The coronavirus crisis has caused Starbucks to shift its real estate strategy
, have also honed in on the drive-thru channel specifically, perhaps indicating that the data analytics these deep-pocketed chains are gleaning point to a sharp pivot in consumer behavior. Additional research has supported this, showing that many consumers just aren’t ready to return to dine-in. According to a new study from Toast, for example, only 19% of consumers say they would be “very comfortable” returning to a restaurant immediately.
Essentially, less commuting means consumers will access the brand differently throughout the day depending on their trade area. Again, Starbucks is not alone in having to figure out what that means from a real estate perspective. What we know now is that the company is permanently closing 400 low-performing stores in North America in an attempt to answer that very question and in an effort to ramp up those more efficient formats.
“As we introduce a more efficient format with more productivity, we reduce the bulking that can at times occur in urban locations and unlock sales through that improved efficiency,” Grismer said. “Also, that more nimble asset allows us to gain a presence in areas we couldn’t before. And since it’s a smaller asset overall without a seating area, that enhances the fixed cost profile of the store, which further contributes to an improved margin profile.
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