Having set its benchmark and recognition with the green mermaid lady, Starbucks is an all-time favorite for every youngster out there. But there is much more that goes into the establishment of the same right from branding to marketing and business strategies. There are so many things you may have never known about Starbucks that could change the way you think of the place.
Aroma and taste are the overriding factors determining coffee preference. Since aroma is the essence of the whole in-store experience at Starbucks, employees are not permitted to wear perfume and cologne. Starbucks has a strict dress code for all its employees which says "Perfume, cologne, shaving lotion or highly fragrant deodorants or powders may not be worn because the smell affects the taste and aroma of our coffee". Moreover, it even has a strict restriction on jewellery, piercings and tattoos since the brand firmly believes that the employees are the face of Starbucks.
Starbucks, however, also cares more about the setting in which its guests might enjoy their sip of frappe. There are two kinds of tables inside a Starbucks store : round tables and rectangular tables. The reason for the round tables is so that folks don't feel or appear lonely. Starbucks designs its stores a certain way so that people can feel like they have their own private space while still being in a cafe setting.
But Starbucks also quietly benefits from its most passionate customers. How often have to come across an individual availing a free drink on their birthday month at Starbucks? Starbucks Rewards program lets members earn "Stars" that they can use to obtain free food and drinks. To earn stars and use smartphones to place an order at Starbucks, money is to be loaded onto the company's card. As of March 29, these customer prepaid balances totaled just over $1.4 billion.
Starbucks is essentially gaining access to an interest-free line of credit, one that equates to roughly 4% of the company's total liabilities. The number of rewards members is raising at a starkling rate and with the rate of adoption of e-payments, this is expected to rise even further. Since this membership comes with no expiry date, users don't really care much about the outstanding amount and tend to spend in on a future yet unknown date. Surprising, it is not just about Starbucks, brands like Chipotle Mexican Grill and Barnes & Noble, also love when their cards aren't used. All of three brands earned more than $99 million in income last year from their gift card.
Chipotle addresses in one of its annual reports that 4% of its gift card sales will not be redeemed on an average and that adds on to a huge profit for these big names. Well, while people are transiting into faster and convenient modes of online payments, it is a win-win for brands which market their membership cards. While, we are sipping away our cups of coffee, Starbucks is making lots with just hoping some of their customers lose their cards or not avail points at all.