Starbucks Accelerates Growth of Multiple Diversified Store Formats & Debuts Iconic Premium Coffee Retail & Roastery Experience
September 05 2014 - 6:00AM
Business Wire
Starbucks Reserve™ Roastery and Tasting Room to
launch in Seattle this winter; unique theatre and premium coffee
experience set to open in strategic markets around the world
First dedicated super-premium Starbucks
Reserve® coffee stores to open in FY15 with 100 global locations
coming over the next five years
New express store platform opening in New York
City 2015
Starbucks Coffee Company (NASDAQ:SBUX) today announced the
expansion of the company’s store formats and evolution of their
customer experience segmentation in FY15 with the launch of a
one-of-a-kind, interactive Starbucks Reserve™ Roastery and Tasting
Room dedicated to roasting, coffee education and increased
availability of their fast-growing, highly successful small-lot
Starbucks Reserve® coffees. This consolidation of small-batch
roasting will allow the company to expand their Starbucks Reserve®
coffee line to 1,500 locations globally, as well as open at least
100 stores designed to highlight these rare coffees exclusively.
Recognizing the diversity of needs across their customer base,
Starbucks also plans to test small-footprint, express stores
focused on offering convenience to customers. This evolution in
store experience builds on the profitability of tailored, localized
store design and formats.
“Everything we have created and learned about coffee has led us
to this moment. The Starbucks Reserve Roastery and Tasting room is
a multi-sensory experience that will transform the future of
specialty coffee,” said Howard Schultz, chairman, president and
chief executive officer of Starbucks. “We plan to take this super
premium experience to cities around the world, elevating the
Starbucks experience not only through these stores but across our
entire business.”
In December, Starbucks plans to open its first-ever Starbucks
Reserve™ Roastery and Tasting Room designed to be an integrated
coffee roasting, education and retail space allowing the company to
expand its small-lot sourcing program and to serve as homage to the
rich history of specialty coffee. A first-of-its-kind union for
Starbucks of coffee theatre and manufacturing, this iconic Seattle
destination will allow Starbucks to double its small-batch roasting
capacity and grow its Starbucks Reserve® coffee presence from 800
to 1,500 stores worldwide, by the end of FY15. More than two years
in development, this unprecedented experience will allow customers
to engage with Starbucks passion for coffee in a 15,000-square-foot
interactive retail environment devoted to beverage innovation and
excellence.
Ten years ago, Starbucks first brought these premium coffees to
customers with their line of Black Apron Exclusives™. Formally
launched in 2010 under the Starbucks Reserve brand, this
exceptional collection of unique, small-batch arabica coffees
became available in select stores and online – some of which have
sold out in less than 24 hours. In 2011 Starbucks opened its first
international Starbucks Reserve® store in Tokyo, Japan, and by the
end of FY14 will be available in 21 countries. As China becomes the
second-largest market for Starbucks in 2015, Starbucks Reserve®
coffee will be integrated into this specialized, day part growth
model. Recently, Starbucks opened its first ever Starbucks Reserve®
location in Latin America as part of a three-level store serving
100 percent Colombian coffee and is on track to exceed over $1.5
million in year-one sales. On Monday, September 8, Starbucks will
offer customers a first-of-its-kind Starbucks Reserve® coffee
developed by Starbucks head of agronomy Carlos Mario Rodriguez in
partnership with a Costa Rican cooperative on the La Ines coffee
farm.
In addition to expanding this in-store offering, the company
will create a specialized store experience devoted to highlighting
these rare, limited-availability coffees in at least 100 locations
in the next five years. These locations will benefit from ongoing
new store development and renovation programs delivering an
enhanced customer experience. In 2014, the new U.S. store portfolio
averaged over $1.2 million in year-one sales with a return on
investment of approximately 50% exceeding the best-in-class
investment ratio of 2 to 1.
Complementing this expanding café experience, Starbucks will be
investing in smaller, alternative store footprints that address the
increase in urbanization and decentralization of retail. With Drive
Thru stores accounting for more than 40% of U.S. company-operated
stores and higher-than-average sales growth than non-Drive Thru
locations, there is significant opportunity to meet commuting
customers in smaller experiences.
“The evolution of our store experience is a direct reflection of
how our customers are interested in both accessibility to the brand
as well as speed and convenience. Our scale affords us the unique
opportunity to bring a flexible portfolio of options rooted in our
core commitment to coffee quality,” said Cliff Burrows, group
president, U.S., Americas, and Teavana.
In addition to providing a concentrated set of beverage and food
offerings, the express formats will look to integrate Starbucks
digital payment platform, including mobile ordering to expedite
speed of service in these locations. The growth of Starbucks
digital payment applications and online presence will also allow
the company to identify opportunities where store segmentation can
support an enhanced physical and digital retail experience to
expedited merchandise and at-home coffee purchases or subscriptions
for take-home or home delivery.
Starbucks is on track to bring approximately 1,550 net new
stores in FY14 and 1,600 net new stores in FY15 with nearly 300 net
new company-operated locations in the U.S.
About Starbucks
Since 1971, Starbucks Coffee Company has been committed to
ethically sourcing and roasting high-quality arabica coffee. Today,
with stores around the globe, the company is the premier roaster
and retailer of specialty coffee in the world. Through our
unwavering commitment to excellence and our guiding principles, we
bring the unique Starbucks Experience to life for every customer
through every cup. To share in the experience, please visit us in
our stores or online at www.starbucks.com.
Starbucks Coffee CompanyHaley Drage,
+1-206-318-7100press@starbucks.com
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