze to secure pink or green summer-ready bags was high enough to see the formation of long queues in front of Starbucks outlets nationwide at dawn.

    As stockpiles for the suitcases recently ran out, customers’ last-minute race to get camping chairs heated up early yesterday morning.

    People’s repeated search for the number of remaining chairs with the Starbucks app caused the application’s functions to freeze at one point, according to the company.

    “Since I got a summer chair in early June, I’ve made several attempts to receive a green bag. But I gave up after seeing some 50 people waiting in front of me when I arrived 30 minutes earlier than the opening hour,” said a 39-year-old office worker surnamed Jung.

    Indeed, demand for the summer-ready bags, in particular the pink ones, ran high, riding on the popularity of products targeting “home camping clans” during the new coronavirus outbreak.

    In late May, one customer purchased 300 cups of coffee at once at a Starbucks branch in Seoul’s financial district of Yeouido. Snatching 17 summer bags, the person reportedly took just one cup and left the rest behind in the store.

    The move caused an uproar as the remaining 299 cups were said to go down the drain.

    The Starbucks gift items and stamp-like e-frequency rewards are being traded on local secondhand marketplace applications, including Danggeun Market.

    To collect 17 e-frequency stamps costs less than about US$75 when a customer buys 17 drinks including 14 tall-sized Americanos.

    Someone posted a pink suitcase for sale on the online Danggeun Market yesterday for $100.

    “I sold 10 e-frequency stamps that I’ve collected for $3 within three minutes of putting them up for sale,” said a 29-year-old office worker surnamed Lee.

    “I got two Starbucks chairs earlier this month, but it’s hard to explain why people, including me, have been so into the craze.”

  • ‘Starbucks Now’ starting with four Alibaba apps

    ‘Starbucks Now’ starting with four Alibaba apps

    Starbucks Coffee is introducing its own mobile order and payment system in the Mainland Chinese market as a feature on Alibaba platforms Taobao, Amap, Koubei, and Alipay.

    The Starbucks Now (“Fei Kuai”) service can be used by Starbucks customers to pre-order and pay for their beverages and food online before in-person pick-up at local stores, providing a measure of convenience whether at home or traveling.

    The feature was previously only available in Starbucks China’s own mobile app. The extension of service into the Alibaba digital economy via its cross-functional Alibaba Business Operation System (ABOS) gives Starbucks a channel into the online giant’s user base of close to a billion customers.

    “The Covid-19 pandemic highlights the importance of digitalization, which is the cornerstone for any successful brand in China,” said Alibaba Group VP Toby Xu. “Alibaba is committed to bolstering businesses’ digital firepower through ABOS

    “Through this partnership, we will continue to support Starbucks in expanding its digital service offerings across China to meet ever-evolving customer preferences and create long-term value.”

    Starbucks has collaborated with Alibaba since 2018, leveraging the firm’s Ele.me service to deliver Starbucks beverages to users’ homes.

  • Starbucks set to open its first bakery cafe in South Korea

    Starbucks set to open its first bakery cafe in South Korea

    Starbucks, marking its 21st year in South Korea with more than 1400 stores across the country, will open its first bakery cafe this month.

    Starbucks Korea, the local unit of the US coffee giant, plans to open a bakery in Yangpyeong County, Gyeonggi Province, overlooking the Namhan River. It will also feature a bar that serves the company’s tea brand Teavana.

    The company has been outsourcing the production of the baked goods it sells at its stores.

    The new store, however, will bake fresh bread on site with dough from Shinsegae Food, the food manufacturing arm of South Korean retail giant Shinsegae Group, which owns 50 percent of the South Korean Starbucks franchise through subsidiary E-mart

    The new initiative is seen as an attempt to achieve a new breakthrough in South Korea’s overcrowded coffee market.

    More than 70 percent of Starbucks sales come from drinks, with food accounting for about 20 percent of sales.

    Starbucks has been introducing new baked goods every one or two months to persuade customers to buy more bread or cakes and bakery sales have been growing by more than 20 percent annually.

