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September 30, 2024
How Does Starbucks Reserve Affect the Brand?
Unknown to many, Starbucks has an exclusive group of special locations across the world known as “Starbucks Reserve” roasteries.
On the official Starbucks Reserve website, the brand describes this concept as “a selection of the most extraordinary coffees Starbucks has to offer. It’s where we push our own boundaries of craft, developing a unique roast for each individual lot before experimenting with coffee as an art form — brewing, aging, infusing and blending it into imaginative and often surprising creations.”
Currently, there are six Starbucks Reserve Roastery locations: Seattle, New York, Chicago, Milan, Tokyo, and Shanghai. The company also has separate Reserve stores, with its website listing two in New York and one in Seattle.
According to Tasting Table, Starbucks opened its inaugural Reserve Roastery in Seattle in 2014, marking the brand’s birthplace. This expansive 15,000-square-foot venue was designed to provide an “immersive experience for customers to learn more about the journey of coffee beans from farm to cup and sample firsthand differences in beans and roasting processes.”
As reported by the outlet, the unique flavor of Starbucks Reserve coffee beans comes from the meticulous care taken at each stage of their journey. When they arrive at a Reserve Roastery, the small-lot coffee beans are green and unroasted.
Furthermore, only beans that have proven themselves under the expert hands of Master Roaster innovators receive the Reserve designation. These artisans thoughtfully conceptualize, experiment with, and create a “custom blend specific to the beans’ characteristics and origins.” There’s also a host of techniques involved in sourcing, handling, and brewing that contribute to the overall experience.
By paying attention to unique aspects such as terrain and elevation, Starbucks coffee experts source beans from small, family-owned farms and historic plantations. Next, they collaborate with growers to support successful crops, resulting in distinctive flavors. An example is the limited-edition Starbucks Reserve Zambia Peaberry Terranova Estate, known for its concentrated flavor from single peaberry beans that offer a unique roasting experience.
Recently, Starbucks announced its first Reserve-only store in Seoul, South Korea, named Jangchung Lounge R, marking the 10th anniversary of Starbucks Reserve. The store, a transformed 1960s house, highlights the company’s expansion efforts.
Additionally, Starbucks Reserve has introduced its autumn menu at many of its locations, featuring pumpkin spice offerings like the Pumpkin Spice Affogato and Pumpkin Spice Espresso Martini, along with seasonal treats such as the Pumpkin Croffle. Customers can also participate in the Ultimate Pumpkin Spice Experience, a guided tasting workshop available at select locations.
Starbucks Reserve Roastery Tokyo has launched its own autumn menu available until Oct. 31, featuring exclusive beverages. New offerings include the Autumn Chocolate Latte, Hojicha Cashew Nut Tea Latte, and Autumn Harvest Punch. Returning favorites are the Teavana Cream Soda Spice Apple Cider and the Hojicha Black Roasted Shichimi Chocolate.
“Starbucks began its journey over forty years ago to make premium arabica coffee accessible to all while fostering a culture of human connection,” the company explains on its Reserve website. “Starbucks Reserve is our commitment to push even further, scouring the world for its most exceptional beans while evolving the coffeehouse experience to something surprising and multi-sensory.”
For customers who aren’t near one of the handful of Roasteries or Reserve stores, the company offers in-season Starbucks Reserve coffee at over 3,200 locations across the U.S. and Canada.
Currently, the new Starbucks CEO has revealed new plans for the brand, but has not mentioned anything about Starbucks Reserve or having a primary flagship.
Discussion Questions
How does the Starbucks Reserve concept affect the overall brand perception of Starbucks, and does it enhance or dilute its core identity among customers?
In what ways might the exclusive offerings at Starbucks Reserve locations influence customer loyalty and perceptions of value?
As Starbucks invests in its Reserve line, how might consumers perceive this shift toward premium products?
Poll
Loading …BrainTrust
Gary Sankary
Retail Industry Strategy, Esri
Brad Halverson
Principal, Clearbrand CX
David Naumann
Marketing Strategy Lead - Retail, Travel & Distribution, Verizon
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In the broad scheme of Starbucks’ overall business, Reserve is very small. It certainly doesn’t harm the brand, but neither is it a solution for the problems that exist in Starbucks’ mainstream cafes – resolving which now must be the primary focus of the business. The other point about Reserve is that its potential has always been limited: it is an expensive business to run, and it only works in certain big locations. This is why the company has scaled back its one-time ambition to open a thousand Reserve stores. Basically, Starbucks needs to fix the core and not dabble on the periphery – but maybe it can apply some of the thinking from Reserve – especially in terms of the great foodservice experience – to its average cafes.
If Nike can put up a few flagship stores in major world cities, why shouldn’t Starbucks?
Will they significantly boost corporate profits? Not directly. They are costly to operate and not very numerous. Starbucks Reserve units can help elevate overall brand equity, however, and that is a thing.
Sorry, but – seriously! – how can we ask if a brand is (somehow) being hindered by something so described ? Conceivably it could be helped, but only if a very targeted audience is the part of the equation.
Clearly Starbucks believed that the Reserve concept would be valuable for the brand. Perhaps they hoped for an effect like those of classic corporate hero stores. They haven’t, though, hit the radar of most people. Even having studied Starbucks considerably lately I was only vaguely aware of the stores. It could be they need to promote them — make them important or close them down. If I had more experience with this store, I might find other answers — perhaps they should open more of them. That said, from a distance I doubt that’s the right answer.
