Starbucks has redesigned its licensed coffeehouse business in the US, shifting from a primarily regional model to a segment-focused approach.
The company said organizing around segments allows it to have a clearer focus, more relevant support and stronger foundation to grow in high-potential segments like travel, healthcare and campuses.
“A Starbucks in a hospital, a grocery store or an airport face very different realities,” said Aaron Koransky, senior VP, US Licensed Coffeehouse Business.
“These locations are operated by licensee partners who bring deep expertise in how their environments work and how customers move through them,” he added.
Koransky said the approach also positions the company to expand into new segments and evolve its formats and capabilities in different environments.
In the future, the company plans to add certain technology that gives customers more ways to order, while ensuring the same experience.
“Whether customers order ahead, order digitally, or order at the counter, the result should feel familiar, fast and unmistakably Starbucks,” Koransky said.
As part of the restructure, Starbucks has launched several initiatives to boost “shared success” with licensees, including a licensee-specific version of its Grow program, performance-based incentives, product and equipment for different settings, greater sourcing flexibility, and joint business plans and shared investments.
“This next chapter gives licensees more clarity and opportunity, gives customers greater consistency and gives Starbucks more ways to be part of the rhythms of their day,” Koransky added.
Starbucks reported a 3 per cent increase in net revenues to $37.2 billion in FY25. Licensed businesses accounted for approximately 12 per cent of total revenues.
This article was first published in Inside Retail.
