Starbucks' Five-Year Plan Includes 1,500 More U.S. Coffeehouses
NEW YORK -- Starbucks plans to open approximately 1,500 new locations in the United States over the next five years and renovate thousands of existing ones, according to a Nation's Restaurant News report. The expansion plans come as the company has "never been healthier," president and CEO Howard Schultz stated this week at an investor conference. The expansion plans will include international growth as well.
Moving forward, company growth will accelerate, with 1,300 new coffeehouse locations planned for 2013, consisting of around 600 in the Americas -- primarily in the U.S. -- and 600 in the China and Asia Pacific region, according to Schultz. In 2012, the Seattle-based chain added 1,063 new stores worldwide, setting it at pace to reach 20,000 units by 2014.
Schultz also spoke of plans to "do for tea what it did for coffee" through its recent acquisition of Teavana.
Other newly acquired brands will appear inside Starbucks locations, with La Boulange baked goods being served in more than 2,500 U.S. stores by the end of 2013. Additionally, Evolution Fresh juices will be available in more than 5,000 locations.
The company's consumer packaged goods business, called Channel Development, is now Starbucks' second-largest operating segment, increasing revenue 50 percent to $1.3 billion in fiscal 2012, reported the news outlet. Starbucks plans to double the international footprint of packaged goods by increasing points of distribution to 100,000 in 20 different countries, and hopefully eventually rivaling the coffeehouse business in size and profits.
Starbucks also announced that starting next year, U.S. customers will be able to earn My Starbucks Reward points that can be redeemed for food or drink by purchasing Starbucks-branded packaged goods at other retail outlets. Currently, rewards can only be earned from purchases inside Starbucks locations. Its loyalty card is used in approximately 25 percent of purchases within the United States.
The company also noted that mobile payments are projected to account for approximately 10 percent of U.S. transactions by the end of the next fiscal year.