Starbucks Expands With Ambition

While most quick-serve restaurants focus on breakfast as their main source of income, Starbucks Corp. is making a move to shift more revenue from morning to later in the day; they are trying to pull in more guests for food and drink at later hours. They have scheduled a report for their first fiscal quarter this month, and hope the report results show a strong start in reaching their five-year growth targets. In the like period a year before, Starbucks had earned an adjusted 80 cents a share up from 71 cents, which should come as a relief to shareholders.

It’s getting harder to go anywhere without seeing a Starbucks, supporting some fears about maintaining reasonable growth. Executives still plan to expand the current store count of 21,366 to over 30,000 in five years while doubling operating income. That’s roughly a 40% increase in the number of stores in 5 years compared to the 28% growth in stores in the previous past five years. Adding new categories such as tea stores and new stores in foreign markets where licensing occurs rather than direct ownership will predominate the expansion. Even the seemingly saturated U.S. chain has potential with growing food sales, evening visits and a successful digital sales strategy that allows stores to handle more customers.

The operation-income is projected to grow to an average of 15% over five years, which is a slowdown from its recent pace. Starbucks is expanding ambitiously by adding new categories and attracting new customers for evening visits. 

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Virginia MacKoul

Virginia is a graduate from the University of Florida's College of Design Construction and Planning with a degree in Sustainability and the Built Environment, and a minor in Urban Regional Planning. Virginia joined the Front Street team in 2011, as an intern. Upon graduation, Virginia joined the Front Street team full-time as the Director of Client Services. Ms. MacKoul’s addition furthers Front Street’s continued growth and expansion within Gainesville and other North Central Florida markets. She was promoted to Director of Marketing in 2014 and now manages the firm’s team of interns and oversees all marketing and branding activity. Virginia was born in Boston and moved to Lee County, Florida in 1997. Virginia graduated her high school's International Baccalaureate program and started at the University of Florida with a focus on Architecture. Virginia shares Front Street's passion of giving back to the community and those in need. Virginia's hobbies include photography, cooking, football, movies, music, and spending time with her dog, Brinkley.

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