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How Starbucks Recaptured the Coffee Throne

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And what's next for America's coffee giant?

Just a few years ago, in 2008, Starbucks announced it was closing 600 of its U.S. locations. Business was down, and by 2010 the coffee shop that created the cultural phenomenon known as the Frappuccino suddenly seemed boring and out of date. But by employing three major initiatives, the lagging brand turned itself around.

Watch above as Eater Animated breaks down the turnaround:

  • First, Starbucks began offering a higher quality of coffee in a newer setting, in what it calls its Reserve stores — remodeled units that offer more precise brewing methods and more nuanced drinks. New, much larger locations called Roasteries service the Reserve stores with single origin beans.
  • Second, the company introduced its Evenings program. A menu of beer, wine, and small savory bites is meant to attract customers who don't care to drink coffee after dark.
  • Third, Starbucks invested in technology and introduced an industry-leading order and payment app.

An extension of Starbucks' app are its new trials with delivery, currently underway in Seattle and New York City. Only time will tell if consumers will continue to want their coffee drinks and pastries delivered. What is clear is that America's coffee giant is not afraid to innovate to save its brand — and bottom line.

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