A growth strategy for the coming years was presented by coffee chain Starbucks Corp. (SBUX) in early December. The extension of the network, enhancement of the user experience and commitment to environmental sustainability were the key directions of that development.
Starbucks plans to grow the restaurant chain to 55,000 sites internationally by 2030. Comparable revenue growth of 4-5 percent per year beginning in fiscal year 2023 is projected to follow this expansion. The bulk of the new stores will be based in China, the second-largest rising market for Starbucks. Starbucks, by contrast, finished the last year with over 18,000 coffee shops in the US and 14,000 in the rest of the country.
If the world’s coffee intake rises, societal patterns support Starbucks. The targeted coffee industry is expected to rise at a rate of 5 percent to 6 percent per year and cross $450 billion in sales worldwide by 2023, according to the independent research firm Euromonitor. It is important for the company, however, not only to extend its reach, but also to understand its clients. Modern customers, in fact, attach much more value to environmental concerns. This suggests that, in addition to balance the worldview of its future buyers, Starbucks will still promote sustainability programs.
It is important for Starbucks to continuously increase the number of its loyalty program customers. The number of Starbucks Rewards customers active for 90 days rose by 10 percent year-on-year, to 19.3 million, according to the company’s recent results. These members carry in approximately half of the overall sales of Starbucks, so it is important for the segment to continue to expand. The Starbucks loyalty scheme has been revamped recently and now it helps users to earn bonuses even more easily. The effectiveness of the loyalty program relies, among other factors, on the Starbucks initiative’s quality work with artificial intelligence components such as Deep Brew. To have improved personalization, this approach analyses the user experience. In the future, Starbucks aims to change the consumer experience based on data collected with the aid of its artificial intelligence according to their beverage tastes and place of residence.
Thus, through its maturity, Starbucks remains a fast-growing business that welcomes new experiences and is prepared to adapt with its clients.
Starbucks Corporation (SBUX) stock saw a bit rise of +0.33% on Tuesday to close at $103.44.