When you walk into Starbucks, you often see business people talking about cases, students studying and writing reports, freelance workers immersed in their work, and friends gossiping. However, Starbucks went against its original strategy of targeting adults and opened the world's first parent-child-friendly store in Japan. The store was originally full of laptops and books, but suddenly it was filled with baby strollers. What on earth is Starbucks thinking?
Small tables and chairs have been greatly changed to create a comfortable space for the family
According to "ITmedia" reports, this Starbucks store is located in AEON Lake Town, the largest shopping mall in the world in Koshigaya City, Saitama Prefecture (with a total area of approximately 183,000 square meters, 710 stores and 9,500 parking spaces. At both ends of the mall, approximately 30 minutes walk).
This Starbucks has three major designs specifically tailored for families:
1. Decoration that caters to parent-child preferences and activities
The store has changed its elegant and taste-oriented wallpapers and replaced them with cute illustrations; it has adopted lower tables and chairs, from the 80 cm high table and 60 cm high chairs in general stores to 60 cm tables and 40 cm high chairs. The sofa is more convenient for both children and parents to use.
In addition, one of the biggest fears for customers who bring families with children to public places is the uncontrollable noise of the children, which may lead to embarrassment towards the customers in the store. When it is advertised as being specially designed for parents and children, and most of the customers in the store are parents and children, this psychological burden is greatly reduced, and you can enjoy your leisure time freely.
2. Spacious circulation area, strollers and wheelchairs can also be parked
Generally, in Starbucks, the distance between customers and neighboring tables is relatively close, and sometimes only one person can walk. This is very troublesome for parents pushing strollers. Customers have also reported that queuing is very difficult and there is nowhere to park the stroller. Waiting to complain.
The store has widened the circulation line and the aisle is large enough to accommodate 2 strollers side by side. This width also makes it easy for wheelchair users to get in and out.
3. Launch a special menu for children
The parent-child store launches Frappuccino specially designed for children, and it is served in a plastic cup with a handle, which is safe and durable. In addition, the store also has a seasoning bar where children can manually adjust the flavor of drinks, creating an interactive experience.
Why does Starbucks' new store model challenge its core customer base?
The key to combing through Starbucks' business model is to create a "third space" for customers. The first space is home, the second space is the workplace, and the third space is a place outside the first two spaces where work, business discussions, relaxation and other activities can be completed.
Business people and individual travelers who are accustomed to going to Starbucks prefer that the stores have comfortable tables and chairs so they can focus on work or socializing. Parent-child-friendly stores almost deviate from these functions. Why are they willing to risk "violating" their core customer base?
One is to reduce own competition. As of the end of June 2024, the total number of Starbucks stores in Japan has reached 1,948. Even one shopping mall in AEON Lake Town has 7 stores. Although different locations will attract different customer groups (for example, those close to the station are mainly business people), such a saturated situation not only makes it difficult to attract newly opened stores. Extra customers may even lead to "intra-area fighting", which inevitably means stores compete with each other for customer flow.
Secondly, there is the pressure to increase revenue. Global inflation has been severe in recent years. Although Starbucks' revenue in 2022 has stabilized to 143.9% of the pre-epidemic level, and its net profit margin has exceeded 5%, the rising costs of raw materials, personnel, water and electricity expenses and other costs have caused profit growth Slow down.
In addition, Starbucks' US headquarters has to face challenges such as changes in public consumption habits and deterioration of customer experience. The company's stock price has almost fallen below 70 yuan from US$114 in mid-2023 to July 2024. Faced with various pressures, even though Starbucks Japan is performing well, it still decided to jump out of its comfort zone and try different business formats to attract under-exploited groups.
In addition to parent-child stores, Starbucks is also expanding into its 40,000 stores worldwide, including "T&C", which focuses on tea drinks, and "STARBUCKS RESERVE® ROASTERY," a premium coffee brand.
Internally, the newly appointed CEO Brian Niccol hopes to optimize customer experience by improving service efficiency and slimming down overly complex menus. Externally, he also wants to explore new store types, develop new customer groups, and improve single stores. revenue to make up for the lack of overall performance growth.
Source: ITmedia
