Starbucks CEO Howard Schultz said this week that they are working on an exciting new digital initiative to update their industry-leading digital platform around coffee and loyalty in innovative ways. This new digital initiative is expected to be announced at the company's Investor Day event on September 13.
This year, the company announced plans to enter the Web3 space, stating that its NFTs (Non-fungible token) would not only serve as digital collectibles, but would also give their owners access to exclusive content and other benefits.
Schultz stated that he believes the digital initiative will help Starbucks improve its current reward participation model and also strengthen emotional bonds with customers, and that a wider rewards program will be offered in the coming days.
In the current rewards program, customers earn stars by shopping in the app or at Starbucks stores, which can be turned into tangible rewards such as free drinks. According to the program to be developed, NFTs (Non-fungible token), which are referred to as digital collections, will somehow become a part of this loyalty program. Customers can acquire coffee-themed NFTs (Non-fungible token) through daily purchases, potentially attracting more people to the web3 ecosystem.
Starbucks has also been in the blockchain space for more than four years with a traceability project called "bean to cup" to support smallholder farmers. It is still unclear how customers, employees or investors will react to this latest Web3 expansion. But Starbucks CEO Schultz sees the initiative as part of a larger transformation planned for the company.
On the other hand, Starbucks posted strong quarterly earnings above Wall Street expectations despite macroeconomic challenges. The company announced revenue of $8.15 billion versus expected revenue of $8.11 billion, and earnings per share came in at 84 cents, beating expectations of 75 cents.