Starbucks, the global coffee giant, is set to embark on a new phase of growth with the help of technology giants Microsoft, Amazon, and Apple. The company, which began as a small coffee shop in Seattle in 1971, now boasts over 38,000 stores worldwide. CEO Laxman Narasimhan, who took over the role less than a year ago, has unveiled a new strategy for growth, including $3 billion in savings, adding 55,000 new stores globally by 2050, and doubling its 75,000 Rewards members.
To achieve these goals, Starbucks is turning to Big Tech for support. Microsoft is utilizing its cloud technology, Azure, to process customer feedback and improve the Starbucks mobile app. This will help personalize the customer experience and cater to individual food and drink preferences. Amazon, on the other hand, is partnering with Starbucks to open two Amazon Go concept stores in New York City. These stores will offer a full Starbucks menu and select food items, with some locations even providing lounge areas for customers to relax or work. As for Apple, details about their involvement are currently limited, but past collaborations between the two companies have included free in-store Wifi access to iTunes.
Starbucks is optimistic about the potential of these partnerships and believes that the combination of the right products, personalized marketing, and massive customer reach will drive its business forward. The company is also focusing on activating its digital relationships through personalized incentives to entice customers to try new products and establish new routines throughout the day.
While Starbucks has experienced a year-to-date gain of over 3% in its shares, it lags behind the broader market's rise of 13.5% as measured by the S&P 500. However, with its new growth strategy and collaborations with technology giants, Starbucks aims to position itself for future success and further expansion in the global coffee market.