Discussing the Starbucks app structure and variables for app changes

Starbucks app users will maximize their rewards no matter how much caffeine they consume. You are probably aware of the Starbucks App Problem if you have ever traveled outside of your home country where you are unable to use the reward points that you have accumulated previously because the original Starbucks App is no longer functional in the country where you are traveling. Starbucks App Problem refers to the need to download a new app when traveling abroad. It is because Starbucks maintains an entirely different app in each of its 80 countries around the world.

Currently, Starbucks operates more than 30,000 locations in more than 80 countries around the world. Both company-operated stores and licensed stores owned and operated by third parties are included. Globally, Starbucks is present in many major markets, including the United States, Canada, the United Kingdom, China, Japan, and many other Asian, European, and Middle Eastern countries. Additionally, the company has recently expanded into new markets, such as India and Italy.

Number of Starbucks Stores Globally, 1992–2021 (source: knoema)

When you move between any of these 80 countries where Starbucks operates, you’ll probably find an altogether different app that changes by many factors like —

1. Language — The written predominant language in each country
2. Menu — A list of food and beverage options provided in each country
3. Reward Metrics — Currency and levers of a rewards program
4. Visual Design — overall look & feel of the app

The following is a snapshot of nine of the 80 or so apps Starbucks has available in the Play & App Stores 👇

Starbucks app in different regions

Complexities of a unified app

As far as the rewards program is concerned, the points that a user earns in one country are not applicable in another country. That is because the code base and server integrations of each app are standalone and not dependent on other apps by the same company. I feel this was done for a few of the following reasons —

1. Frequency Rule: As a rule, people do not frequently relocate from one country to another. It is important to realize that even if they do, it is usually for only occasional travel and not for a permanent change of location. As a result, it is unlikely that a consumer will install multiple Starbucks applications for a few days at a time.
2. Reduce Complexities: To reduce the complexity of maintaining one app that supports 80 different countries, they wish to have different codebases in each country. As a result, they want to have different codebases in each country. It is likely that the code for one unified app will be monolithic and will need to be constantly tweaked to reflect changes happening locally in each country. This is certainly a problem faced by mega-global companies like Starbucks.
   When building and managing an app, different regions may have different technical requirements or constraints. Apps designed for one type of device may not work on devices popular in another region.
3. Language and cultural differences: Managing one app across different regions can be challenging if there are significant linguistic and cultural differences. An app that is popular in one region may not be as successful in another region if it is not translated into the local language or does not take local cultural norms into account.
4. Legal differences: There may be legal differences between regions that affect how apps can be built and distributed. Certain types of content may be restricted in certain regions, or different privacy laws may apply. A single app can have different legal terms & conditions that can be triggered based on a location flag, but that will only increase the app’s code logic.
5. Marketing and distribution differences: It can be challenging to market and distribute an app in different regions due to differences in consumer tastes and marketing channels. To maximize success, marketing and distribution strategies should be tailored to each region.

Rewards Program

There are several reasons why Starbucks reward points may not be valid across different countries.

• Legal and regulatory differences between countries impact the ability of Starbucks to offer reward points.
• Starbucks uses a different metric system to manage consumer expectations from its reward points program in different countries, which makes it difficult to transfer points between countries.
• Managing a single reward points program across multiple countries can be complex and time-consuming. It is uncomplicated and more cost-effective for Starbucks to manage separate reward programs in different countries rather than trying to integrate them all into a single program.

Difference in Menu

There are several reasons why Starbucks may have different food and drink menus in different countries, which can be due to a variety of factors. There are several reasons for this, some of which include the following —

Local tastes and preferences: There is a wide range of food and drink preferences across different countries, and Starbucks tailors its menus to meet the tastes and preferences of its customers in each country. Depending on where Starbucks is located, it may offer a particular type of tea or coffee in countries where these beverages are popular, or it may offer local dishes that are popular in a particular region. Most of the time, the coffee menu stays the same with a few minor variations. Nevertheless, the food menus of different countries differ completely in terms of what they offer.

Availability of ingredients: The availability of certain ingredients varies by region since Starbucks sources many of its ingredients from local suppliers. To meet the needs of different markets, the company must adapt its menus accordingly.

Legal and regulatory differences: There may be some legal and regulatory differences between countries that will affect the types of food and drinks that Starbucks can offer in its stores. There are several reasons why certain ingredients or food items may be restricted or banned in certain countries, or there may be different labeling or nutritional requirements that need to be met in those countries.

Price changes as the Country changes

How much a Starbucks Latte costs around the world (source: VividMaps)

There is a wide range of factors that affect the price of a Starbucks drink from country to country, and the price varies significantly from one to another. Starbucks drinks can be priced based on several factors, including:

• Cost of ingredients: There is a significant difference between the cost of ingredients in different countries, and this can have a significant impact on the price of a Starbucks drink in different countries. Some countries may have higher prices for coffee beans, for example, as a result of factors such as the costs of transporting the beans or the supply and demand situation in the local market.
• Labor and overhead costs: A country’s cost of labor and overhead expenses, such as rent and utilities, can also vary from one to another, depending on the country in which they are located. A Starbucks drink can have an overall cost that is influenced by these factors.
• Exchange rates: There is also the possibility that exchange rates could have an impact on the price of a Starbucks drink.
• Competition: A Starbucks drink’s price can also be affected by the level of competition that exists in the local market. For Starbucks to remain competitive, it may be necessary to lower the prices of its products if many competing coffee shops are offering similar products at lower prices than Starbucks.
• Purchasing Power: A person’s purchasing power can be defined as the number of things and services that they can purchase with a given amount of money. Income, prices, and exchange rates affect it.
  Starbucks drinks are generally more expensive in countries or regions with lower purchasing power. Due to lower disposable income, people in these areas may not be able to afford higher prices. Therefore, Starbucks needs to lower prices in these areas to remain competitive.
  Conversely, people in countries or regions with greater purchasing power may have more disposable income and may be willing to pay higher prices. Then Starbucks can charge higher prices without losing customers.

Code Base Issue

It’s not all good when you need to maintain multiple apps, and multiple codebases, all at the same time. Managing multiple codebases comes with a variety of challenges.

• Maintenance and updates: As each code base requires dedicated teams of developers to maintain and update, managing multiple code bases can be time-consuming and resource-intensive. It can be particularly challenging if the code bases are large and complex, or if they use different programming languages or technologies.
• Development and deployment: Multiple code bases can make developing and deploying new features and updates more complex and time-consuming. The development process may be slowed and customer needs and demands sometimes can be harder to meet.
• Security: Maintaining and securing multiple systems and environments can also pose security risks when managing multiple code bases. Especially if the code bases contain sensitive or proprietary information, this can be challenging.

End Notes

It is common for companies to have multiple apps to target different audiences or serve different purposes. Starbucks has several apps available in the 80 countries where it operates, each with its code base and server integration, and offers different reward programs and menus to meet the tastes and preferences of local customers.

While having multiple apps can be a challenge due to the complexity of maintaining multiple code bases and ensuring user-friendliness and efficiency, it is not necessarily a problem as long as each app serves a specific purpose and provides value to the user. Companies need to manage their apps effectively to maximize customer satisfaction and loyalty.

That’s the end of this short yet hopefully insightful read. Thanks for making it to the end. I hope you gained something from it.

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