I was sitting at Starbucks a few months ago. I don’t know what it is about Starbucks’ environment, but it allows me to be a little more creative than I would be if I was at home or the office. Maybe it’s the continuous stream of people and conversations that flow or the lack of kids or co-workers tapping me on my shoulder.
As I’m sitting and observing those around me, I noticed a gentleman who came in and sat at a corner table. He took his laptop out of his bag, opened it and started working. My first thought, he was just at the Starbucks to use the free wi-fi. Not much later, he walked up to the counter and pick up a drink and sat back down.
In the meantime, there was a long line of people waiting to order their drinks.
I just witnessed a trend that Starbucks is fully aware of and is investing its resources to perfect it.
Old Habits are Hard to Break
I saw a group of guys come in. They were asking each other what they wanted. You can tell that they were buying each other’s drinks. Several guys were sitting outside and several of them came in. One of the guys walked back out and yelled to the other asking what they wanted again. At this point, they are stuck in line waiting. Wasting valuable time they could be spending with each other.
Is this a problem? Maybe not. But, I just looked at the guy waiting outside and he looked over to see where “his guy” was. He’s still in line waiting to order.
If they had the Store’s App and ordered through it, they’d be focusing on something more important than waiting.
The Waiting Generation
Millennials and future generations is redefining what’s worth waiting for. It makes perfect sense. Every second, minute, hour is important considering our limited time here on earth.
Businesses should take advantage of this new trend now in order to survive long-term. They will have consumer behavioral data-also known as Internet of Things (IoT); a competitive advantage that will prosper while everyone plays catch-up.
A Long-Term Investment
A lot of financial analysts keep saying that Starbucks is in trouble. They continue to innovate and invest in the digital future. They are willing to take action and try something new.
A prime example, the majority of their customers use iPhones. Starbucks had to make a decision to either accept digital payments through Apple Pay or push their customers through the app.
Starbucks had launched test markets for Apple Pay but didn’t see much adoption with that model. I’m an avid Apply Pay user and will continue to use Apple Pay with merchants that accept it.
At the end of the day, they stuck to the app with the ability to reload the app with money using Apple Pay. To be honest, I actually enjoy their controlled experience.
Their geotagging location services notifies me when there is a Starbucks nearby and influences my decision to go or not. Most times, I ignore the tag, but it still gets me there during times I wasn’t planning on it.
From an investment standpoint, I purchased Starbucks’ stock and am long on the stock. Meaning, I’m betting that the stock has room for growth.
Although, it’s dividend yield is slightly lower than it’s peers, I still think they are a great company to own a piece of.
They continue to innovate by testing new products, markets, and technology. You can clearly see them trying new things. That’s what I like to see as an investor.
By the way, I’m writing this article while sitting at a Starbucks. I also ordered my drink through the app, which I had to reload with more money to pay for my delicious grande coconut mocha macchiato.
Cheers to a fascinating digital future.
DISCLAIMER: I own shares of Starbucks stock. This article is not an advertisement for the company, but an example of trends I’m observing. I’m a technology and business geek that’s fascinated with companies who imbed digital to their strategy and study the execution; monitoring it’s success and failures. All Opinions and Statements are MINE.