Walmart and Starbucks represent two distinct worlds within daily consumption. One bets on accessibility and savings; the other, on a premium experience with crafted beverages. Now, a strategic decision by Walmart could shift the balance between the two.
The supermarket chain has incorporated a 7 Brew coffee shop within one of its stores in Springdale, Arkansas. Although it seems like a one-off action, it could be the start of something much bigger. The collaboration between both brands could signify an important change in the coffee market in the United States.
A new business within Walmart
7 Brew is not a traditional coffee shop like Starbucks. Its proposal revolves around sweet drinks, many of them without coffee, and locations focused on self-service. The new location in Walmart introduces for the first time a "walk-thru" format instead of the classic drive-thru.
The experience is quick, without physical menus or complicated apps. Customers scan a QR code to see the options and can access promotions with their phone number. Although simple, the system has proven to be effective and popular, with long lines that move quickly.
With more than 375 establishments, 7 Brew has grown with a very different approach from Starbucks. It doesn't offer a quiet environment or spaces to work or socialize, but rather a fun and accessible experience, reports The Street. This fits perfectly with Walmart's proposal, focused on offering practical solutions to the average consumer.
An unexpected competition for Starbucks
Starbucks has been synonymous with quality coffee and a refined lifestyle for years. Its high prices and crafted beverages reinforce that image, which has attracted a loyal audience. However, it also positions it as an "elitist" brand compared to more affordable options.
The alliance between Walmart and 7 Brew could offer a real alternative for those looking for something different. The variety of drinks, from sweet coffees to Italian sodas, teas, and lemonades, attracts those who don't usually consume coffee. For the audience that already shops at Walmart, having this option within reach can be very appealing.
Although it's too early to know if this will directly affect Starbucks, the potential is clear. Walmart has the ability to quickly expand the model if it works well in this first location. With its national reach, it could position 7 Brew as a real alternative in many cities across the country.
For now, Starbucks doesn't face an immediate threat, but it does face a challenge that it can't ignore. Convenience, price, and speed play a key role in the decision of many consumers. Meanwhile, in that field, the combination of Walmart and 7 Brew can offer just what the public is looking for today.