Growth Strategy of Every Starbucks is Working
Starbucks is a Seattle-based cafe chain, plans various strategies to increase growth. The company is engaged in developing new products, improving technology, opening restaurants, and others. The company raised its full-year revenue after served an extra frothy in the third quarter. More customers returned to cafes for costlier drinks in the US and China. According to reports, sales by US stores raised by 7%, sales growth of 4.4% and increased by 3% traffic growth. Many customers were visiting cafes the entire day. Starbucks has been engaging more customers to its stores all the time by providing happy hour promotion for seven years. Starbucks US loyalty program added around four lacs members during the third quarter.
In 2018, at scale to achieve growth, Kevin Johnson CEO of Starbucks set several business strategies. After various approaches, the company opened 442 new stores, one-third of them in China. The company opened the 30,000th store and closed out the quarter with 30,600 stores. The strategies help out to boost Starbucks in two major markets, the US and China. Coffee giant Starbucks has made its rewards program to attract more customer. Also, introducing new products in partnership with Nestle. The company launched three Starbucks coffee creamers such as Cinnamon Dolce, Caramel, and White Chocolate. The company will launch a wide range of espresso capsules to expand its presence in Europe.
Starbucks is speedily increasing in China, and store sales increased by 6%. To attract customer, the company developed new beverages in Shanghai. The company launched mobile ordering and payment in major Chinese cities in the third quarter. In China, delivery sales showed 6% of total volume during the third quarter. In Chinese cities, Starbucks offers delivery from 2,900 stores. Starbucks expects to surpass three thousand stores at the end of the financial year. Starbucks, in collaboration with Alibaba, to deliver drinks across 2,900 stores in China. The company will take delivery nationwide with Uber Eats by early 2020. The partnership allows customers to place orders through Uber Eats app and track those orders in real-time. The company currently delivers its coffee in 11 markets.