Millennials are driving changes in tech, coffee menu
Millennials love their coffee – and technology.
<p class = "canvas atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "And for both reasons, the coveted demographic drives Starbucks ( SBUX ) in a significant way, according to CEO Kevin Johnson. "Data-reactid =" 1[ads1]6 "> And for both reasons, the coveted demographic Starbucks (SBUX) drives in a significant way, according to CEO Kevin Johnson.
"We're in the business of connecting with customers and creating a warm, welcoming environment in our coffee and tea stores. That's the business we're in," Johnson told Yahoo Finance at Starbucks Leadership Experience in Chicago.
He was asked if the company has become a "technical company" – and it has it in a way.
Johnson explained that "the recognition that two transformative elements of modern retail create an experience, a customer experience, in your store, so that it becomes a destination."
For the reasons why Starbucks has expanded it to “a digital customer relationship. And if you can't make one of them, you will struggle as a retailer, "he added.
NEW YORK, NEW YORK – DECEMBER 14: People gather on a new one Opened Starbucks & # 39; Reserve Roasteria in Meatpacking District 14. December 2018 in New York City. The 20,000-square-foot coffee shop features three floors of coffee and cocktail bars, gourmet food, coffee beans and coffee brewing accessories. This is Starbucks second Reserve Roasteries in the US after a Seattle location. (Photo by Spencer Platt / Getty Images)
With nearly 31,000 stores worldwide, Starbucks has always established itself as a destination – or a "third place" between work and home, as the company likes to call it.
As technology transforms the retail landscape, leaving external workers home if they so choose, luring customers to physical locations has become more critical than ever.
Starbucks has “had to accelerate the pace of innovation. We have transformed the focus on beverages away from these limited offerings into several of our core beverages. We've invited happy hours in our stores, "Johnson told Yahoo Finance.
" It has strengthened Starbucks as a goal in many ways for Millennium Night, "he added. Look at the fact that over 50 percent of our beverages are now cold drinks, "citing key deals like cold brew and nitro.
And while these young consumers are coming to the stores, digital is just as important, he explained. Specifically, the increase in mobile users has been a driver of growth for Starbucks.
During the past quarter, Johnson noted that Starbucks Reward's daily active members reached 17.2 million in the United States, a 14% jump from a year ago. critical driver for the coffee company's proximity – assessed comparable store sales growth and accounted for 42% of the offer in US stores.
In fact, the company's digitally savvy customers visit the stores more often and use more.
we give them, and it's the combination of the in-store experience and the digital relationship that drives our business, "Johnson said.
Since Johnson ov In April 2017, Starbucks shares have gained almost 64%. The stock is up more than 50% since the beginning of this year.
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Julia La Roche is a financial reporter at Yahoo Finance . Follow her on Twitter. "data-reactid =" 55 ">
Julia La Roche is a financial reporter at Yahoo Finance [19659028]. Follow her on Twitter.
