With worst over, Starbucks plans 20,000 more cafés

The notion of a Starbucks Corp. on every corner is back, with the chain planning to build more than 20,000 additional locations in the next decade after it has left the pandemic in its wake.

That goal of reaching 55,000 locations by fiscal 2030, up from nearly 33,000 today, was one of several targets laid out by the world's biggest coffee chain at its investor day this week. Also on the agenda: a boosted sales outlook, expanding margins and a long-awaited oat milk rollout across the U.S.

Starbucks sees “a long runway of healthy growth ahead,” chief executive officer Kevin Johnson said. “We are well positioned to invest in the right areas to strengthen our competitive advantage and drive consistent, sustainable growth for decades to come.”

The chain — whose business was clobbered by the COVID-19 pandemic — now sees things improving faster than expected. Starting in fiscal 2023, Starbucks predicts annual comparable-store sales growth of four per cent to five per cent in the U.S. and globally, and growth of two per cent to four per cent in China, beating its previous forecasts. It also raised its operating margin outlook.

The boosted outlook comes after Starbucks accelerated a shift to more delivery and drive-thru locations earlier this year. While it has lagged rivals like McDonald's Corp. in its recovery, with breakfast a more disrupted meal during lockdowns than lunch or dinner, it signalled the worst had past in October when it reported global samestore sales that were inching back toward normal.

The expansion in new Starbucks stores will be partly driven in mainland China, where it expects to open around 600 new stores over the next 12 months.