Starbucks Brews Up Reinvention, Again

We’ve covered Starbucks a number of times on this site. From the invention of the “digital flywheel” to the launch of Aira, its cutting-edge app for blind or low-vision customers, Starbucks has never shied away from innovation.

As previously reported, since April 2022, Starbucks has been undergoing a period of introspection. After months of research and corporate soul-searching, the company released its reinvention plan to investors on September 12, 2022. 

While many of the company’s new initiatives revolve around labor relations and reinvigorating its purpose-driven approach to business, Starbucks will also be evolving its digital footprint.  

To start, Starbucks will be expanding its mobile app to all locations including airports and grocery stores. Presumably using artificial intelligence and machine learning, it will add new, personalization features to its Order & Pay app. 

The company also released new details pertaining to its new “Starbucks Odyssey experience” and “Third Place” strategies. Leveraging Web3 technologies, Starbucks will soon be launching its own metaverse complete with NFTs. As described by the company, “Starbucks Odyssey will be an extension of the industry-leading Starbucks Rewards program that members can access using their Starbucks Rewards login credentials. Once logged in, members can engage in Starbucks Odyssey ‘journeys,’ a series of activities, such as playing interactive games or taking on fun challenges to deepen their knowledge of coffee and Starbucks. Members will be rewarded for completing journeys with a digital collectable ‘journey stamp’ (NFT).”

Last but not least, in response to a new cohort of competitors that rely on high-volume automated espresso systems to fuel their business models, Starbucks too plans to embrace more in-store automation to enable baristas to focus on customer relations. For example, according to the Starbucks website,  “A new proprietary Siren System that features a custom ice dispenser, milk-dispensing system and new, faster blenders all located within reach of a barista, reducing bending and heavy lifting. It also eliminates the need to move back and forth behind the service bar and eases congestion in a crowded, busy space.”

Though such a move will undoubtedly make Starbucks stores more efficicient, one has to wonder if some of these iniatives are diamtrecally opposed. Will increasing automation while decreasing human workers really help foster the sense of community that differentiates Starbucks from other fast food joints? Or will it have the opposite effect?

Regardless, we'll be excited to see how these reinvention plans play out and will certainly look forward to sharing more with you down the line.