  • Starbucks India opens first drive-thru store

    Starbucks India opens first drive-thru store

    Starbucks India has opened its first drive-thru store in Singhpura, Zirakpur. Located in Dhillon Plaza, the store spans two floors, featuring large in-store seating and ceiling-to-floor windows, offering a large dine-in space as well

    At the drive-thru window, customers can order drinks from the same menu as in-store and pick up from their car.

    “The opening of our first drive-thru store showcases our commitment to evolving our brand and business in India to provide new and meaningful experiences to our customers,” said Navin Gurnaney, CEO at Tata Starbucks, the local franchisee of the North American cafe chain.

    Tata Starbucks operates 187 stores across India.

  • Starbucks and Undefeated launch collection in Asia

    Starbucks and Undefeated launch collection in Asia

    Coffee giant Starbucks and Undefeated, the streetwear brand, have teamed up to create a limited-edition collection of merchandise, launched in Asia this week.

    Inspired by street-style culture, the collection features nine items in bright neon green and black. Featured items include refillable bottles, an apron, a tote bag, cap, and a notebook.

    “The Starbucks x Undefeated collaboration offers customers more ways to share their passion for doing what they love, expressing their personal style, and reminding themselves to never give up,” the company said in a statement.

  • Starbucks and Hyundai launching its own credit card

    Starbucks and Hyundai launching its own credit card

    South Korean conglomerate Hyundai’s credit-card subsidiary Hyundai Card is collaborating with Starbucks to launch a private-label credit card.

    The card will be made available later this year with marketing and operations are taken care of by the local issuer. Customers bearing the card will be eligible for all rewards offered by Starbucks on top of regular credit functions and will enjoy optimized benefits from both firms.

    “Along with the private-label credit-card product, we will spur the development of customized services based on our big data,” company officials said.

    The partnership marks Starbucks’ first such private-label alliance within the territory, while Hyundai has previously set up such agreements with E-mart, eBay, Costco, GS Caltex and Korean Air, among others.

  • Starbucks merchandise in high demand as fans miss in-store experience

    Starbucks merchandise in high demand as fans miss in-store experience

    Stuck in their homes, many US fans of Starbucks are apparently missing the experience of shopping or dining in a cafe – so they’re going online to pay huge premiums to buy the coffee brand’s merchandise.

    US high-end online reseller Poshmark has seen sales of Starbucks merchandise increase by more than 100 percent since the advent of the coronavirus pandemic.

    Buyers in search of Starbucks mugs, tumblers, earrings (yes, earrings), scarves, and almost anything bearing the famous siren logo have reportedly flooded sites such as Poshmark, hunting for bargains and rare collectibles.

    Poshmark CEO Manish Chandra suggested restrictions on movement brought on by the outbreak have triggered strong nostalgia for the coffee chain amongst patrons who regularly visit outlets. Starbucks is now the site’s top-trending brand.

    Starbucks merchandise is only available direct from its physical cafes after the company closed its online store three years ago, making it impossible for customers to browse new products in areas where lockdowns are in place.

    “People have been making their coffee at home and pouring it into their favorite Starbucks cups, or taking their Starbucks mugs to their Zoom meetings or now, virtual coffee meets,” Chandra told CNN.

    Starbucks has acknowledged the surge in demand for its merchandise on reseller sites but made no further comment.

  • Starbucks expands Teavana in Korea

    Starbucks expands Teavana in Korea

    Starbucks is expanding Teavana in South Korea. According to the Korea Herald, The number of Starbucks’ premium Reserve-branded coffee houses serving Teavana drinks has expanded from 13 to 52.

    The tea has grown in popularity within the territory since it was introduced in 2016, with Teavana sales growing 20 percent annually. One tea blend is now the chain’s third most frequently ordered beverage among younger customers, perhaps due to a heightened awareness of health consciousness in that demographic.

    During the first three months of this year, sales of green tea-based drinks rose 35 percent compared with the same period last year.

