Starbucks recently unveiled a plan to add 17,000 locations by the year 2030, with about half of them opening outside of the U.S. This is in addition to their already existing 23,000 stores spanning more than 70 countries.
The plan entails adding new and varied formats, such as convenience stores and drive-thrus, to their existing portfolio. It also includes expansion of their corporate footprint, meaning new store count in regions such as Latin America and China.
The plan is part of Starbucks’ overall strategy of increasing their burning, or repeat, customers. The novelty of their new formats and spaces will help to draw in new customers as well as encourage current customers to be part of the Starbucks loyalty program and keep coming back for more.
Starbucks’ Chief Financial Officer Pat Grismer commented on the expansion plan saying, “This is a unique long-term strategic plan that establishes a worldwide infrastructure that’s necessary to support a culture of innovation and accelerate retail growth both in the US and globally.”
The announcement of the expansion comes just two months after Starbucks rolled out its Digital Flywheel Initiative, which seeks to use advanced technology and data to create a personalized customer experience. The Flywheel Initiative includes the launch of “Starbucks Delivers”, the app-based delivery service available in the U.S., and the introduction of Starbucks Rewards, the loyalty program with rewards for both purchases and behavior.
The rollout of these services and expansion plan are all meant to reinforce Starbucks’ leadership in convenience, accessibility, and innovation. Their objective is to create an elevated customer experience so that customers feel an emotional bond to the brand, not just a transactional one.
The rollout of these initiatives further demonstrates Starbucks’ commitment to growth and customer experience. The introduction of new store formats and customer loyalty program are strategies for engaging customers and ensuring that the company’s promise of the Starbucks experience remains at the forefront. Starbucks’ aims to create an even deeper connection with customers while sustaining their position as a mainstay in the coffee culture.