Starbucks Reserved Roasteries are Starbucks’s flagship stores. How in any way could they hinder the brand? #SMH
With only six Starbucks “Reserve” locations in the universe, it’s totally a non-factor. The six locations will have zero affect on the brand’s image anywhere in the world other than within a mile or two of each location. Db
This is a solution looking for a problem. Does this really add value? I doubt it. As such, Starbucks needs to stay focused on its core competencies: Coffee, community, and chat.
Was this written by AI? And was there a point to it? really reaching for content here guys. It’s an amazing brand operating with a new leader, and the reserve are their flagship.
There’s one by me in Chicago, and it’s mostly for tourists, it’s not really an entity that builds the brand among locals in the same way a traditional flagship would. I think it’s inconsequential to its core brand for mainstream consumers, and may add a bit of reach for global tourists that aren’t as familiar with the brand.
Since the Starbucks Reserve concept is limited to few locations, it doesn’t have a significant impact on Starbucks’ oveall brand perception. However, for those customers that visit the extremely impressive Starbucks Reserve location, it will likely elevate the brand perception of Starbucks.
Starbucks’ Reserve is a nod to their origin as a boutique coffee shop. Hard to remember, but there was a time when that green mermaid was a special treat because the carts or stores were hard to find. Now, as mentioned here before, Starbucks is a coffee production powerhouse with stores on every corner and where drinks roll off the espresso machines by the millions, every hour.
Reserve reminds people that fine coffee is still a priority. Will it make a difference in improving Starbucks’ sales or correct the litany of concerns the chain is experiencing these days? No, not even a little. But it’s a nice touch for true coffee aficionados who are willing to spend $20 for a few ounces of premium coffee beans. The problem is most aficionados are in the small local shops enjoying their premium beverages, often with a side of smugness.
I think the whole concept of Starbucks Reserve is great. And I think the article answers its own question in the opening sentence and paragraph. “Unknown to many…”. They don’t pretend to be for a broad audience. Six of them in high profile cities across the globe is not overreach. And then, “It’s where we push our own boundaries of craft…”. Every brand needs to be somehow pushing their boundaries. They need to test their evolutionary opportunities. Keeping in mind of course, that just because something works in a Reserve location doesn’t mean it will work in suburbia. So there is a whole different kind of boundary testing that needs to happen in your local store. But at the end of the day, the idea of the Reserve stores elevate the brand in my mind. What other fast food idea could execute a ‘Reserve’ concept…??? McDonald’s…??? Nope. Dunkin’ Donuts…??? Nope.
Great points, Jeff. Reserve is not intended to be in every city, everywhere. And the other brands you mention can’t or won’t go as far as what Reserve does.
This is another example of the “flagship store” concept, and in this case I think it helps Starbucks from a branding standpoint. Of course you need to live near one or visit one in order to appreciate it, however I believe that these stores are a net plus for Starbucks.
Now if they could just build one in Raleigh/Durham…
Starbucks Reserve plays an important experiential role in conveying the company brand. Reserve locations tell stories around where and how beans are sourced, how coffee should taste when made at its peak, and made in the right equipment. It’s a place where consumers can discover their true tastes and likes. And it’s also a good place to test new sandwiches and food tastes for other locations.
Reserve reminds customers that all forms of coffee, whether drip or espresso based, that the WHY matters. Without this, consumers will resort to whoever has lower priced coffee.
Starbucks has evolved into something quite different from its original concept. Starbucks Reserve appears to be an effort to return to that special coffee house where people could enjoy a premium cup of coffee in a comfortable and somewhat unique environment. This is a place that Starbucks aficionados want to experience. In a way, this is similar to a flagship store. It reminds me of what RH (Restoration Hardware) created in Chicago with its studio, showroom, and restaurant. It’s a special version of the brand and can’t be repeated in most markets other than large cities in premium locations. The PR around Starbucks Reserve might be worth it. It’s a fun concept, and I hope it gives the Starbucks decision makers everything they hope for.
I absolutely love this. I see this as enhancing the overall brand – creating a destination for customers to visit – as opposed to the regular outlets that are more about convenience.
Brands attempting to move up-market is nothing new – it is fantastic to see this – key will be to keep these exclusive – and not have one in every town and city. As long as consumers understand that the product is more expensive – and they potentially get higher service – it will enhance loyalty.
The possibilities of business expansion here are interesting. It offers the opportunity of having guest coffees from the Reserve available at regular outlets – effectively as a limited time promotion. If a customer likes a particular coffee they have tried, Starbucks could even sell the beans online to aficionados to be enjoyed at home.
Starbucks Reserve provides a deep, rich brand experience that goes well beyond what traditional stores can deliver. It’s become a destination, similar to what iconic brands like Coke or even more crafted brands in the spirits industry have done around the world. Thinking it’s just relevant to those “in the area” is short sighted. The real power of a unique brand experience is social media content and word-of-mouth. With over a quarter million followers on IG globally, and the countless number of people who post from their experiences around the world on their individual accounts, the benefit to Starbucks brand is exponentially larger than the universe of visitors. Reserve is a no-brainer. I do think, however, that they could benefit from plussing up their LSM to draw in local businesses and tourists more directly. But, again, that’s not the real point.