Starbucks Unveils Big Growth Plans For Investor Day

Starbucks plans to open 12,000 new locations within five years, boosting the total number of its coffee shops worldwide by nearly 50 percent. Fifty percent of these new stores will come to the US and China, the company’s two largest markets. Starbucks added it remains on track to open more than 5,000 stores in China by 2021.

The company plans to open its second Roastery, about twice the size of Seattle’s, in Shanghai next year, with others planned for Tokyo and NY in 2018, and a fifth at a location in Europe that the company plans to announce next year.

From next year, the group plans to open a new retail format, the Reserve Roastery stores formed in partnership with Italian foodmaker Princi. The company will also seek to bolster revenue by opening standalone Princi stores starting at the end of next year in New York, Chicago and Seattle.

There would not be any big change in strategy in Starbucks Corporation (NASDAQ:SBUX) following the resignation of Howard Schultz as chairman and CEO, according to S&P Capital IQ. After many years of posting strong same-store sales growth in its key US market, sales have begun to slow.

Ahead of its Investor Day on December 7, Starbucks Corporation (NYSE: SBUX) was given a review by Credit Suisse about quantifying the impact of “My Starbucks Rewards” on the Starbucks’ same store sales figures.

Schultz reiterated his “full confidence” in Kevin Johnson who now serves as the company’s president and chief operating officer, and who will take over as chief executive in April.

But Mr. Schultz, who helped build Starbucks into a global brand, has had a hand in the direction of the business as far back as 1982, when he joined the company as its director of marketing and retail operations.

Following previous ticker characteristics, Starbucks Corporation (NASDAQ:SBUX) also run on active notice, stock price eased down -0.10% after traded at $57.44 in most recent trading session. The Company purchases and roasts coffees that it sells, along with coffee, tea and other beverages, and a range of fresh food items, through Company-operated stores. For Starbucks to drive growth and profitability in the US, the expansion of its reserve stores is critical stimulate consumption of gourmet and rare coffees.

The Seattle-based chain is also adding more food to its menu next year, including organic soups, gluten-free breakfast sandwiches and a wheat-free cooked egg product. Starbucks fell 4.3 percent this year through Tuesday. On Wednesday, the company will unveil My Starbucks Barista, an ordering system that uses artificial intelligence to place orders by voice command. The My Starbucks Barista feature will roll out first on iOS in limited beta in early 2017 and be made available to more iOS and Android users in subsequent releases.

Schultz has done many things as CEO of Starbucks to make it the premier coffee company in the world, and now that he has, he recognizes that he’s no longer the man to lead the brand forward. Starbucks has delivered personalized offers to customers directly on the front screen of the mobile app. While just 40% of the company’s stores, though, are able to take advantage of mobile order and pay options, Johnson said there’s an effort underway to extend that opportunity to its licensed partners around the globe. Other technology efforts aim to boost sales through greater personalisation of orders.