Love the coffee or loath it, the Starbucks’ brand is a huge success. Along the way they’ve made a few mistakes, but what brand hasn’t? And as they say, if you’re not moving forward you’re moving backwards.
The most recent step forward sees the brand introduce a tiered café system, which will increase the number of café’s, while decreasing their operating footprint. These new cafés are called Starbucks Express and the first one has recently opened in the heart of New York’s financial district, at 14 Wall Street.
By creating a tiered café approach Starbucks will build a more profitable model (reduced CAPEX/OPEX), which will respond to the changing needs of fast-moving urban consumers. And they haven’t stopped there. The order and pickup areas have been separated, which means more customers can be served.
Whole Foods, Walmart and now Starbucks are proving that sometimes, bigger isn’t always better.