Starbucks Continues Five-Step Reinvention Plan with Focus on Rewards Program, Expanded Delivery Offerings, and Equipment Upgrades

Starbucks is continuing to move forward with its five-step reinvention plan, announced last Fall, with the continued expansion of its delivery offerings, rewards program, and equipment upgrades. 

Starbucks is leveraging its digital programs to connect with customers directly, providing them with more meaningful experiences and engagement. Direct marketing efforts have become the company’s leading digital program, and the company will continue to target consumers with relevant and meaningful experiences.

With approximately 31 million active rewards members and goals to reach 50 million members in the future, the company is putting a strong emphasis on improving the overall value of the Rewards program, and making it easier for consumers to join, through programs like Rewards Together, a partnership with Delta that can expand the ways members can earn rewards.

Starbucks Odyssey, an engaging, interactive experience that allows select rewards members the opportunity to earn NFTs, put Starbucks in a limited group of companies that has been able to integrate NFTs into their rewards program, helping them to create a digital community, as stated on the 7th Annual Future of the Consumer Conference on June 6th. 

With their delivery business experiencing a 20% year-over-year growth, Starbucks recently partnered with Uber Founder Travis Kalanick’s ghost kitchen company, CloudKitchens. Starbucks is looking for ways to support the delivery surge brought on by its Uber Eats and DoorDash partnerships. Insider revealed that Starbucks is building a kitchen in at least one San Francisco CloudKitchens location, eventually providing quick and easy access for delivery drivers of pick-up orders.

Starbucks is also prioritizing equipment upgrades as a part of the reinvention strategy, with plans to integrate the most significant overhaul of its production engine in over 50 years. The Siren system, relieving baristas from back and forth within the service bar through ice and milk dispensing capabilities and faster blenders, will be rolled out gradually, with roughly 50% of it implemented by the end of 2025. 

With a strong focus on its reinvention plan and other drivers like pricing, customization, and mix growth, Starbucks hopes for a 7% to 9% same-store sales growth in the U.S.