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The Street
The Street
Business
Daniel Kline

Starbucks Menu Adds a New Way to Make Coffee (Really Fancy Coffee)

Starbucks SBUX coffee has long been divisive. Some people love it, others find it too bitter, and some people simply don't like the chain because of its dominance.

Getting people to agree on whether the chain has good coffee, bad coffee or something in between will never happen because people have varying pallets.

The reality is that Starbucks has invested since its inception as a coffee roaster in improving the coffee experience while also being able to deliver at scale.

Managing those two things can be a challenge. Boutique cafes, which can take 10 minutes to craft each cup, have an inherent advantage over a chain trying to serve hundreds of people an hour.

Starbucks has balanced those two concerns by having a variety of coffee options. The chain offers its basic blends which are brewed by the pot. That's a quick way to serve a lot of people and customers always get a fresh cup because the chain serves so many people.

It also has its espresso beverages, where shots are pulled by the baristas. That takes more time than pouring from a pot, but it's still a very efficient process.

The chain also has a solution for making single cups of coffee, its Clover brewing machines. Those aren't present in every store — in fact, the chain removed them from some locations, but the coffee chain has a new Clover that it showed off during its recent investor day.

Starbucks

How the Starbucks Clover Works

Starbucks offered Clover machines at its Reserve stores and at select other locations. 

Former, and soon-to-be interim, CEO Howard Schultz had a vision for the chain having over 1,000 premium locations that served limited-supply coffees and other special offerings, sort of mini versions of the chain's roastery locations.  

That's a strategy that Schultz oversaw when he moved from the CEO role to serving as the chain's executive chairman. 

Outgoing CEO Kevin Johnson did not believe premium was where the company should focus its resources. He wanted to improve efficiency and its digital model, two things which paid off during the pandemic.

The Clover system allows the chain to sell single cups of coffee brewed quickly.

That lets the company serve the coffee connoisseur who understands the difference between different kinds of beans from around the world. It's a premium experience that expands the company's reach, and the price it can charge for a cup of coffee.

Starbucks Has a New Clover

After deemphasizing the Clover in recent years, and even removing them from some stores, Starbucks shared info on a new Clover system during its annual investors day.

"Starbucks will continue raising the bar on coffee by introducing our new proprietary single cup, on-demand brewer, Clover Vertica, which reimagines the brewed coffee experience for partners (baristas) and customers by delivering a single cup of freshly brewed coffee with exquisite, beautifully pronounced flavors – in less than 30 seconds," the company's said on its website.

The Clover Vertica brewer started rolling out this calendar year.

Starbucks did not share any information on what, or how many, stores would get the new Clover Vertica.

Adding Vertica should help Starbucks attract customers that may not always want its traditional offerings. It could also draw people who just want to try new coffees from around the world during parts of the day that aren't as traditionally busy.

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