Starbucks Features Happy Hour and Evaluates Future of Teavana Stores

Starbucks is introducing a Happy Hour promotion that features its new creation called The Unicorn Frappuccino. This new promotion will last from May 5 to the 14. During the promotion all Frappuccinos drinks are sold for half price encouraging customers to buy and try any flavor they choose. The Happy Hour takes place from 3- 6 p.m. Its a time when many people get out of work and go to Starbucks to relax and unwind.

 

Another flavor served is Midnight Mocha Mint. Promotions are hectic and the staff has to prepare themselves for the promotions. Staff make the job look simple but it requires being fast and cool under pressure. Some locations only have indoor service and others a drive through window. Customers are often coming in at a fast pace.

 

This drinks are complicated to make and when you have a promotion and staff has to keep cool under pressure. Frappuccinos are custom made and each customers can choose from a variety of different type of milk and syrups to make them. They have extended the hours for this promotion to make these promotions more successful.

 

Starbucks currently has 350 Teavana stores located in malls across the US. Due to the fact that traffic in malls has slowed they are deciding what to do with these stores. Many consumers have shifted from shopping at brick and mortar stores and to shopping online on the Internet. Declines in Starbucks Teavana stores in sales has been high over the last few month and they expect further decline.

 

Online shopping and mobile shopping has reduced traffic in their stores and many retailers located in the malls have felt the pinch. They have plans to review the problem and try to make some changes to improve the performance of the stores. The company has closed a few stores and will continue to evaluate this struggling chain.

 

Some of the stores are successful and they continue to offer new product to attract customers. It is working on mobile payment system and ordering for these stores. This increased orders by 20 percent in many of the stores.

 

Starbucks Heavily Investing In China With New Roastery

China has seen tremendous economic growth in the past few decades, and global brands are rapidly shifting their focus to capture this growing market. A recent article posted by Eater outlines the plans for Starbucks’ expansion into Shanghai. While Starbucks is already operating in China, this plan calls for the construction of a huge 30,000 square foot complex, offering way more than the normal Starbucks store. With the recent growth in the coffee “boutique” experience, it seems a natural extension to bring this experience to the Chinese market.

The facility that Starbucks is planning is intended to be a full-service facility, where customers can watch coffee being roasted and take educational classes, as well as chat with baristas and purchase small-batch boutique coffees. They intend to offer an experience curated for the Chinese consumer, including regional food and drink choices. This is one example of Starbucks trying out larger and more impressive combinations of roasting facilities and retail merged together. Starbucks has also built one of these facilities in Seattle, Washington, with much fanfare and celebration.

This bold move is part of Starbucks’ overall swing towards China, following global market trends. In a recent interview, Starbucks CEO Howard Schultz suggested that in the near future, China could have a larger percentage of Starbucks stores than the United States. While this bet will play out over time, Starbucks is heavily leaning on anticipated growth in China.