    Starbucks acquired US-based Teavana Holdings in December 2012, a “super-premium tea” product it said brought “exotic blends, great flavors, wellness and innovation” to customers globally. At that time it was a standalone retailer, however, Starbucks closed all of the stores and integrated the brand and its products into selected coffee stores.

  • Starbucks in Korea under fire for free-gift ‘wastage’

    Starbucks in Korea under fire for free-gift ‘wastage’

    A giveaway promotion from Starbucks in South Korea has drawn the ire of critics who allege consumers are buying coffee and dumping it to gain enough points for free goods. The promotion has become popular, critics say customers feel pressured to buy products in “excessive” volumes.

    Starbucks in South Korea is holding a promotional event from May 21 to July 22. If a customer buys 17 drinks, including seasonal drinks, they can get one of two small suitcases or a camping chair.

    Rival chain Hollys Coffee has also been running a promotion since May 12 that allows customers to purchase three products useful for camping, including parasols and chairs, at a 60-per-cent discount, if one spends more than 10,000 won (US$8.10) at the store.

    The problem is that some of these promotional products are exploding in popularity, and there is an abnormal craze, such as mass purchases of unwanted drinks to receive them.

    On social media sites, tips on how to buy 17 drinks at Starbucks for the lowest price (68,700 won) have been shared.

    Starbucks does not disclose the number of free gifts available at each store, but information about the stores is being posted online.

    Last Friday, a customer bought 300 cups of coffee at a time and returned home with only the small suitcases, as free gifts.

    The customer posted a memo titled “All Free” for the remaining 299 cups besides the one he or she took, but no one drank them, so all the coffee was reportedly discarded.

    In addition, some of the Starbucks suitcases are being sold for up to 200,000 won on online shopping malls and secondhand trading sites.

    “It is a thank-you event for customers who usually buy more than two cups a week, but we are in a difficult position as other customers report of the inconvenience,” a Starbucks in South Korea official said.

    “However, these gifts are being praised for their design and practicality.

    Hollys Coffee is also known to have many people lining up from dawn to buy its promotional items or going from store to store in search of a particular item.

    The craze is also attributed to the fact that both companies have released gifts aimed at “home camping.”

    Interest in domestic travel and camping has grown as the global Covid-19 crisis has made it virtually impossible to travel abroad during the summer vacation season.

    In particular, “home camping,” which can be enjoyed on verandas, porches or terraces at home, has also become popular as the number of people staying at home increases due to the coronavirus outbreak.

    According to Gmarket’s recent survey of sales during the period from April 22 to May 21, sales of tents for home use increased by 39 percent year-on-year, compared to growth of 49 percent for folding tables, and 48 percent for folding camping chairs.

    Some point out that the purpose of the promotional events, which were intended to convey a token of gratitude to loyal customers, is becoming blurred. Some are calling for measures such as limiting the quantity per person.

    “Unlike ordinary products, there is a problem where food and beverage be discarded if they are not consumed immediately,” a retail industry source said.

    “To prevent this phenomenon of throwing away money, Starbucks should be telling customers how many free gifts each store has prepared.”

  • Second Starbucks community outlet opens doors in South Korea

    Second Starbucks community outlet opens doors in South Korea

    A second Starbucks community store has opened in South Korea.

    The new venue, located in Seongsudong, Seoul, is described by the company as a “hub for young people and prospective startups to share information about networking and starting their own businesses”.

    The store is located near a sizable startup and social-venture community and a major metro station.

    Starbucks will host a series of startup workshops for young people at the store via its new Starbucks Youth Startup Entrepreneurship Programme, which is funded by a portion of sales from the store, coordinating with other stores across the market to offer the program to youth in other parts of the country.

    The community space within the store features movable walls and furniture as well as regular cafe seating.

  • Starbucks China and Sequoia Capital launch technology investment plan

    Starbucks China and Sequoia Capital launch technology investment plan

    Starbucks is to partner with the investment company Sequoia Capital to invest in new technologies that will accelerate the company’s digital innovation in Mainland China.

    The two companies plan to focus on next-generation food and retail technology companies whose products will help Starbucks grow the coffee and retail industry in China, one of its fastest-growing markets globally.

