SBUX on Thursday raised its long-term expansion goal to 40, stores from 30, and said it was nowhere close to exhausting opportunities in North America, even as possibilities appear internationally.
Business Starbucks plans big expansion in Germany US coffee giant Starbucks wants to "double or triple" the number of outlets in Germany, according to the company's CEO. The company also plans on expanding its product line and tailoring offerings to local tastes. Starbucks is flush again after a few tough years The double non-fat lattes have been flying out of baristas' hands in Starbucks since the company made a comeback inand the good numbers have led CEO Howard Schultz to talk about a worldwide expansion, even in Germany where the road has been rocky for the Seattle-based coffee giant.
After a series of tough years that saw the company close down outlets and lay off personnel, Starbucks is booming.
It just recorded the most successful quarterly numbers in its history and its stock price is at a near all-time high. Flush with success, the company is planning a European expansion that will see hundreds of new coffee shops opening their doors, the introduction of a type of instant coffee that has already hit the shelves in American and Asia, and a product line expansion that will include healthy foods.
The company's plans mean Germans will likely be seeing more of the green signs featuring the Starbucks siren on city streets. Starbucks generates about 20 percent of its revenues from international markets. In July, it announced a reorganization to achieve its goal of generating half of revenues outside the US.
Tough road But Starbucks has not had an easy time of it in Germany. Schulz gave interviews at the company's first store in Germany, at Berlin's Hackescher Markt, which opened amid great media fanfare in Back then, the company said its goal was to have stores in Germany by Today, init has across the country, fewer than the number in Manhattan.
There have been several theories around Starbucks' difficulties in the German market. Besides the stiff competition, there is the matter of price - many wondered if Germans were ready to pay a premium for Starbucks products, or if they would be attracted by the novelty of Frappuccinos, Chai lattes and Moccaccinos.
According to analyst Peckert, Starbucks' main business was always with to-go coffee, despite the overstuffed sofas and chairs on the premises. Espresso consumption has risen by a factor of ten sinceaccording to Holger Preibisch, director of the German Coffee Association.
And despite relatively high prices for coffee drinks, Germans still see them as a good deal. For example in China its products will be less sweet.
Germans have been slow to warm to the coffee to-go idea But in Germany, the company might buy baked goods from German bakers and sell foods that appeal to the German palate, Schultz said.
Starbucks plans on introducing a range of new coffee-related products to its cafes, and then later in supermarkets, he said.
Schultz said Via should be generating millions for the company in a few years. The company is putting the emphasis on health and wellness and has not ruled out the possibility of going on a shopping spree if it sees a company it likes. While Europe is set for an increase in frappuccinos, Asia is where the most intense action will be.
Schultz said the biggest expansion will take place there. The first Starbucks is planned for India in and for Vietnam in Starbucks’ forty-year anniversary is being celebrated this week with some fanfare amid the unveiling of a new Starbucks logo, plans for new products and expansion of Starbucks stores in regions around the world including one thousand new stores in China.
Nov 03, · Starbucks reported its most profitable quarter and fiscal year ever Thursday, pointing to more diverse offerings and stores opening around the globe -- from Cambodia to Trinidad -- .
Starbucks has failed to understand local social mores in the past, most notably in Beijing, China, where a Starbucks’ location in the former Imperial Palace in the centuries-old Forbidden City closed in July Starbucks global vision is to create distinctive Starbucks experience in the face of rapid expansion.
It ensures that growth does not dilute the company’s culture and the common goal of the company’s leadership to act like a small company. Almost 10% percent of the company's stores now reside in the China. In the country was home to just % of Starbucks stores around the world.
The $50 million expansion project will add roughly ,square-feet to the warehouse and distribution center, located off of Johnson Lane, Starbucks said in a midnight Friday press release.
The existing building is a ,square-foot roasting plant and distribution center.