“Though we are growing off a large base, there is ample room to expand in regions where the Starbucks brand is less penetrated,” said Roz Brewer, the company’s chief operating officer, on Wednesday. She noted that Starbucks has a “particular focus on high volume, high margin, suburban drive-thrus.”
New formats can help reduce congestion in certain stores, said Roz Brewer, the company’s chief operating officer.
“As we introduce more efficient formats, we’re reducing the long lines that sometimes occur in metro locations, unlocking more sales,” she said.
Some locations have fared better than others. Though overall sales fell in the quarter, sales at Starbucks’ suburban locations and drive-thru restaurants grew.
Meanwhile, competitors like Dunkin’ have been better able to hold onto customers. Dunkin’s same-store sales ticked up 0.9% in the third quarter.
Starbucks’ expansion plan is coupled with efforts to encourage people to visit those locations, including better rewards in its loyalty program as well as new drinks and food.
Better rewards and more oat milk
Trendy menu offerings also help.
