Starbucks to open 3,500 stores across Americas; unveiling new Express format
Seattle — Starbucks Corp. remains highly bullish on expansion. In remarks at the company’s annual shareholders meeting, the coffee giant revealed that over the next five years it plans to open 3,500 locations in its Americas region and 8,000 new stores in foreign markets. And just in case you were wondering … Starbucks noted that Shanghai has more Starbucks stores than any other city in the world in which it operates.
Speaking at the meeting, Cliff Burrows, group president of the Americas and Teavana, said the past year has been “a tremendous year for growth (for Starbucks) – in fact probably the best.”
“We are currently at just over 14,000 stores across the Americas and that number will grow by 3,500 over the next 5 years,” Burrows said.
Starbucks is opening a new smaller, take-away only footprint especially focused on meeting the demands of customers in urban locations during the morning peak. The first Express location is scheduled to open in the company’s second quarter, in New York, with four additional stores on tap by year end, now open in Manhattan.
“This new format will open up new doors in places we haven’t been able to go before, “Burrows explained.
The company is also looking to grow its domestic food sales.
“By the end of 2019 we will double food sales in the Americas through breakfast, lunch, snacks and the Evenings program. We will grow our food business in the U.S. from 18% to 25% of revenues by the end of 2019 adding an additional $2 billion to our base business,” Burrows said.
On the international front, Starbucks said the China and Asia Pacific (CAP) region will account for over half Starbucks new store growth globally over the next five years, led by Japan and China.
China is Starbucks’ fastest-growing global market is China, where it plans to up its store count from the current 1,600 locations to 3,400 stores in the next five years.