    An early focus will be opportunities to embed digital technologies across Starbucks’ retail business, making the most of data-driven analytics, modeling, and decision making.

    “These may entail adopting creative solutions to enhance front- and back-of-house operations, such as the use of machine learning and predictive intelligence tools in managing Starbucks growing retail operations in China, or the optimization of Starbucks supply chain through precise, real-time inventory management,” the company said in a statement.

    “China’s vibrant environment is a rich ground for entrepreneurship that has seen the emergence of many local innovators that we hugely admire,” said Starbucks China CEO and chairman Belinda Wong.

    “The partnership enables Starbucks to tap into the most dynamic Chinese technology entrepreneurs in order to delight our customers with meaningful innovations created in China, for China.”

    By partnering with Sequoia Capital, Starbucks will gain early access to technologies which it expects will create investment opportunities to grow its China business and keep pace with technology innovations which are driving structural reform across digital, online, and brick-and-mortar retailing.

    “Beyond the direct benefits from this collaboration, Starbucks also hopes to leverage its retail expertise, scale, and infrastructure to help realize the growth aspirations of like-minded purpose-driven companies that have a passion for leading positive change for customers and communities,” said Wong.

    “The partnership presents an exciting platform for our portfolio companies to test, commercialize and scale new innovations for China,” added Neil Shen, steward of Sequoia Capital, and the founding and managing partner of Sequoia Capital China. “Together with Starbucks, we look forward to bringing the digital transformation of the consumer retail industry in China to the next level.”

    This is not Starbucks’ first commitment to identifying and funding new technologies. Last year it launched Siren Ventures in the US to invest in new concepts and technologies.

    “We are excited to tap the tremendous energy of technology entrepreneurs from two of the world’s largest and most dynamic markets, to pioneer innovative solutions that could reimagine the global retail landscape,” said Kevin Johnson, president, and CEO of Starbucks.

  • Starbucks China launches plant-based menu with Beyond Meat, Oatly, Omnipork

    Starbucks China launches plant-based menu with Beyond Meat, Oatly, Omnipork

    Starbucks China is launching a plant-based menu in partnerships with Beyond Meat, Omnipork and dairy-substitute Oatly which will be available in most stores nationwide.

    From tomorrow (April 22) the coffee chain will launch two pasta dishes and a wrap featuring Beyond Beef, effectively launching the meat-substitute brand on the mainland.

    A Vietnamese-style noodle salad and mushroom-sauce grain bowl created with protein-based pork substitute Omnipork is also going on sale, along with oatmilk options on its beverage menu, created with Swedish brand Oatly.

    Leo Tsoi, senior VP, COO and president at Starbucks China Retail, says the new menu items make it easy and enjoyable for customers to explore new lifestyles.

    “Through our new plant-based platform, we seek to inspire new routines by inviting everyone to eat good, feel good and do good. Together, we can take a small, humble step to make a better world,” he said.

    Beyond Meat has worked with Starbucks as part of its market entry into the Chinese mainland. Ethan Brown, Beyond Meat founder and CEO says the launch marks an important milestone in the company’s goal of increasing accessibility to plant-based protein globally.

    “Starbucks is a trusted brand with a strong market presence and deep understanding of customers in China, and we’re pleased to partner with them on our market entry. We believe the new Beyond Beef menu items deliver on our promise of enabling consumers to Eat What You Love while also enjoying the nutritional and environmental benefits of plant-based protein,” he said.

    Meanwhile, oatmilk joins soy as a dairy alternative, which has been a feature of the Starbucks China menu for 13 years.

    “It’s a significant step for the growing plant-based movement that Starbucks customers in China can now enjoy their favorite beverage with Oatly,” said Toni Petersson, global CEO at Oatly.

    “Oatly pairs extremely well with espresso and creates a wonderfully dense and creamy foam for lattes.”

    Starbucks China has also launched a merchandise range made with recycled coffee grounds, including tumblers and notebooks. The grounds are processed and mixed with polypropene to form an industrial-grade material with more than 30-per-cent recycled coffee ground content. Th