Starbucks Corp.

Starbucks Corporation (NASDAQ:SBUX) Made a Genius Move

Date Published: 7-14-2016

Author: Ophir Gottlieb

BREAKING
According to report published by the BUSINESS INSIDER, Starbucks Corporation (NASDAQ:SBUX) just made a genius move to expand its heavily visited stores into a coffee shop with a fresh bakery.

STORY
Starbucks Corporation (NASDAQ:SBUX) is famously known for its impeccable management as it has grown the coffee business to huge heights. Here is a sixteen year revenue chart for the company.

For the most recent (annual) period the company reported $20.16 billion up from $17.70 billion a year ago, or a 13.9% rise. Two years ago revenue (TTM) was $15.64 billion which is a 28.9% rise.

But the company isn't sitting on its laurels. Starbucks Corporation CEO, Howard Schultz, has made a strong move into China with perhaps the most genius plan of expansion any company, food or technology has ever made. Without reliving the details too much, Schultz's plan gets in to the heart of Chinese culture and family, taking in a holistic approach to the country's norms as opposed to simply opening coffee shops and expecting pay dirt.

But Starbucks Corporation plan for the United States just a got lot tastier as well. Here's a snippet from the BI article:

“
Starbucks is opening a new type of store and, for the first time, baking food in-house at certain locations, thanks to a partnership with a trendy Italian bakery.

On Wednesday, Starbucks announced a partnership with Princi, an artisan Italian bakery and restaurant.

”

Schultz commented that "This will be the first time in our 45-year history that we will actually be baking in a store. The Roasteries in New York and Shanghai, and others that will be announced in coming months, will have a fully-integrated bakery operation in the facility, not unlike what we're doing in terms of roasting."

We note the emphasis that Schultz put on mentioning China.

PRINCI AND STARBUCKS CORPORATION
While Starbucks Corporation stores are known for nearly around the clock access, so too is Princi known for its around-the-clock menu. With the staggering foot traffic that Starbucks already gets, the addition of a fresh on site bakery with a menu that ranges from breakfast to dinner, Howard Schultz may be on track to turn Starbucks Corporation (NASDAQ:SBUX) into an even bigger player, this time in the restaurant business.

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