Coffee shop giant Starbucks will embark on a five-year plan for growth and "a new era of customer convenience”.
Over the next five years Starbucks will embrace the opportunity offered by changing consumer behaviour, such as working on mobile and digital technologies and innovating in its core products of tea and coffee.
Chairman, president and chief executive officer Howard Schultz said: “The seismic shift in consumer behaviour under way presents tremendous opportunity for businesses the world over that are prepared and positioned to seize it.”
Troy Alstead, chief operating officer, said: “Starbucks’ business, operations and growth trajectory around the world have never been stronger, and we are more confident than ever in our ability to continue to drive significant growth and meet our long-term financial targets.
“We have more customers visiting more stores more frequently, both in the US and around the world, than at any time in our history. And we expect both the number of customers visiting our stores and the amount they spend with us to accelerate in the years ahead. With a robust pipeline of mobile commerce innovations that will drive transactions and unprecedented speed of service, Starbucks is ushering in a new era of customer convenience.”
The areas Starbucks is looking at for its five-year plan are:
Coffee and tea leadership
The new Teavana stores in Seattle’s Pacific Place and at Broadway and 9th in New York City are performing ahead of plan and Teavana will continue to expand and bring its super-premium loose leaf teas to targeted markets in the US and abroad.
Day part and store format diversification
By the end of FY2019, 20-25% of US Starbucks stores in the US will offer the Starbucks Evenings experience, adding approximately $1bn in revenue. The expansion of Starbucks Evenings, Starbucks Reserve only stores, micro and express store formats, new drive-thrus and mobile trucks will also be seen in 2015.
Mobile commerce momentum and innovation continues with the launch of mobile order and pay
Starbucks is launching “Mobile Order & Pay”, which will allow customers to place orders in advance of their visit, and to pick up their ready order.
Global and channel expansion
Starbucks plans to double its store count in China to more than 3,000 stores by 2019. Over the next five years Starbucks Channel Development segment will grow its revenue by 60%, nearly doubling its operating income.
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