Can Starbucks Find Room to Grow?
By Meghan Foley | January 25, 2013 5:59 AM EST
Starbucks ( after the market closes on Thursday, and analysts are expecting the company to report strong results thanks to an eventful six months. In the second half of 2012, Starbucks introduced its Verismo single-cup brewing system, acquired Atlanta-based Teavana for $620 million, and saw its stock price rise more than 10 percent. With these new advantages, the coffee company is planning to make aggressive expansion its mission this year.
Forbes estimated that the company will add in India began on October 19, when the Seattle-based coffee retailer opened its first cafe in the country with its partner, the Indian conglomerate Tata. Since then, the company has continued its foray into the country, announcing Thursday that it will open two more locations at the Indira Gandhi International Airport.
“We look forward to extending the unique Starbucks Experience and meeting the increasing demand for high quality coffee within travel channels in India,” Avani Saglani Davda, the chief executive officer of the joint venture, told The Economic Times. “With the entry into this segment, Starbucks will offer a differentiated breakfast menu that is carefully selected to cater to travelers, while providing an inviting and relaxed atmosphere to enjoy the legendary Starbucks Experience while in transit.”
Expansion in the Americas is also expected to be significant, with 600 new stores planned for the region as well. However, growth in the western hemisphere will be different. While Starbucks is looking to gain a foothold in India, where the coffee market is relatively small compared to the population, the company is focusing on its other brands in the United States, where it already has more than 11,000 stores. Not all of the new locations will be traditional Starbucks coffee shops, Teavana and Evolution juice bars will be part of the new additions.
Join the Conversation
- New Zealand Economy Benefits From Australia's Big Investments; Kiwi Down After RNBZ Comments
- ETF Outlook for Thursday, January 2 (FEZ, FXI, SPY, XHB)
- January Second Trading: Always Interesting
- 13 Things Investors Learned In 2013 - Part II
- Are Diversity and Quality the Way to Profit from the Rebound in Gold and Coal?
- Black Friday 2014 Sale: Top Deals On Game Consoles Xbox One, PS4, Nintendo Wii U And More
- Walmart Pre-Black Friday 2014 Sale On Nov. 21, 2014 Includes Discounts On The 'NBA 2K15' For PS4 And The 'Skylanders Trap Team’ Starter Kit [WATCH VIDEO]
- More Bad News for Android 5.0 Lollipop As Problems Come In for Nexus and Other Devices
- BlackBerry Classic (aka Q20) Keyboard Shortcuts Explained In A Quick Video
- US To Supply Defensive Lethal Weapons To Kiev – A Vey Alarming Signal, Says Russia
- Amazon Black Friday 2014 Deals Start On Nov. 21, 2014 Including Limited-Time Lightning Deals And Deals Of The Day On Clothes, Toys, Jewelry, Watches, Bags, Accessories And Electronics
- Samsung Galaxy Note Edge Battery Life Test Shows Its Curved Display And Build Has Impacted Its Battery Performance