By Joseph Haecker, Fractional CMO, Book Author, and Podcast Host
Starbucks built a global empire on the idea of the "third place"—a welcoming space between home and work where people could gather, relax, and connect. This culture wasn’t just a part of the Starbucks brand; it was the Starbucks brand. Yet today, the company is taking steps to distance itself from this unique identity. Why? To chase revenue through drive-thru and grab-and-go services.
As a Fractional CMO, a book author, and a podcast host, I focus on "customer-centric marketing"—putting the customer at the center of business strategy. And let me tell you, Starbucks isn’t just chasing the wrong problem; they’re potentially alienating the very customers who made them a success in the first place.
The Post-COVID Shift: A Missed Opportunity
During COVID, Starbucks discovered a revenue boost in drive-thru and grab-and-go orders. Post-pandemic, they doubled down on this model, optimizing for speed and volume. They’ve removed tables, turned up the music, and even implemented a policy requiring purchases to use seating or restrooms.
But let me ask you this: when you walk into any coffee shop—Starbucks or otherwise—what do you see? People on laptops. Friends catching up. Business deals being closed. In short, people treating the coffee shop as their third place.
Starbucks seems to be asking: "How can we move people through our stores faster?" I’m asking: "Why not lean into the very culture you created?"
A Customer-Centric Marketing Strategy
The essence of customer-centric marketing is simple: understand what your customers value and double down on delivering it. Starbucks already created a culture of gathering. Instead of dismantling it, they should embrace and elevate it.
Here’s how:
Turn Customers into Brand Ambassadors
Imagine this: you’re working on your laptop, and an employee approaches you.“Excuse me, are you a student or a business professional? We’d love to feature you in our Starbucks digital magazine.”Suddenly, you’re not just a customer—you’re part of the Starbucks story. You’re proud to share that moment with your network.
Reimagine the Space
Instead of removing tables, why not designate zones for specific uses? A “quiet zone” for remote workers. A “social zone” for friends meeting up. Add power outlets, better lighting, and comfortable seating. Make the space a reason to come inside.
Community-Focused Events
Host regular events: networking meetups, local business showcases, even live podcast recordings. Starbucks could become a hub for collaboration and creativity.
Digital Integration with a Purpose
Build an app feature where customers can share what they’re working on while at Starbucks. A digital board could showcase these projects in-store, creating a sense of connection among patrons.
Encourage Loyalty Through Experience, Not Just Rewards
Starbucks already has a strong rewards program, but what if it rewarded behaviors that align with the third place? Offer incentives for those who spend time in-store—free refills for longer stays or discounts for those who attend events.
The Risk of Ignoring the Customer
Here’s the thing: coffee is coffee. What differentiates Starbucks isn’t what’s in the cup—it’s what’s around it. The sounds of conversation. The glow of laptops. The feeling of being part of a community. By focusing solely on convenience, Starbucks risks becoming just another fast coffee brand.
As a Fractional CMO, I’ve seen businesses thrive when they double down on their strengths. For Starbucks, their strength is the culture they created. Customers don’t just want coffee; they want connection, inspiration, and a space to call their own.
The Bottom Line
Starbucks is at a crossroads. They can continue down the path of fast, impersonal service, or they can embrace a strategy that puts customers first—one that acknowledges their need for connection and provides a space for it.
The choice seems clear to me. Starbucks, you already built the third place. Now it’s time to build on it.
And here’s the thing: I can help.
As a Fractional CMO, I specialize in customer-centric marketing strategies that elevate brands by reconnecting them with their core audience. Starbucks, if you’re ready to realign your strategy and reclaim the heart of your brand, let’s talk.
And to coffee shop owners reading this: if you’ve ever dreamed of outpacing a giant, this could be your moment. By doubling down on the very culture Starbucks is stepping away from, you can create a loyal community and stand out in the crowded coffee market.
Feel free to reach out—I’d love to help you implement a strategy that turns your coffee shop into the destination for connection, creativity, and community. Together, we can redefine what it means to be the “third place.”
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