Starbucks Plans to Double Rate of Store Openings

StarbucksCoffee giant Starbucks (SBUX) plans to more than double the rate at which it opens stores as the global economy recovers, according to Bloomberg.

CEO Howard Schultz plans to open 500 stores in the fiscal year that began in October, with 400 outside the U.S., he told Bloomberg. The world's biggest coffee chain's planned store-opening rate will be the highest since the 2008 fiscal year, when it opened 1,669 stores. It closed 45 stores in fiscal 2009 and opened 223 in fiscal 2010, which ended Oct. 3.

China will be Starbucks' biggest growth market in two years, Schultz said. And according to Jinlong Wang, the restaurant operator's China chief, there will be more than 1,000 locations in China in the "near future."

But while the world's most populous country may present the biggest opportunity for the chain, Starbucks will have to work hard to boost coffee consumption in China, which is at an annual 22 grams per person, compared with an estimated 3.3 kilograms in Japan, according to data from roaster Key Coffee Inc. But there's definitely growth as sales at China's coffee shops more than tripled to 35 million yuan in 2009 from 11 million yuan in 2004, according to data from Euromonitor International.

And even in China, the Seattle-based company faces increased competition, with other chains planning expansion as well. So far, however, Bloomberg reports that Starbucks dominated the market with a 69.8% share last year, compared with No. 2 player with 5% share.

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Jenny

How about opening some stores in the actual city of Brussels--not just the airport :(!! Seriously, it's lacking Starbucks 2 the point of annoyance :((!!!

November 12 2010 at 7:58 PM Report abuse rate up rate down Reply
Barb

he who drinks beer lives lots longer

November 12 2010 at 6:46 PM Report abuse rate up rate down Reply
Mike

Forget Starbucks. As a "senior" old I prefer the delicious coffee served at Mickie D's, known of course as Mc Donald's. The "senior" coffee costs 53 cents a cup with a free refill (try that at Starbucks). I think the coffee is better because it is not as strong. Starbucks coffee can be used to fill fountain pen, althought very few people use this type of pen today. The downside is the clientile at Mickey D's. Not the beautiful, female college students on their computers you find in starbucks.

November 12 2010 at 6:21 PM Report abuse rate up rate down Reply
gmhtv1

At this rate, the entire world will smell like burnt coffee ...... Please whew...

November 12 2010 at 6:02 PM Report abuse rate up rate down Reply
Cactus Pete

In china, many can't afford a nice home so they buy a nice watch. Now, in America, many can't afford a nice home but they buy a Starbucks. It's a status symbol.

November 12 2010 at 5:36 PM Report abuse rate up rate down Reply
dickn2000b

Opening ANY more stores in this economy sounds foolish to me. Two Starbucks in my area (north Athanta) have closed recently. But what do I know?

November 12 2010 at 4:27 PM Report abuse rate up rate down Reply
Mark Lathom

They are taking over RUN!!! They won't be satisfied until there's two starbucks on every block. Wouldn't want someone to have to cross the street to get to one, now would you? Coming soon... Starbucks Mogadishu.

November 12 2010 at 4:16 PM Report abuse rate up rate down Reply
tntonys

you latte liberals are spending the ridiculous prices for this junk that starbucks can afford to open 500 new stores.

November 12 2010 at 4:01 PM Report abuse +1 rate up rate down Reply
johnhen56

"There should be a law" When a US based company announces they are opening "500" new stores, it should be US based stores Americans don't care one bit about how many Starbucks are in China or Japan they want to know how many are opening here so their kids right out of school can find a JOB. how many locations are in foreign countries is only a concern to "STOCKHOLDERS" which most average Americans are not.

November 12 2010 at 3:13 PM Report abuse rate up rate down Reply
Jay

I forgot to add this......Starbucks would do good to teach its empolyees in America to speak English. I tried to order a cup of coffee this morning and I was met with words like "grande" or "vinti" or whatever it was. When I told the lady I wanted a large cup of plain coffee 4 times and she just did not understand me!Talk about putting on false airs.....since when did coffee become such an issue? I will finish this by saying I went next door to Dunkin Donuts where the coffee is better and cheaper!

November 12 2010 at 1:50 PM Report abuse +4 rate up rate down Reply
1 reply to Jay's comment
Ravenstorm

Dunkin Donuts #1!!

November 12 2010 at 3:30 PM Report abuse +3 rate up rate down Reply