Howard Schultz, chief executive officer of Starbucks, on Wednesday announced a series of moves aimed at improving what he calls "the coffee experience" in its US stores, as part of his drive to revitalise the world's largest coffee chain.
The initiatives - ranging from new lower-height expresso machines to plans for the company's first loyalty programme - are part of a strategic shakeup at Starbucks by Mr Schultz, who resumed the post of CEO in January amid investor concerns over slowing US growth.
New initiatives in the US stores will include the introduction of a new blend of coffee named after the company's first store at Pike Place, Seattle, and the rapid roll out of the new low-level Mastrena machines - which allowing greater eye-contact with customers.
The new machines will be introduced into 30 percent of its more than 7,000 US stores by the end of the year, and into three-quarters of its stores by the end of 2010. The company also said it had acquired the Coffee Equipment Company, a small Seattle based company that makes innovative single-cup grinding and brewing machines for filter coffee, which will be introduced in selected stores.
Starbucks also announced its first rewards programme for regular US customers who use its stored-value cards. From April, registered card holders will receive free customised extra ingredients such as flavourings and cream.
It also launched its first online social-networking community called "MyStarbucksidea.com". The site is aimed at offering customers a forum for proposing and voting on new ideas for the chain that will be incorporated into its stores.
In an effort to strengthen its ethical credentials, Starbucks is also to expand an existing partnership with Conservation International, a non-profit group, to protect tropical forests by providing incentives to farmers not to clear forest for land.
The moves are a response to growing competition from similar chains such as Caribou Coffee and Peet's, while fast food outlets such as McDonald's and Dunkin' Donuts have also started expanding their lower-cost expresso coffee offerings.
In other areas, Mr Schultz said it will also expand into drinks and foods that are focused on health and wellness and explore new energy drinks as it pushes to improve its financial performance.
He also described opportunities for expanding the company's sales of packaged coffee and drinks through supermarkets and other outlets as a potential billion dollar business for the company.
The company has made a series of changes in top management, and cut back US store opening plans. It also closed all its US stores last month for three hours for a staff training session, as part of efforts to improve store service.
