Retail in Asia

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Starbucks expanding store formats, digital payment platform

The Starbucks Coffee Company is expanding its store formats and will be launching a new express store platform that will debut in New York in early 2015.

The Starbucks Reserve Roastery and Tasting Room will provide an interactive coffee roasting experience and coffee education, as well as a retail space that would allow it to expand its small-lot sourcing program.

More than two years in development, the project will allow customers to engage with Starbucks passion for coffee in a 15,000 square-foot interactive retail environment devoted to beverage innovation and excellence.

“Everything we have created and learned about coffee has led us to this moment. The Starbucks Reserve Roastery and Tasting room is a multi-sensory experience that will transform the future of specialty coffee,” said Howard Schultz, chairman, president and chief executive officer of Starbucks, in a statement.

He said this super premium experience will be made available to cities around the world after the US launch. The plan is to introduce the experience to 800 to 1,500 stores worldwide.

Ten years ago, Starbucks first brought these premium coffees to customers with their line of Black Apron Exclusives. Formally launched in 2010 under the Starbucks Reserve brand, the exceptional collection of unique, small-batch Arabica coffees became available in select stores and online – some of which have sold out in less than 24 hours. In 2011 Starbucks opened its first international Starbucks Reserve store in Tokyo, Japan and by the end of FY14 will be available in 21 countries. As China becomes the second largest market for Starbucks in 2015, Starbucks said the Reserve coffee will be integrated into this specialized, day part growth model.

Recently, Starbucks opened its first ever Starbucks Reserve location in Latin America as part of a three-level store serving 100 percent Colombian coffee and is on track to exceed over USD1.5 million in year one sales.

In addition to expanding its in-store offering, the company salsa aid it is looking to integrate Starbucks digital payment platform, including mobile ordering to expedite speed of service in these locations.