Morning Brew - ☕ Sbuxing the trend

Starbucks’s Inclusive Spaces Framework.
March 07, 2024

Retail Brew

NewStore

Hey, what’s up. In a move that could change the game for hungover, cash-strapped college kids, Applebee’s and IHOP could be joining forces permanently, and their parent company Dine Brands has already experimented with eight locations across the globe. This might be the biggest crossover event since Taco Bell’s Doritos Locos Taco, so we’ll make sure we’re on top of it.

In today’s edition:

—Katishi Maake, Kristen Parisi, Andrew Adam Newman, Jasmine Sheena

STORES

New look, same brews

Starbucks coffee cup with speed lines like it’s moving forward really fast next to a menu with “2.0x speed” selected to insinuate the cup is going double sped. Francis Scialabba

Starbucks has introduced new accessibility features for disabled employees and customers that will be folded into the company’s larger retail footprint expansion over the next few years.

Starbucks unveiled a new store design last month at an opening in Washington, DC’s Union Market. The company said it hopes the concept, known as the Inclusive Spaces Framework, will make the store more accessible to disabled customers, and that other retailers will use the framework to guide their own store accessibility.

The new accessible elements include:

  • Order status boards so deaf and hard of hearing customers can see when their order is ready.
  • Lower counters to help wheelchair users easily grab their drinks.
  • Power doors, making entrance easier for customers with mobility aids or limb differences.
  • Acoustics that dampen background noise, which can help customers with sensory sensitivities and people with hearing aids.
  • Wider, clear pathways throughout the stores, allowing customers to easily move around.

The new framework will be implemented into all new and renovated US Starbucks stores moving forward, and is the company’s latest effort to make the store experience more inclusive. It will also be open source as a means to advance accessibility throughout the retail industry, the company said.

Keep reading here.—KM, KP

     

PRESENTED BY NEWSTORE

What a shopper wants

NewStore

Wish you could see inside shoppers’ heads and know what they really think? Well, here’s a sneak peek courtesy of NewStore—no X-ray vision required.

Hot off the presses, it’s the 2024 Omnichannel Leadership Report. This doc sizes up 700 different brands in 10 countries and focuses on the online, mobile, and in-store shopping experience, all from the customer’s perspective.

Download your copy of the report to get valuable insights on:

  • the leading omnichannel brands
  • the current state of omnichannel capabilities
  • a deep dive into the customer shopping experience overall

Dig into the deets to see how digital transformation can take your biz to the next level.

FOOD & BEV

Green party

Sweetgreen salad bowl Francis Scialabba

Greens are a staple of the menus at both Cava and Sweetgreen, and green is what both fast-casual restaurants seem to be rolling in, according to recent earnings reports. And their growth is all the more noteworthy because the economy appears to have stymied the broader fast-casual category.

Feta business bureau: Cava’s Mediterranean menu is not, to be sure, pita-ing out; the chain’s Q4 revenue grew 52.5% YoY to $175.5 million, thanks in part to opening 19 restaurants during the quarter, for a total of 309.

Even more dramatic was growth for the whole of 2023. Revenue increased 59.8% over 2022, to $717.1 million.

Sweet greens are made of this: At Sweetgreen, Q4 revenue grew 29% YoY to $153 million. That growth came largely from price hikes: Of the 6% YoY increase in same-store sales, Sweetgreen attributed 5% to raising menu prices and just 1% to an increase in traffic in its restaurants.

For the full year, revenues increased 24% over 2022, to $584 million.

Healthy growth: A recent report from Placer.ai noted that restaurant visits slowed overall in 2023, as Cava and Sweetgreen’s increased.

Keep reading here.—AAN

     

MARKETING

TV winner

Walmart and Vizio logos together Francis Scialabba

When rumors that Walmart might acquire TV purveyor Vizio began circulating online in February, one predominant question was: why? The retailer already has an expansive retail media network, not to mention its own line of TVs (called Onn) and a preexisting partnership with Vizio competitor Roku.

Late last month, the rumor was proven true: Walmart is buying the company for approximately $2.3 billion. Marketing Brew turned to a few streaming analysts to get their takes on what the acquisition could mean for Walmart’s ad business and the CTV space as a whole.

Keep reading here on Marketing Brew.—JS

     

TOGETHER WITH LTK

LTK

Win their hearts. Ready to take things from “like” to “love” with your consumers? The LTK Most Loved white paper will show you how to do it. It lays out the elements that win the LTK Most Loved awards for top brands, with tips and tricks on winning consumer hearts. Get the insights.

SWAPPING SKUS

Today’s top retail reads.

Pandora’s box: Jewelry behemoth Pandora is very much worldwide, but the company is implementing a new growth and marketing strategy that’s heavily focused on new product design. (Business of Fashion)

Lisan Al Gaib: For those unaware, Dune: Part Two has a very unique look when it comes to costume design and aesthetics, and several fashion brands seem to be inspired by it. (Glossy)

Come together: Everyone knows about Nerds candy, but in 2020 the brand’s Gummy Clusters product skyrocketed in popularity and is now the top dog when it comes to Ferrara’s portfolio of sweets. (Modern Retail)

Crack the omnichannel code: Learn about the state of omnichannel retail in NewStore’s new report. See how digital transformation can help you level up your biz + create a better customer shopping experience.*

*A message from our sponsor.

JOBS

Are you looking for your next career opportunity (either a full-time role or a seat on a board of directors)? View hundreds of confidential jobs in the retail industry on ExecThread. Retail Brew subscribers can skip the application review and instantly join ExecThread for free.

NUMBERS GAME

The numbers you need to know.

No one likes to get scammed, and financial institutions and companies across the board need to make sure their customers won't.

When it comes to physical spaces, mixed-use developments are increasingly popular, and it turns out management companies might benefit from ensuring IRL banks are part of the picture when constructing their portfolios.

FICO released new survey data from 1,000 Americans on how their banking experiences need to be managed and improved, and things like fraud and identity protection came out on top when it comes to maintaining trust with customers.

  • A majority of consumers (69%) said fraud protection ranks among the top three considerations when selecting a financial services company.
  • Nearly the same number (65%) said services from brick-and-mortar banks are still valuable.

The world is increasingly more digital, but when it comes to banking and finances, consumers are less willing to take risks: 28% of respondents said that apps are useful in finding information and advice. That figure is 24% for websites. On the other hand, 65% said face-to-face interaction when seeking advice is one of the main perks of banking at a branch.

  • And although 37% are more likely to open a digital account, according to FICO, roughly 25% said they’d ax plans to open an account if identification took too long or was too cumbersome.

“Financial institutions must work harder to meet customers where they are—whether in person or through digital and in-app interactions,” Adam Davies, VP of product management at FICO, said in a statement.

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