Starbucks Global Coffee Giant Has New
North America and 255 are in New York City. This dominant position enables the Company to try new ideas all the time. One of these initiatives is the opening of the first Taco tea store in Cattle’s university Village and the company recently has acquired Tavern Holdings, which will support a future expansion of the tea store concept. Management believes It Is a $40 billion market.
While the acquisitions have played some role in the Company’s growth including the important purchase of Cattle’s Best Coffee, much of the store growth has been organic. Under the leadership of Howard Schultz, President and CEO, the company has not only grown in the United States, world-wide expansion has been spectacular. Today Cutbacks is in 62 countries around the globe, including most recently India and there are more to come. The potential for ongoing growth In China Is Important for Cutbacks.
Currently there re more than 3,000 stores in China, and it is one of the fastest growing countries for the Company. In the first fiscal quarter of 2013 the China/Asia Pacific segment alone achieved sales of $214. 3 Million, an increase of 28% over the previous year with comparable store growth in the region rising 11%, contributing to the 6% same store growth worldwide. This was the 12th consecutive quarter of comparable store growth in excess of 5%. Capitalizing on the favorable trends In same store sales, the company will open about 1300 stores world-wide In fiscal 2013.
About half of the stores – around 600- will be opened in China. Fifty percent of these stores will be licensed. They are planning for China to be the Company’s second largest market by 2014. Despite the rapid growth in Chinese store fronts, as a percent of total, physical growth has slowed. Wisely, the company Is focusing on productivity through new products and a very Important expansion through the grocery channel, where they are making great strides with K-Cups and other products that give their brand a resent in consumers’ homes.
In my opinion, many customers have made a Cutbacks store their daily headquarters, using the free Internet connections to communicate with their friends – and this will continue as exciting new menu Items are added. In addition they can increasingly find Cutbacks products In the grocery aisles, and A recent survey by American Express/SAP ranks Cutbacks 49th among the Top 100 global retailers. Fortune Magazine ranks it among the best companies to work for. Not bad for a coffee roaster from Seattle.