Star­bucks plans 1,500 more cafes

Com­pany ex­pects to have 20,000 cafes glob­ally by ’14.

Austin American-Statesman - - BUSINESS - NICK ut / as­so­ci­ated Press By Candice Choi

parts, re­tail mer­chan­dise for Jan­uary sales and re­pair parts for Red­box video kiosks were among the items that could be late in get­ting to their des­ti­na­tions around the

Tak­ing into ac­count Canada and South Amer­ica, the com­pany plans to add a to­tal of 3,000 new cafes in its broader Amer­i­cas re­gion.

World­wide, the com­pany says it will have more than 20,000 cafes by 2014, up from its cur­rent count of about 18,000. Much of that growth will come from China, which the com­pany says will sur­pass Canada as its sec­ond-big­gest mar­ket.

Although Star­bucks has been in­ten­si­fy­ing its growth overseas and build­ing its pack­aged­goods busi­ness back at coun­try, Wong said.

Tele­vi­sion re­ports showed huge cargo ves­sels mov­ing into port, and a line of trucks wait­ing to en­ter a ter­mi­nal.

Cler­i­cal work­ers who home, the ma­jor­ity of its rev­enue still comes from its more than 11,100 cafes in the United States.

In an in­ter­view ahead of its in­vestor day, CEO Howard Schultz said the U.S. ex­pan­sion plans are based “on the cur­rent strength of our busi­ness”

Just a few months ago, the com­pany had pre­dicted it would open just 1,000 new cafes in the coun­try over the next five years.

The up­beat ex­pan­sion plans mark a turn­around from Star­bucks’ strug­gles dur­ing the re­ces­sion.

Af­ter hit­ting a rough patch, the com­pany said that ship­pers were out­sourc­ing their jobs struck on Nov. 27 and thou­sands of dock­work­ers in the same union re­fused to cross picket lines, par­a­lyz­ing

An­other Star­bucks may soon pop up around the cor­ner, with the world’s big­gest cof­fee com­pany plan­ning to add at least 1,500 cafes in the U.S. over the next five years.

The plan, which would boost the num­ber of Star­bucks cafes in the coun­try by about 13 per­cent, was an­nounced at the com­pany’s in­vestor day in New York Wed­nes­day. brought back Schultz as CEO in 2008 and em­barked on mas­sive re­struc­tur­ing ef­fort that in­cluded clos­ing 10 per­cent of its U.S. stores.

Cliff Bur­rows, who heads Star­bucks’ domestic busi­ness, said the prob­lem wasn’t that Star­bucks was over­sat­u­rated, but that the com­pany hadn’t been care­ful about its store open­ings. In the years lead­ing up to the down­turn, the com­pany was open­ing well over 1,000 stores a year. That led to cafes in lo­ca­tions where signs or traf­fic might not be op­ti­mal, he said.

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