Media Contact
Adam Allington
Starbucks is planning to cut another 900 corporate jobs and close some of its stores in the U.S. and Canada, as the coffee chain approaches the one-year mark of its “Back to Starbucks” turnaround plan.
Alex Susskind
Associate Professor of Food and Beverage Management
Alex Susskind, a professor of food and beverage management at Cornell University’s Nolan School of Hotel Administration, feels the decision to improve the in-store experience is the right move.
Susskind says:
“What brought Starbucks to the forefront of their guests’ minds and wallets was the idea of Starbucks being a ‘The Third Place.’ That is, a place to hang out, relax, and engage with others outside of home (The First Place) and work (The Second Place).
“The pandemic changed that dynamic by blurring the lines between home and work, which made the Third Place a difficult sell to guests. People didn’t give up Starbucks, they just got used to consuming more takeout and delivery experiences in place of hanging out. As a result of this shift, the in-store experience became more transactional rather than relationship-based. Guests now are craving more experiential elements again and this move serves to address that need.
“With any shift in consumption comes the need for readjustment of business models. Reallocating resources from corporate functions to in-store experiences is the right move to help Starbucks regain their position as the ‘Third Place.’”
