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Why Starbucks is Actually a Bank
Itâs pumpkin spice latte season and whether itâs highly adored or mocked for being âbasicâ, Starbucks is undeniably the most recognisable commercial coffee shop out there. However, you may not realise that Starbucks is also a bank, and they make more money doing so than selling coffee. Let me explain: đđ
The Brew:
In the mid-2000s, Starbucks was doing well, and it expanded with thousands of stores worldwide.
However, it had grown too big too fast and became sloppy.
Then, the 2008 Financial Crisis hit hard and people were reluctant to spend on things they didnât need like frappuccinos.
Starbucks then brought back Howard Schultz as CEO.
Shultz did 2 things to put Starbucks back on track, refocus on employee training for better customer satisfaction and introduce the Starbucks Card.
The Bank:
With the Starbucks Card, customers add money to their Starbucks account.
Instead of paying with cash or card, customers pay with their app and earn extra points by depositing & spending.
More people made mobile payments on the Starbucks App compared to ApplePay in 2018.
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