Starbucks focuses on Seattle’s Best for growth
St a r b uc k s Corp. , the world’s largest coffee-shop operator, is adding smaller locations as it expands its Seattle’s Best Coffee franchises in the Western U.S. and Midwest.
Since opening Seattle’s Best to franchising last year, the company has signed deals with 10 new operators that plan to open stores in California, Illinois and Texas, John Wuycheck, vice-president of franchise development, said Monday.
Starbucks is recovering from a strategy of opening too many cafes too quickly, executives have said. The company has shifted growth plans to its junior brand, Tom Ehlers, vice-president and general manager of Seattle’s Best, said Friday. The company is adding smaller kiosk-sized locations in places such as New York and Houston, where a full cafe won’t fit, Wuycheck said.
“We’re always looking for full cafes, but many times it’s easier to fit a smaller kiosk into those spaces,” he said. The Western U.S. markets “are very strong influencing markets for the rest of the country. We’re getting strong interest there.”
The company is also offering 20 per cent discounts on franchisee fees to veterans and minorities in a partnership with the International Franchise Association, a Washingtonbased trade group. Franchisees invest from $265,200 to $440,000 to open a Seattle’s Best location.
Starbucks rose 35 cents, or 1.6 per cent, to $22.14 on the Nasdaq stock market.
CAFE Calgary, the local