Starbucks Corporation(NASDAQ:SBUX), the ubiquitous
coffee chain, plans to open 1500 more cafes in the United States, the company
said on Wednesday.
The company, which has an outlet around every corner,
said that would raise the number of its outlets by 13 percent by 2017, while in
that time period, it would add another 3,000 cafes in the broader Americas
region.
Starbucks, which just made an entry into the Indian
market, also plans to expand into other markets particularly in China, which is
expected to surpass Canada as Starbucks' second-biggest market in the next two
years, Associated Press said in a report.
By that time, Starbucks says it will have 20,000
stores globally, up from about 18,000.
The world's largest coffee chain hit a bit of rough
patch during the worst of the recession but has since been on a comeback path
after bringing back its founder Howard Schultz in 2008 to head the company.
The company then embarked on a massive restructuring
exercise which involved closing down about 10 percent of its stores in the U.S.
According to Cliff Burrows, who heads Starbucks'
domestic business, the problem wasn't that Starbucks was oversaturated, but
that the company hadn't been careful about its store openings.
In the years leading up to the downturn, the company
was opening well over 1,000 stores a year. That led to cafes in locations where
signs or traffic might not be optimal, he said.
However the company has been rationalising its store
location and closing down stores that were not viable, while opening stores in
other locations.
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