Starbucks has changed.
These days, Starbucks is much more 'proactive' than before. Membership revamp, paid subscription, introduction of kiosks, and even delivery...
Starting on the 17th, Starbucks launched its newly revamped membership program, 'Starbucks Rewards.' This is the first renewal in 14 years.
Gold member-only benefits → Now available to Green members too!
You can now exchange your collected 'Stars' for goods, food, and beverage coupons.
More diverse benefits: Not only free drinks, but also food discounts, size upgrades, and merchandise discounts are now available.
There are also some downsides: The minimum spending required to earn a Star has increased from 1,000 won to 3,000 won, and the validity period for some Stars has been shortened.
Have you tried the coffee subscription?
In December last year, Starbucks introduced its first paid subscription service, 'Buddy Pass.'
For 7,900 won per month, you receive a coupon every day that can be used after 2 p.m.
You get a 30% discount on handcrafted drinks and food! Delivery fees and online store shipping are also free.
Vibration pagers, kiosks, and delivery apps too
Previously, the focus was on customers ordering and picking up in person, but now things are different.
Some large stores have installed vibration pagers, and kiosks will be introduced within the year.
Delivery has also started!
Starbucks is currently piloting delivery services through Baemin, Coupang Eats, and Vroong.
Open late, and even serving alcohol?
Operating hours have been extended to 10 p.m.,
and some stores are now selling alcoholic beverages such as cocktails. (Currently 12 locations)
Why all these sudden changes?
The driving force behind all these changes is pressure on profitability.
Since 2021, the operating profit margin has remained in the single digits, and costs incurred during the 'Summer Carry Bag Recall' also had an impact.
Meanwhile, low-cost coffee brands are experiencing rapid growth:
MegaMGC Coffee: Operating profit margin last year was 21.7%.
Compose Coffee: An impressive 44.5%.
In addition, they are operating more stores than Starbucks!
With competition intensifying in the coffee market, has Starbucks realized that relying on 'brand' alone is no longer enough?
Now, Starbucks is focusing on accessibility and value for money in an effort to attract a wider range of customers.
What do you think of Starbucks' transformation?
Did you prefer the nostalgic Starbucks of the past, or do you like the busier, more dynamic Starbucks of today?
-
Reporter Han Yeju dpwngks@asiae.co.kr
-
Edit Kim Inwook kiminuki@asiae.co.kr
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
