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[ Starbucks: Coffee Shop For The New Normal ]
As one of the go-to coffee shop for years, Starbucks has come up with another sales idea to justify themselves to COVID – 19. Financially, the pandemic has already put a serious dent in Starbucks’ bank account. The company said that at the peak of the crisis in April it was losing $125 million a week in free cash flow, and the coffee chain now estimates that the pandemic will cost it $3 billion to $3.2 billion in revenue in the third quarter, the April-June period, or close to half of its sales from the quarter a year ago.
In order to fix its dent, Starbucks made a Pickup store concept to adapt with current situation. Smaller space that don’t have customer seat-in, not only lower rents but also more efficient to operate. Since Starbucks has just been testing this new strategy, there are two Pick-up stores, Manhattan and Toronto. But Starbucks’ CEO, Kevin Johnson, is planning to expand the amount of Pickup stores as a reaction to the pandemic.
Customers can experience the Pick-up stores with ordering through Starbucks’ app, get the estimated wait time, and pick up their order inside the store. On the past July, Starbucks established Starbucks Now in Beijing that focuses on mobile orders and delivery. Pickup lets Starbucks save expenses on real estate and labor while delivering its customer since people tend to be more comfortable ordering through the smartphone.
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