1:23 PM, Dec 7, 2016 — Starbucks (SBUX) is planning to open 12,000 new locations around the world by 2021 as part of a bid to bolster revenue and earnings, the coffee giant said on Wednesday.
The five-year “strategic plan” includes a move to grow revenue by 10%, increased earnings per share 15% to 20% and drive same-store sales growth of mid-single digit each year, the company said in a statement.
“We are today executing against an ambitious, carefully-curated, multi-year strategy to further elevate the entire Starbucks brand and customer experience around the world,” said Kevin Johnson, the company’s president and chief operating officer, who is set to become chief executive when Howard Schultz leaves the role in April.
Starbucks plans to open Reserve Roastery locations in Shanghai in 2017 and in Tokyo and New York in 2018, with another European site to be announced early in the new year. The first roastery, described by the company’s website as a “coffee shrine,” was opened in Seattle two years ago, Starbucks said.
And in China, plans are “on track” to open more than 5,000 stores by 2021, adding to the about 2,500 currently in operation. Starbucks sees the Chinese market eclipsing the US “over time,” it said.
The cafe is planning to add more menu items early in 2017 and set a goal of doubling food growth over the next five years, it said. Starbucks will also launch a “conversational ordering system” called My Starbucks Barista, that will allow customers to place orders with voice command or messaging, rolling out first in limited trials on Apple’s (AAPL) iOS mobile operating system early in 2017 and more widely on iOS and Android later on.
Companies: Starbucks Corporation
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