[비즈한국] It has been confirmed that Starbucks is preparing to open a takeout-only store within the Yangjae Station Shinbundang Line subway terminal. This will be their second subway station location, following the Gangnam Station Shinbundang Line store, which opened in 2022. As Starbucks has long touted "culture and space" as its core management philosophy, it has historically maintained a conservative stance on opening takeout-only outlets. Consequently, the opening of this Yangjae Station store has led to speculation about a potential shift in Starbucks' expansion strategy.
Takeout-only Store in the Shinbundang Line Passageway at Yangjae Station
Starbucks is preparing to open the Yangjae Station Shinbundang Line branch in the underground passageway of the Shinbundang Line at Yangjae Station. Located in the underground connecting passage where commuters can transfer from Line 3 to the Shinbundang Line, the store will operate exclusively for takeout. There are no tables in the store, and it is designed solely for takeout orders. The Starbucks Yangjae Station Shinbundang Line branch is scheduled to open at the end of this month.
This marks the second time Starbucks has opened a store inside a subway station. In 2022, Starbucks introduced its first subway station store, the Gangnam Station Shinbundang Line branch. It garnered significant attention for being a specialized takeout store and the first of its kind located inside a subway station.
Starbucks had previously introduced takeout-only stores in specialized commercial areas such as baseball stadiums, hospitals, and airports. However, the Gangnam Station Shinbundang Line branch was the first instance of a table-less, takeout-only store being opened in a general commercial district.
Following the opening of the Gangnam branch, possibilities were raised that similar types of stores might be added; however, Starbucks maintained that there were no plans for further expansion. While the Gangnam branch was opened to enhance customer convenience, the sentiment was that there were no plans to expand takeout-only stores, as Starbucks' philosophy centers on "selling culture and space, not just coffee."
However, with Starbucks launching another takeout-only store inside a subway station just two years after the Gangnam branch, attention is shifting toward the reasoning behind this expansion.
A Starbucks representative stated, "The Yangjae Station store is located in the mall-like commercial area formed within the station. We are preparing it as a customer-tailored store for the convenience of commuters moving busily during rush hours," adding, "This is one of the common store formats operated by Starbucks globally, and we plan to pilot various stores in Korea tailored to the characteristics of different commercial areas and customer usage."
Changing Operations and Expansion Strategies to Improve Profitability
Starbucks seems to be focusing on improving profitability recently. The company raised beverage prices twice, in August and November of this year, and significantly reduced services such as discounts and coupon offers under the guise of "customer benefit readjustment." Since April, they have also started delivery services through the Baemin (Baedal Minjok) app. While Starbucks had operated its own delivery service via its app since 2021, it partnered with Baemin this year to expand its delivery capabilities and competitiveness in the market.
In October, they began a pilot run of the subscription service "Buddy Pass," and officially introduced it in December. The Buddy Pass allows customers to pay a monthly fee of 7,900 KRW to receive a 30% discount on handcrafted beverages purchased after 2 PM. A Starbucks representative explained, "The response to the Buddy Pass among regular customers is positive. We are seeing a trend where customers who used to visit in the morning are returning in the afternoon."
Moves that contradict the global principles they have long upheld are also drawing attention. Since the end of last year, Starbucks has been expanding the introduction of vibration buzzers (pagers) in its stores. Previously, Starbucks strictly adhered to a "calling system" (where baristas personally call out the customer's name or order when a drink is ready), following global guidelines meant to foster a sense of connection between customers and partners. Industry experts interpret the introduction of vibration buzzers as a strategy to increase sales by enhancing customer convenience, as many customers had requested them. Recently, the company has also been considering the introduction of kiosks in stores to reduce labor costs.
A Starbucks representative explained, "The introduction of kiosks is currently under review, but nothing has been finalized," adding, "The introduction of vibration buzzers is intended for operating customer-tailored stores. It does not mean that the Starbucks sentiment is disappearing."
Starbucks expects to reach 3 trillion KRW in annual revenue this year. Cumulative revenue for the third quarter reached 2.2819 trillion KRW, a 6.2% increase compared to the same period last year (2.1485 trillion KRW). Having recorded 2.9295 trillion KRW in revenue last year, reaching the 3 trillion KRW mark this year appears highly likely.
However, compared to the growth in revenue, improvement in profitability has been slow. Starbucks' profitability has fallen significantly since 2022. Operating profit in 2022 was 122.4 billion KRW, which is about half of the 2021 figure (239.3 billion KRW). While it increased by 14.22% last year to 139.8 billion KRW, it has yet to recover to 2021 levels.
The takeout-only stores can also be interpreted as an expansion strategy with profitability improvement in mind. Kim Dae-jong, a professor at the Sejong University School of Business, analyzed, "In terms of profitability, small-scale, takeout-only stores can be a good choice. These days, it is necessary to meet customers by opening many small-scale locations. Rather than focusing on large stores, the direction should be to open in various commercial areas, including subway stations."
A Starbucks representative explained, "We are focusing our store opening strategy on 'customer customization.' While expanding special stores, we are planning tailored locations for our customers. The recent expansion of stores selling cocktail beverages is also in line with this intention."