Starbucks outlines unit, product growth
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Burrows said the company would continue to focus on building business throughout the day, as well as increasing capacity during the morning peak.
Lunch, in particular, offers an opportunity, and more is planned for the Bistro Box line, as well as the afternoon “cake pop” hour.
Earlier this month, Starbucks said it is expanding this year its test of a new format — including beer, wine and compatible small plate offerings — to locations in Chicago, Atlanta and Southern California, in addition to the six locations that currently offer it in the Pacific Northwest.
Starbucks this year plans to open 400 locations in the Americas in 2012, mostly in the United States, about half of which will be licensed.
The company has reached 500 units in Latin America, as well as 300 locations in Mexico. New units in Brazil are showing strong results, the company said, and Starbucks in May will open its first locations in Costa Rica.
• New products: Last year, Starbucks acquired the Evolution Fresh juice brand, which will join the company’s growing consumer products group, or CPG, lineup in grocery stores, and be sold in Starbucks locations.
Hoping to grab a piece of the $50 billion health-and-wellness category, Schultz said the company will unveil the middle of this year a new juice bar concept “unlike anything in the market today.”
Starbucks in January launched a new Blonde Roast coffee, a milder version now available in its coffeehouses, as well as in grocery stores as packaged coffee, VIA Ready Brew and K Cups.
The Blonde Roast offers an opportunity for incremental business, Schultz said, with an estimated 40 percent of American coffee drinkers preferring a lighter style.
Schultz predicts both VIA and K Cups will each develop into billion-dollar businesses, as Starbucks roll out the products globally.
• Europe, Middle East and Africa: This region is underperforming, according to Starbucks, showing the weakest same-store sales of any region, with an increase of only 2 percent.
Troy Alstead, Starbucks’ chief financial officer, said the company is planning a turnaround for the region, and that the second and third quarters will include “foundational investments” that may weigh down margins but improve results over time, he said.
• China and Asia Pacific: Showing the most success, with same-store sales up 20 percent and rapid growth continuing, the CAP region gained traction with Starbucks’ loyalty program, with nearly 250,000 members in China alone.