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# Starbucks Going Upscale, Downscale With New Retail Stores

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<!-- video src="https://cdn.jwplayer.com/manifests/yB9KCcNj.m3u8" -->
## Video: Starbucks Going Upscale, Downscale With New Retail Stores

[Watch (HLS stream): Starbucks Going Upscale, Downscale With New Retail Stores](https://cdn.jwplayer.com/manifests/yB9KCcNj.m3u8) (1:42)

![Starbucks Going Upscale, Downscale With New Retail Stores](https://cdn.jwplayer.com/v2/media/yB9KCcNj/poster.jpg?width=720)

_Published 2014-09-05. Starbucks on Friday announced it will introduce two types of retail locations. An upscale roastery and tasting room for its rare Starbucks Reserve line, and smaller, alternative stores for speed and convenience._


---

Jul 27, 2023 5:12 PM UTC

---

## More From This Series

[All Videos](https://time.com/video/)

[Starbucks Closes Stores And Expands All In The Same Day](/video/6GlCNhWg/)

### Starbucks Closes Stores And Expands All In The Same Day

[Google's First Retail Store Opens in London](/video/r61XSR96/)

### Google's First Retail Store Opens in London

[The Starbucks Effect](/video/RUCsErEZ/)

### The Starbucks Effect

---


## Transcript

As Starbucks looks to expand its ever growing retail business, the company's deciding its best bet is to head in two directions. First, Starbucks is setting its sights on an upscale experience with the introduction of its 15, 000 square foot Starbucks reserve grocery and tasting room. The company says, the retail location will feature roasting, coffee education, and increased availability of their fast growing, highly successful. Small lot Starbucks reserve coffees. Starbucks reserve is the company's premium line of rare small batch coffee varieties. By creating this dedicated space, the coffee company says it will be able to double it's roasting capacity.

In other words, Starbucks will be able to offer up more of it's small batch limited run coffee. USA Today quotes a company spokesperson who says the coffee company hasn't yet decided what its reserve menu will be. On the other end of the spectrum, Starbucks says it will also be focusing its attention on smaller alternative store footprints. The Wall Street Journal notes these smaller stores will have a narrower menu, allowing the location to focus on speed and convenience. The outlet says Starbucks is expected to rely heavily on its digital payment and mobile ordering services. The company says there's money to be made from drive thru stores because sales growth has been higher than average at these locations.

Fortune suggests the company is preempting the retail and in- store traffic declines larger companies are currently experiencing. Wal- Mart and Best Buy have opened smaller stores in recent years, it is notable Starbucks is thinking about how it can bolster sales at stores. That are meant to serve customers at a faster pace. The company is on track to bring 1600 new locations by fiscal year 2015

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