Starbucks’ Strategy Calls for Multi Daypart Sales

SEATTLE -- Starbucks outlined growth plans this week that call for expanding its consumer packaged goods business and building multi-daypart sales in its coffeehouses, Nation’s Restaurant News reported.

At an investor conference in New York on Wednesday, Starbucks Chairman, President and Chief Executive Howard Schultz said the company would look at possible purchases "large and small" as it builds its consumer packaged goods business -- though he did not directly comment on speculation by analysts earlier this week that Peet’s Coffee & Tea could make a good partner for Starbucks after its planned breakup with Kraft Foods Inc., the report stated.

In addition to its bagged coffee under both the Starbucks and Seattle’s Best Coffee brands, the company said it will continue to expand Seattle’s Best Coffee as a stand-alone retail brand, and has opened the first Seattle’s Best Coffee Bar as a pilot in Walmart Canada Supercenters.

While the pace of new store openings for Starbucks’ namesake stores in the United States is expected to remain slower than in the past, Cliff Burrows, president of Starbucks Coffee U.S., said growth would be achieved from the existing 11,131 domestic locations by increasing capacity, expanding dayparts and experimenting with new concepts.

The company has been trying out beer and wine sales and an expanded food menu in some test locations to increase evening sales, for example, NRN reported. Burrows also said the chain’s loyalty program, My Starbucks Rewards, and its newly launched in-house digital network also have helped create capacity at peak hours and capture more dayparts.

"We are building a solid and secure foundation for profitable growth in both new and existing businesses," Schultz said during the investor conference. "Our next phase of growth will come from extending the Starbucks Experience to our customers beyond the third place to every part of their day, through multiple brands and channels."

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