Starbucks, once the subject of jokes about its abundance of stores, shows no signs of slowing down. The global coffee chain has announced its plans to open an additional 16,000 stores worldwide by 2030, bringing their total count to an impressive 55,000. Alongside this expansion, Starbucks intends to introduce new store formats in the United States, specifically focusing on pick-up and drive-through locations. Currently operating over 38,000 stores globally, the company's ambitious goal demonstrates its dedication to meeting customer demand.
This announcement comes as part of a more comprehensive initiative that outlines several future targets for Starbucks. Noteworthy objectives include $3 billion in savings, an increase of 75 million rewards members, and a commitment to improving worker conditions through increased hours, wages, and incentives. Additionally, Starbucks acknowledges the growing trend of customers utilizing their mobile app for ordering cold beverages, food, and to-go orders.
Despite recent concerns regarding demand and rising prices for basic items, Starbucks remains optimistic about its growth strategy. Sara Trilling, Executive Vice President and President of Starbucks North America, reiterates that there is still untapped potential in the U.S market. Presently, Starbucks operates more than 16,000 stores in the U.S., with plans to expand this number further to 20,000 in the long term. Expanding into new cities and developing new store formats are some of the approaches the company intends to employ.
Starbucks has experienced strong sales growth in China and will continue to leverage this market for further expansion abroad. As the company continues to adapt to changing consumer preferences and navigate the evolving market landscape, their commitment to providing convenient, high-quality coffee experiences remains unwavering.
Starbucks Outlines Growth Plans
Starbucks, the renowned coffee chain, has revealed its plans for future growth following their impressive quarterly earnings report. The company is projecting a same-store sales growth of 5% to 7% and an earnings growth of 15% to 20% for fiscal year 2024. However, some analysts have expressed doubts about Starbucks' previous long-term targets.
After finishing the regular session with a notable 9.5% increase, Starbucks' shares rose by an additional 0.2% after hours on Thursday.
To drive further growth, Starbucks aims to achieve a whopping $3 billion in savings over the next three years. This includes a cost reduction of $2 billion on items outside the store. These savings will be utilized to reinvest in the business and provide progressive margin expansion and earnings growth for shareholders.
In addition, Starbucks is dedicated to doubling workers' hourly income at U.S. stores by the end of fiscal year 2025 compared to 2020. This substantial increase will be accomplished through the provision of more hours and higher wages. Further details about enhancing the partner experience in the U.S. will be shared next week.
The company is also committed to expanding its menu offerings, with customizable orders, all-day breakfast, and all-day snacks in the pipeline.
Moreover, Starbucks plans to establish partnerships with a financial institution and a hospitality partner within the next six months. This follows a successful collaboration with Delta Air Lines Inc. and Starbucks rewards members last year, which enabled them to earn miles when making purchases at Starbucks.
While Starbucks shares have experienced a slight decline of 0.6% so far this year, the company's growth strategies show promise for an upward trajectory in the future.