A few quick takes on the new Starbucks layout in SoHo.
During the Starbucks earnings call last week, Chairman, President and Chief Executive Officer Howard Shultz encouraged listeners to check out the new design of their Spring Street location in SoHo. For those of you who haven’t had the chance, see the photos below. For me, the layout certainly had more of a “coffeehouse” feel than the typical Starbucks. Cliff Burrows said on the 2Q10 Earnings Call that this location is a great example of the “more comprehensive refresh” that Starbucks is carrying out.
In addition to the new interior, the Spring Street location was also heavily promoting Clover coffee which, paradoxically, I was told takes longer to prepare but hasn’t increased wait times on average. While I didn’t get a lengthy explanation of this reasoning, the spacious bar area may help reduce congestion and allow customers seeking a convenient morning cup of coffee to get through the store at a reasonable pace. Of course, this may not be the case at less spacious stores.
Rory Green
Analyst
Howard Penney
Managing Director