Opening over 17,000 more coffee shops and still cutting three billion dollars in costs? Starbucks aims to do them both, following a better-than-expected quarter.
Coffee seems to be one of the few small luxuries that consumers still allow themselves to enjoy: Starbucks ended last quarter with a sales rise of 11 % to 9.4 billion dollars (9 billion euros). On a like-for-like basis, sales were up 8 %. Outside of the United States, sales climbed 5 % as customers visited the stores more often again. The chain also benefited from recovery in China, despite average order amounts decreasing 3 % there.
Profits went up from 878 million to 1.2 billion dollars (1.1 billion euros), which was more than expected. This profit rise did not stop CEO Laxman Narasimhan from planning another three billion dollars in cost savings over the next three years, mainly by improving the supply chain and also making shops more efficient.
Seemingly at odds with these cost-cutting plans, Starbucks also announced rather massive expansion plans. By 2030, Starbucks wants to expand from the current 38,000 to 55,000 shops worldwide. The chain also wants to give its baristas more hours and higher wages.