There are several plans currently in place at Starbucks, aimed at accelerating growth. All of them are currently bringing in results. The rewards program has been expanded, new products have been developed, technology has been improved and new restaurants are being aggressively opened.
Due to these measures, sales have increased by around 6% globally during Q3, as per the latest announcement from Starbucks. Net sales figures have increased by 8.1% as well, and are currently at $6.8B, the highest ever.
Due to this successful quarter, the company has improved its outlook for 2019. The previous year saw CEO Johnson declare many strategic priorities for achieving sustainable growth. One of them happens to be increasing the number of stores. In Q3, over 442 new stores were added, with over 33% located in China. Its 30000th store was also opened this year, with this quarter ending with 30600 operational stores.
Starbucks has also improved the rewards program, making it more attractive and helping it add around 14% more members, reaching 17.2M altogether.
New products have also been launched as Starbucks and Nestle go ahead with their partnership. Nespresso pods and Starbucks coffee creamers have been launched so far. Menu items have also been added in cafes.
These efforts have boosted Starbucks in 2 markets – China and the USA. USA-based stores which have been operating for over a year saw a growth of 7%, along with afternoon sales growing for the 1st time in 3 years. Growth was around 6% in China.
Johnson announced in his statement on Thursday that Starbucks was performing exceptionally well via these measures implemented in these countries.
Coffee shop customer experiences are also being improved along with the expansion of delivery locations. However, the latter move hasn’t begun to yield any meaningful results, noted Johnson during an earnings discussion.
He stated that delivery was a major growth opportunity in the long run as customers start demanding increased conveniences. Starbucks also announced that it would begin a partnership with food-delivery service Uber Eats for expansion of delivery services in the USA. The company’s stocks rose by 6% after markets closed