Starbucks Opened More New Stores During The Pandemic
Despite the ravages of the pandemic, the expansion plans of fast food chains continue their course until they materialize. Such is the case with Starbucks, which opened more new stores than the world’s largest chains.
Stores open around the world, with 15,500 in the US and 5,557 in China, together making up 61% of the Starbucks market. The number appears poised to continue to rise after years of steady growth at the coffee chain.
It added 484 new net stores in this period and 538 the previous quarter. For fiscal year 2021, it added 1,173 net new stores and 1,404 in fiscal year 2020. This breakneck expansion accompanies the consolidation of Starbucks revenues, reaching 8.1 billion dollars, an increase of 19% compared to the year previous.
According to the company, this was mainly driven by a 13% increase in sales in stores, “mainly comparable to overcoming the unfavorable impact of business interruption in the previous year due to the COVID-19 pandemic.”
And there not for viewing. The chain plans to open 2,000 net new stores in fiscal 2022, as reported by the company in late 2021. A few days ago, Starbucks Chairman and CEO Kevin Johnson addressed the issue of opening new stores.
“As long as we continue to deliver best-in-class profitability, return on investment, we will continue to build on new stores and play the long game,” he told investors on the first-quarter earnings call. Outside the US, growth is even more marked. Starbucks added 1,200 new stores in China in the past two years, accounting for a fifth of the total in the country, