Starbucks' new five-year plan: the number of stores in China will double

Coffee giant NASDAQ:SBUX (Starbucks) recently released a five-year plan to set performance targets for 2019 and put forward seven development strategies.

Starbucks CEO Howard Schultz told investors that the company's revenue will reach $30 billion in 2019, double that of fiscal 2014. In addition, Starbucks will have highlights such as product diversification, night experience, digitization and so on.

In response to an interview with the Daily Business News yesterday (December 8), Starbucks China said it plans to double the number of stores in the Chinese market over the next five years and has launched selective coffee in some stores.

According to Howard, Starbucks' growth over the next five years depends mainly on seven strategies, including store expansion, tea brand Teavana and increased digital participation.

In terms of diversification, Starbucks will boost its food sales in the United States to more than $4 billion by launching dinners and alcoholic beverages by fiscal year 2019. In addition, 20 to 25 per cent of US stores will launch Starbucks Night experience by the end of fiscal year 2019, a move that could increase revenue by $1 billion over the next five years.

"from the perspective of Starbucks' strategy, the company's positioning has changed, more like a restaurant, offering a greater variety of products." An industry insider close to Starbucks told the Daily Economic News.

In fact, Starbucks removed the word "coffee" from its LOGO three years ago. At present, some Starbucks stores in some markets in the United States have started serving small portions of cheese, vegetables and pizza from 4 p.m.

In the Chinese market, Wang Jingying, president of Starbucks China, said, "We opened an average of one new store every day last year (fiscal year 2014)." This year's goal is even more aggressive, to open a store within 18 hours and to open 1500 stores by the end of December.

However, with regard to the new categories launched in the US market, such as western food and beer, Starbucks told reporters that there are no new plans to introduce them to the Chinese market, but the company is also enriching its product categories in China. for example, selective coffee has been launched in eight stores across the country.

"the selection of coffee roasting and tasting experience is very special. now there is only one store in the world, which is a combination of factory and store experience." Starbucks China said, "We now have Starbucks selection coffee in eight stores in China, mainly in first-tier cities such as Beijing, Shanghai, Guangzhou and Shenzhen. In the future, these selection coffee will come from experience halls around the world."