Once Starbucks moves away from its ‘Third Place’ model, what does it have left to offer?
Sep 24, 2022, 7:37 AM | Updated: 8:20 am
Earlier in September, Starbucks announced in front of shareholders its plan to move towards convenience and away from its “Third Place” business model — Howard Schultz’s idea that Starbucks locations are a community space between work and home.
According to the Seattle Times, the company will emphasize drive-thru, pick-up, and delivery options among new store openings within the next two years, with only 2% of new openings being cafe-style stores.
“I don’t think this is going to be a good thing for Starbucks, because I think one of the reasons people go there in the first place is because it was a meeting place,” host Ursula Reutin said.
“I’m not just going for the coffee. I am going for the partners that work there. I love the community aspect of Starbucks,” host Gee Scott agreed.
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The Seattle Times report notes that Starbucks plans to open some 2,000 locations in the U.S. over the next three years, a high number that is subsidized by convenience-first store openings — 35% will be drive-thrus, 14% pick-up only, and 5% delivery.
“Starbucks has been out gamed in their third place idea,” producer Andrew “Chef” Lanier noted.
“But it is a place with generally a very clean bathroom. You know what you’re getting gonna get in terms of atmosphere and environment. It’s a great place for a quick meeting. If you take that away, what does Starbucks have left?”
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