Starbucks’ five-year plan heavy on new store formats, food growth and mobile
Seattle -Starbucks Coffee Company isn’t resting on its laurels. The chain’s five-year strategic growth plan—unveiled Thursday at its biennial Investor Day—includes new store formats, expanded food offerings, and digital initiatives.
“The seismic shift in consumer behavior underway presents tremendous opportunity for businesses the world over that are prepared and positioned to seize it,” said chairman, president and CEO Howard Schultz.
Starbucks said it will roll out its mobile ordering option, which launched in Portland, Ore., on December 3, nationwide in 2015. The features allows customers to place orders in advance of their visit, and to pick up their ready order at their preferred Starbucks store.
“Of all the new traffic-driving initiatives for the company, Mobile Order & Pay is at the top of that list and we are confident that it will be game-changing for our customers and our business,” said Adam Brotman, Starbucks chief digital officer. “We have designed the full mobile ordering experience – from the app itself, to the pick-up of the food and beverages, to the engagement with the baristas in our stores – to be a seamless and natural extension of the existing Starbucks Experience.”
On the brick-and-mortar front, Starbucks on Friday will unveil its newest retail format, the 15,000-sq.-ft. Starbucks Reserve Roastery and Tasting Room, an interactive coffee and dining venue. The additional small batch roasting capacity provided by the Roastery will enable the company to expand availability of its super-premium, small-lot Starbucks Reserve
Coffee to 1,500 locations globally, and to support the the opening of the first 100 dedicated Starbucks Reserve stores.
Starbucks expects continued top and bottom-line growth in its food platform as it elevates and expands its offerings, with plans to double its U.S. food revenue to over $4 billion over the next five years. By the end of fiscal year 2019, 20-25% of Starbucks U.S. stores will offer the “Starbucks Evenings “ experience, adding approximately $1 billion in revenue.
Starbucks also said it will expand its micro and express store formats, drive-thrus and mobile trucks in 2015, but did not specify the details. .
In addition, the company remains dedicated to expanding Teavana, which it acquired two years ago. Teavana’s new stores in Seattle’s Pacific Place and and in New York City are performing ahead of plan, Starbucks said, and it plans to expand the brand to targeted markets in the United States and abroad.
In other major initiatives, Starbucks announced plans to double its store count in China – to over 3,000 stores – by 2019. The retailer noted that its previoulsy-announced acquisition of Starbucks Japan – the company’s first international market outside of North America and with more than 1,000 stores its second largest market overall in retail store sales – will be completed in the second quarter of 2015, and will position Starbucks to further accelerate growth in the rapidly-growing China and Asia-Pacific region.
Take a video tourof Starbucks' new roastery.