Many shoppers encounter coffee shops within Target stores and may assume a direct ownership relationship between the two companies. These in-store cafes are generally operated under a licensing agreement. Target licenses the Starbucks brand and operational model, allowing them to offer Starbucks products and services within their retail spaces. This is similar to how other businesses might franchise a brand.
This arrangement benefits both retailers. Target enhances its customer experience by providing a popular amenity, potentially increasing foot traffic and dwell time. Starbucks expands its market reach without the capital investment of opening standalone stores, leveraging Target’s existing customer base. This model has become common in retail, demonstrating the synergistic potential of strategic partnerships.
