Starbucks, the Seattle-based coffee giant, has entered the NFT market with the release of its first paid collection of non-fungible tokens. The NFTs, called “Journey Stamps,” were priced at $100 each and sold out in under 20 minutes.
The release is part of Starbucks Odyssey, a new membership program that promises to deliver immersive coffee experiences and exclusive perks to members.
Starbucks Moving into Web3 with a Bang
Those who purchased the Starbucks NFTs can use them to level up their tier in the program and gain additional benefits, such as access to virtual classes, merchandise, and even a trip to a Starbucks coffee farm. Purchasing an NFT also gives members additional “points” that they can use to level up their tier.
Starbucks isn’t the first corporation to enter the NFT market. Other big brands, such as Taco Bell, Nike, Adidas, and GameStop, have also released their own NFTs. However, Starbucks is coming in relatively late, and the success of its NFT release shows that there is still demand for non-fungible tokens even from companies that have not traditionally been associated with cryptocurrency.
One possible reason why Starbucks is using NFTs is to reinvent itself and engage with customers in new ways. The company’s CEO, Kevin Johnson, has been implementing a “reinvention plan” that includes a framework for accelerated earnings growth over the next three years. The plan is underpinned by enhanced comparable store sales growth, increased store count growth, and continued margin expansion.
Part of this reinvention plan is the launch of Starbucks Odyssey and the use of NFTs to incentivize purchases and engage with customers. The NFTs offer a new way for Starbucks to extend the concept of its “third place” philosophy, which refers to the idea that Starbucks locations can serve as a “third place” between work and home where people can gather, relax, and connect.
Starbucks Growth Expected Over Next 2 Years is Promising
Starbucks’ expected growth over the next few years is promising, with comparable store sales growth projected to be in the range of 7% to 9% annually, up from the previous range of 4% to 5%.
The company’s expansion plans include outsized comparable store sales performance in China for fiscal 2023 and 2024, with the opening of its 6,000th Chinese store on September 26.
This growth potential could be a win-win for the company and the Web3 and NFT markets, as Starbucks’ expansion into the digital space could drive more adoption of these technologies and offer new ways for customers to engage with the brand.
Starbucks NFT Launch Late but Still a Success
Starbucks has finally entered the NFT market with the release of its first paid collection of non-fungible tokens. “Journey Stamps,” were priced at $100 each and sold out in under 20 minutes. This shows the appetite is strong for these kinds of collectibles and also the potential to onboard the millions yet to dip into NFTs.
And with Starbucks’ growth gaining pace, especially in China it really could have a major impact on the NFT space.
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