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Starbucks Reserves An A+ Strategy
How a coffee chain enhanced brand image via an elevated restaurant concept
Ali Kaltman
January 26, 2025
Brand: Starbucks
Campaign: Starbucks Reserves
Read time: 5 minutes
💬 Overview 💬
Have you ever gone out of your way to go to a Starbucks Reserve?
I have.
During my first trip to Seattle, I actually didn’t go to the first ever Starbucks, but rather the Reserve.
In NYC while working on an alcoholic coffee brand (RIP Hard & Simple Cold Brew), we worked from the Chelsea Starbucks Reserve as a source of inspiration.
Would we ever do that for a normal Starbucks?
Likely not.
Starbucks Reserve is a game-changing concept that I’m shocked more chain restaurants haven’t copied.
So how has Starbucks been able to elevate their entire brand through a few key store enhancements?
Let’s get into it…
💙 The Branded Moment 💙
In 2014, Starbucks opened its inaugural Reserve Roastery in Seattle.
The 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.”
To put it simply, Starbucks Reserve aimed to elevate Starbucks’ image from a mainstream coffee chain to a coffee experience.
As the specialty coffee movement gained momentum, Starbucks needed to re-shape its brand image.
Starbucks identified this shift as both a challenge and an opportunity to deepen its connection with coffee aficionados while experimenting with new formats and flavors.
How did they do this?
They built a strategy comprised of 4 key levers:
1. Experiential Retail Spaces
Starbucks Reserve Roasteries are NOT coffee shops.
They are theaters. They are experiences.
Between open roasting areas, tasting flights, and guided tours, Starbucks created a sensory-driven experience to immerse customers in the craft of coffee.
(Also, to be CLEAR, a Reserve Roastery is where they both roast & serve coffee, whereas a Reserve Bar serves special limited edition products, but doesn’t roast the coffee on-site.)
2. Exclusive, Small-Batch Offerings
To further distinguish the Reserve brand, Starbucks introduced rare, small-lot coffee blends sourced from around the world.
These offerings allowed Starbucks to tap into the growing demand for artisanal and ethically sourced products, reinforcing the brand’s premium positioning and giving coffee enthusiasts a reason to return for unique, limited-time experiences.
3. Upscaled Branding & Design
The Reserve locations featured sophisticated design elements that set them apart from traditional Starbucks stores.
Sleek interiors, premium packaging, and elevated merchandising positioned Reserve Roasteries as upscale destinations.
They are also only found in the center of key urban markets.
And it’s helped Starbucks compete with your classic neighborhood coffee spot.
4. Innovative Menu Expansion
Starbucks uses the Reserve stores as testing hubs for new products.
In a space like the Reserve, customers are more receptive to trying new products, and in fact, it’s expected to see offerings different from other Starbucks.
This makes it the perfect testing ground for potential product expansions.
And the results speak for themselves…
💡 Results 💡
Starbucks has released that they want Reserves to be 20% of the Starbucks portfolio.
It’s clear that people are willing to spend more money at Reserves and it overall increases brand affinity / perception of quality for all Starbucks.
And the existence of Starbucks Reserves have done wonders for the Starbucks brand:
Revenue Growth: The premium price points for Reserve offerings have contributed to higher spend averages in Reserve locations.
Brand Perception: Starbucks Reserve has helped position the brand as not only a leader in mass-market coffee but also an actual, credible player in the specialty coffee world.
Customer Loyalty: Coffee enthusiasts can feel confident that they know where their beans are from, and they can feel confident that they’re drinking quality coffee every day, even when not in the Reserve.
New Innovation: Starbucks has seen numerous successful drinks & offerings come out of the Reserve including the Oleato and multiple pastries.
🎬 Take Action 🎬
How do people experience your category? Is there a story you’re not telling about your product or how it’s made?
Starbucks Reserve turned the Starbucks product story into a premium product experience.
What story is your brand currently telling and is there an opportunity to tell it through a better experience?
Also… how do you currently test innovations? Have you created an easy avenue for your customers to try new products in a low stakes way?
What’s New This Week
One new product I tried this week 👉 88 Acres Seed & Oat Bars - Delicious!
One new campaign I’m loving 👉 Abercrombie x White Lotus… and you’ll see me post about it on LinkedIn tomorrow 🙂
One new piece of content to watch 👉 It’s basically Super Bowl Ad Week!! Currently curious about Stella Artois’s David Beackham twin piece. Watch the spot here.
Brandkeeping
Quick note! Thank you to those baring with me as we braced the LA fires. It’s been a crazy few weeks. If you’re interested in donating, please check out this resource from LA List on how to get involved!
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And if you have a brand or campaign you want to spotlight, please reply directly to this newsletter.
Let’s chat!
See ya!
Ali
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