Starbucks CEO Howard Schultz won't say what the Starbucks of the future will
look like.
Or taste like. Or even smell like.
But even with his company rolling in record profits and record sales, with
18,000 stores in 62 countries -- a time when it might seem like he could sit
back and enjoy the results of his 31 years with Starbucks -- he admits to having
gee-whiz plans on the drawing board. Not that the ultra-savvy innovator will
publicly discuss them in any detail.
"Sure, we're doing work now on the store of the future," says Schultz, whose
company's stock price is near an all-time high and whose market cap is around
$43 billion. "It is not only linked to the physical but the digital experience."
The store has not been built. There is no working model. And the project doesn't
even have a name. "You'll know it's a Starbucks store, but you'll know that
you'll be walking into a significant evolution," he says.
The parameters are wide but the central focus is very clear, he says: "If we
were competing with Starbucks, what would we do?"
No resting on laurels
Success, he says, means never standing still. That's a concept that all
innovators -- large or small -- must embrace, says Schultz. Many of the changes
to come to the Starbucks brand will be related to new technologies -- some of
which, like mobile payment, are already in motion. Many of the changes will be
related to health and wellness. And some of the changes will relate to Starbucks
as a broader consumer brand. In an exclusive interview, Schultz spoke candidly
with USA TODAY about being an innovator and icon -- and just how far he believes
he can stretch the Starbucks brand without breaking it.
"Our history is based on extending the brand to categories within the guardrails
of Starbucks," says Schultz, 59. But the key to success is to remain true to the
brand, he says, "and not abuse the trust people have by going off and doing
things not consistent with the heritage of coffee."
Starbucks has been burned -- more than once -- by going that latter route.
Starbucks quickly went in and out of the movie business. It tried selling an
adult-focused, specialized chocolate beverage that flopped. It even concocted a
carbonated coffee drink that failed.
"No one in America wanted to drink it," recounts Schultz. "We have tons of it
still lying around."
But here's the key: Failure didn't make Schultz innovation-adverse. Schultz has
never stopped pushing the innovation edges. Much innovation at Starbucks over
the next few years will be focused on health and wellness products. "You'll see
it in many forms," he says, declining to be specific. "Starbucks has a license
to participate in this."
Some of that innovation will be related to the recently acquired Evolution juice
brand -- which could stretch into categories beyond juice such as healthy foods,
snacks and beverages, Schultz says. But one of those categories will not be
vitamins, he adds.
Tech inspiration
The bulk of Starbucks' innovation over the next several years will be
technology-focused, Schultz says. Not surprising for a company that claims an
astounding 54 million Facebook fans globally.
"We are witnessing a seismic change in consumer behavior," he says. "That change
is being brought about by technology and the access people have to information."
