Starbucks Drive Up launch

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Apr 13, 2013
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956
I'm not as worried about the diva drive up having to learn something new as I am about the payroll/logistics of this, especially since SB is far from the drive up exit. I have zero faith that we'll get the hours we need to implement this well, and I'm skeptical that it will be all that profitable. We're already their personal shoppers, may as well do their laundry for free too.
It’s a loss leader. Gotta drag more souls into our hell pit.

oh wait…

uh

it’s a loss leader to get people to come and enjoy our highly efficient and well staffed, by the happiest of people willing to go the extra mile, drive up experience. 👍
 

Xanatos

Starbucks TL
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Jun 22, 2013
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It’s a loss leader. Gotta drag more souls into our hell pit.

oh wait…

uh

it’s a loss leader to get people to come and enjoy our highly efficient and well staffed, by the happiest of people willing to go the extra mile, drive up experience. 👍
Do you mean Starbucks is a loss leader or just drive up in general? Drive up is definitely a loss leader but Starbucks is very profitable.
 
Joined
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Messages
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Do you mean Starbucks is a loss leader or just drive up in general? Drive up is definitely a loss leader but Starbucks is very profitable.
the Starbucks drive up thing. Bri Bri knows it's going to burn but it will bring forth the Karens in massive attack waves and we will sell the the sell
 

Xanatos

Starbucks TL
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the Starbucks drive up thing. Bri Bri knows it's going to burn but it will bring forth the Karens in massive attack waves and we will sell the the sell
A loss leader is something that 1) we lose money on, but 2) causes people to spend more money on other things. This is the opposite.

Starbucks via Drive Up is 1) profitable and 2) shouldn't cause people to spend more money on other products. I guess it's possible that Starbucks could be the tie breaker for choosing Target drive up over Walmart drive up, so it could bring some extra people to Target.
 

Xanatos

Starbucks TL
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Jun 22, 2013
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Why is drive up a loss leader? I would tend to think the opposite.
I mean the service itself. We literally make $0 for the extra service that we provide to the guests. In fact, people won't come into the store and get tempted to buy all kinds of extra things that they don't need, so we could even be losing money on it. However, it does bring more people to shop at Target, which increases the profit overall when you compare it to a world where Target does not provide this service.

If we charged a fee for the service, I wouldn't consider it a loss leader. The same thing goes for any other online purchase, whether it is store pickup, ship to store, ship from store, or completely online. We are spending extra payroll and we are missing out on sales. But we'd be bankrupt in no time if we were 100% brick and mortar. We just can't compete without it.
 

DBZ

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And how are we to handle it when Starbucks is out of something? Or when we can't make frappes because someone threw...I mean dropped...the pitcher they use to make fraps?
 
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A loss leader is something that 1) we lose money on, but 2) causes people to spend more money on other things. This is the opposite.

Starbucks via Drive Up is 1) profitable and 2) shouldn't cause people to spend more money on other products. I guess it's possible that Starbucks could be the tie breaker for choosing Target drive up over Walmart drive up, so it could bring some extra people to Target.
Your point #2, if it doesn't cause people to spend more, there isn't a need for it.
 

Xanatos

Starbucks TL
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Your point #2, if it doesn't cause people to spend more, there isn't a need for it.
But it IS the thing that people are spending more on. It's like taking an existing thing (a drive up order) and asking guests "Hey would you like to also purchase this highly profitable item?" Starbucks in drive up is adding on profit, which is the opposite of a loss leader. It's like asking guests to donate $1 to Target shareholders when they do a drive up order.
 

DBZ

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Milk is the normal industry loss leader. Might be why dairy is at the back in most stores even 711s

There are a few things that bring a person IN to the store. Milk, diapers, toilet paper, etc. None of those things are profitable, but there is a shit load of money in them. No one comes in the store and buys just those items. Well there is that one guy. You have to walk past all that high mark up stuff. How many times a day do we hear "I came in for one thing". At starbucks, we charge like $6-8 for less that 24 oz of milk.
 
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There are a few things that bring a person IN to the store. Milk, diapers, toilet paper, etc. None of those things are profitable, but there is a shit load of money in them. No one comes in the store and buys just those items. Well there is that one guy. You have to walk past all that high mark up stuff. How many times a day do we hear "I came in for one thing". At starbucks, we charge like $6-8 for less that 24 oz of milk.
We have a Starbucks right near the entrance but it's usually because the moms need a coffee or they get their kid a treat to keep them quiet during shopping.

Plus the demographic for Target/starbucks shoppers is nearly a perfect circle, so
 

redeye58

Hasta Ba Rista, Baby!
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offtopic. Closing TL asked me to pull dairy. It is UNHOLY the amount of dairy we sell. I filled up 3 3 tiers, the top row of a Uboat. and i was STILL PULLING MILK. NOTHING ELSE!
Tsk, we take a flat of crates to restock our milk.
For all the folks switching to non-dairy there's still a hella bunch still drinking cow juice.
 

redeye58

Hasta Ba Rista, Baby!
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Jun 9, 2011
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The thing that concerns me is when we run out of an ingredient & have to enter that in the system IMMEDIATELY to prevent additional orders because *substitutions are NOT allowed*.
We're in stock better than most other stores but we sometimes run out of some items before the order arrives.
I can see what a mess it's gonna be when we run out of a popular item & have to go thru & cancel a bevy of drinks :(
 
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