Why Starbucks Operates Like a Bank | WSJ The Economics Of

Starbucks, the $124.4 billion global coffee giant, trails only McDonald’s as the largest restaurant chain by market capitalization. Until a few years ago, the massive coffee company held more mobile payment users than Apple Pay. But what actually makes Starbucks excel in a crowded market?

WSJ’s Heather Haddon explains how Starbucks used technology to build its loyal customer base and why mobile orders are shifting the chain’s business priorities.

0:00 Starbucks operates like a bank
0:52 Starbucks’s history and menu
2:59 Starbucks’s technology
4:16 Store models
4:49 Culture and values

The Economics Of
How do the world's most successful companies generate revenue? In this explainer series, we'll dive into the surprising stories behind how businesses work--exploring everything from Costco's "treasure-hunt" model to the economics behind Amazon's AWS.

#Starbucks #Coffee #WSJ

[myhappytime]

I was expecting more analysis on how the Starbucks is operating like a bank, all I learned is they have lots of cash.

[DJTejasMusic]

The video makes only ONE economics point: Starbucks's card program allows them access to a lot of funds, more than some banks. That's it. The rest is just reporting around their performance in the pandemic and against unions. Sheesh don't call this economics.

[csanton]

I still remember when Starbucks first entered the Philippines late 1990s, people were going into that place not because we are coffee lovers or appreciate the coffee tasting notes, but because of the ambience and feel of the place. Hotel amber lighting, Jazz music on the background, Aroma of coffee in the air, Sounds of blender, steaming, people talking and voice of barista. It's just a pleasant feeling of relaxation that stood out from what other places are offering which is quick ready to go store.

Another thing is that they didnt have a problem with people just buying one drink and making it their home for the day. Until today they have not offered a wifi unlike other stores but it didnt affect them in a negative way.

[kendellfriend]

POV: you’re a Starbucks barista watching thinking about all the times you’ve encouraged and helped customers setup the mobile app yet you still don’t get paid enough: 👁💧👄💧👁

[seanipher]

I love how companies try to make it sound like it’s a strategic advantage that they don’t call their workers “employees” but some other name. In all the service jobs I’ve had companies do this. I’ve heard team members, all-stars, client advocates, etc. Maybe if Starbucks realized that this is not an effective strategy to make their employees feel heard they wouldn’t want to unionize… 😂 (Obviously there are many other factors that go into the unionization decision)

[gregorynuttall]

I always chuckle when someone calls ESpresso "EXpresso". 😂

[jessaa]

as a shift manager at starbucks, the hardest part of the job just like a lot of peoples is the customers. before working at starbucks, I always worked in the restaurant industry. I will say starbucks customers are by far the rudest, I swear they do not understand basic manners. It makes the job so difficult

[jayski]

For me, Starbucks history is divided into pre-cell phone and post-cell phone periods. And it has nothing to do with app ordering or loyalty rewards. Pre-cell phone, the shops were quiet almost library like places to read a book or newspaper. Maybe a quiet conversation with a friend. But post-cell phone, they almost turned into telemarketers boiler rooms. People would set up camp with laptops, phones and printers to do business on the free WiFi most of the day. Then came app orders, now you can walk in and although there may only be 2 people ahead of you, the "partners" are working on 20 app orders ahead of those of us standing in front of them. Odd that those who took the time to actually show up in the store, wait for people who are still out on the streets somewhere. Needless to say that even though I lived in Seattle, was a Starbucks fan in the beginning and lived in Seattle when they took over the old Sears building for the their headquarters, I no longer enjoy the place. Customer experience has nothing to do with their business model anymore. The drinks mas as well come out of a nozzle in a vending machine now.

[shttc]

I loved working for Starbucks because I felt valued and the discounts (and free beans!) were enviable. But perhaps this is because my manager was great at her job and always made us feel irreplaceable.

[ivanaflores]

I recently left Starbucks after working there for 2 and a half years. This pandemic has been going on for 3 years now, and working there really taught me: 1) that customers really do not care about us (ppl would come with covid through the drivethru), and 2) this company also does not care enough about its partners as they say they do. I understand why the Buffalo partners unionized, they were most likely fed up with the way the company handled things.

[emmab]

The brilliant thing about the gift cards is that Starbucks is basically getting billions in loans with pretty much zero interest (yes, it has to provide you with a free drink every so often but that's negligible and lots of those points expire anyway). It gets to use that cash basically however it wants to and not have to pay interest to its creditors.

[siamimam]

As an Uber eats driver I love Starbucks so much!! They treat us with respect and always has the order ready! Great management

[islandbee]

I challenge those who only go to Starbucks. To try an independent coffee house. The quality of coffee most of the time is way superior to Starbucks. And the product and service is much more organic.

[KentBunn]

Schultz was the FORMER marketing director when he bought Starbucks. He had left the company to start a different chain, because the founders wouldn't let him take the stores in the directions he ultimately did after they left.

And they went on to take over Peets.

[naomiganjoo]

Need a follow up video on how and what they do with the card cash 🤗

[SardorKirck]

Let's be honest, we all love the "Economics of" series, don't we?

[phucyouse]

I would like to formally thank Starbucks for keeping me alive with free waters while I was hoboing all over the country, you guys were always in the most savvy places and it was sometimes the only nutrition I had all day. #3 is timeless!! It was only once that I was chagrined for it. Your host/esses were always pleasant, a belated thanks is in order for yas.

[TheBlackcell]

Love how they say it’s a “issue” when it comes to union lol

[akashtanwar]

My bank had free coffee. I don’t know why they put a chain around their pens though.

[Jessrobbie]

There are lots of interesting options (real estate, stocks, gold, silver, cryptocurrency, Airbnb, ETFS)