January 16, 2017
It's not uncommon to see a Starbucks on every corner in a big city and, according to the leaders of the popular coffee chain, there will be 12,000 new Starbucks locations by 2021. This would bring its total number to 37,000 around the world.
Starbucks SEO Howard Schultz spoke at his last investors' conference, praising the company's new premium offerings that are sure to boost its annual hearing 15 to 20 percent.
About 1,000 of the new stores will include the Starbucks Reserve, which will offer various artisanal foods and brewing methods from its Italian food partner Princi. According to the company, Starbucks will increase its revenue by the opening of stand-alone Princi food and baked goods locations in Chicago, New York and Seattle.
Schultz has made the new premium strategy a priority.
In a recent announcement, he said Kevin Johnson, president of Starbucks, will become CEO on April 3. Schultz will be a Starbucks executive chairman and said he's committed to focusing on the social impact projects - something that's bound to be important during a Donald Trump presidency.
The company also laid out a five-year road map Johnson noted as being Starbucks most inspirational plan in its history. As well as Reserve shops, the strategy will add specialty Reserve bars and four roasteries over the next five years.
Although Starbucks primary business is growing - revenue anticipated to increase to nearly $21 billion compared to the year 2014. Starbucks executives have said they key to keeping customers happy is to add more innovative experiences.
Schultz said there has been a huge change in the bricks-and-mortar retailer, noting the significant increase in mobile shopping and e-commerce. He said there's a new to be creative and the company has found a big opportunity in the reserve brand - a new way to increase growth and profits.
The company has put a lot of attention on boosting the digital experience. Johnson has a plethora amount of technological knowledge in his background - he spent 16 years at Microsoft and was Juniper Networks CEO for five years. The company used its app to tailor offers to its customers based on their previous orders and their favorites.
Beginning in 2017, the company will let some customers speak what they want to order through the app before they pick it up from their local Starbucks store. Starbucks will also increase its mobile payment options.
Schultz purchased the company in the late 1980s - then it was a tiny coffee company that became a household name. During his meeting, he said he had every confidence in Johnson's ability to lead the company.
Schultz reiterated he wasn't leaving the company but that Johnson would be CEO in early April. He said he will work with the company to ensure the Starbucks' legacy continues.