Starbucks Adds NFTs to Loyalty Program, Plans to Reach 45,000 Global Stores by End of 2025

starbucks is preparing for the future with Starbucks Odyssey, a new experience that will be powered by Web3 technology, and the launch of its Reinvention plan, a Three years financial roadmap that aims to deliver 7% to 9% sales growth in comparable stores and 10% to 12% annual revenue growth. The retailer also expects to increase its global store portfolio by approximately 7% annually to reach 45,000 locations by the end of 2025 and keep the chain on track to reach approximately 55,000 locations by 2030.

“Starbucks is a growth company and our accelerated expansion is a direct reflection of the expected returns from our Reinvention plan,” said Laxman Narasimhan, who will become CEO of Starbucks. from October 2022 in a sentence. “By making strategic and highly targeted investments to create value for partners, Starbucks will also create value for customers and shareholders while managing costs, improving margins and elevating the Starbucks experience for all stakeholders.”

Starbucks plans additional investments in the workforce

The Starbucks Reinvention plan also includes a three-pronged associate support model that aims to empower associates to thrive at work, thrive as individuals, and thrive together. The retailer plans to invest in recruiting, training and onboarding, as well as other tools and benefits for workers, with several near-term solutions rolling out in 2023:

  • Salary and recognition innovationThis includes helping provide associates with the hours they need, expanding digital tips and incorporating other opportunities to increase overall pay;
  • New wellness benefits including offering enhanced sick pay, new savings and student loan management benefits, and additional mental health support; Y
  • Personalized professional mobility through a newly introduced partner app and the development of personalized career paths.

Starbucks will also invest in its store managers through new leadership training, reinvention of scheduling and decision-making tools, and career path mapping to improve retention and satisfaction. The retailer found that stores run by managers who have more than Three years of mandate have 13% higher weekly sales and higher customer satisfaction.

Collective changes focused on the workforce will be implemented at Starbucks 9,000 Stores operated by American companies. The most effective and scalable best practices from these initial efforts will be applied globally.

Customer benefits include new store concepts and technology

Starbucks will also introduce customer experience enhancements across retail and digital to help meet customers wherever they are by expanding the experience beyond the physical store. The retailer will invest in Three Specific areas:

  • Specially designed store concepts: Starbucks is reimagining the store environment, investing an incremental amount $450 million in the existing U.S. store base in fiscal 2023 with continued investment in fiscal 2024 and 2025. Starbucks expects these investments will drive efficiencies, unlock capacity for partners and enable higher returns to support the growing customer demand;
  • Innovation in beverages: Starbucks has developed the Siren System, an innovative new proprietary piece of equipment designed to meet the growing demand for personalization of hot and cold beverages and hot foods. The retailer has also redesigned a cold beverage station to reduce the time and number of steps required to prepare cold beverages, freeing up time for associates to connect with customers; Y
  • Effortless Digital Convenience Expansion: Starbucks will emphasize convenience and personalization enabled by Starbucks Rewards, Mobile Order & Pay and grow its Starbucks Delivers program in the US with a new partnership with DoorDash, expanding nationally alongside Uber Eats in the US. fiscal year 2023.

These efforts will be supported by the launch of Clover Vertica, a hot brew coffee made using proprietary technology that allows shoppers access to a freshly ground, freshly brewed cup in as little as 30 seconds. Starbucks has already begun rolling out the technology, which will be fully rolled out to all US stores in the next few years. Three years. Additionally, Starbucks is developing a Cold Pressed Cold Brew system to deliver cold pressed coffee and espresso in seconds.

The economics of the new store are expected to provide a fifty% ROI and 25% cash margin that will help Starbucks accelerate US store growth 3% to 4% annually. The retailer will diversify and expand formats across cafeterias, pickup locations, delivery only, and drive-thru only.

Starbucks Odyssey adds NFT to its loyalty program

The shopper experience will be further enhanced with the Starbucks Odyssey, which will offer Starbucks Rewards associates and members in the US the opportunity to earn and purchase collectible digital assets that unlock access to new benefits and immersive coffee experiences. Starbucks plans to integrate NFT with its loyalty program at scale while building a digital community with the program, which will launch later this year.

Members can log in to Starbucks Odyssey using their Starbucks Rewards login credentials. From there, they can engage in activities called “journeys,” such as playing interactive games or taking on challenges to deepen their knowledge of coffee and Starbucks. They will be rewarded for completing journeys with a collectible digital NFT ‘journey stamp’.

Members can also purchase ‘limited edition stamp’ NFTs through an integrated marketplace within the Starbucks Odyssey web app experience. The limited edition stamps will be available for all members to purchase directly with a credit card, with no crypto wallet or cryptocurrency required.

All stamps will feature artwork created in collaboration with Starbucks partners as well as outside artists. Additionally, a portion of the proceeds from the sale of limited-edition stamps will be donated to support causes important to Starbucks employees and Starbucks Rewards members.

Each digital collectible stamp will include a point value based on its rarity, and stamps can be bought or sold between members within the marketplace, with ownership secured on a blockchain. As stamps are collected, members’ points will increase to unlock access to unique benefits and experiences, such as a virtual class in making an espresso martini; unique merchandise and artist collaborations; and invitations to exclusive events at Starbucks Reserve Roasteries or trips to the Starbucks Hacienda Alsacia coffee farm in Costa Rica.

“Starbucks has always served as the third place, a place between home and work where the warmth of connection to coffee, community and belonging is felt,” said Brady Brewer, executive vice president and chief marketing officer for Starbucks in a statement. “The Starbucks Odyssey experience will extend Third Place’s connection to the digital world. For the first time, we are connecting members of our Starbucks Rewards loyalty program not only with Starbucks, but with each other.”

Additionally, Starbucks Odyssey is made with technology that aligns with Starbucks sustainability aspirations and commitments. The program will use a “proof-of-stake” blockchain technology created by Polygon, which uses less energy than first-generation “proof-of-work” blockchains.

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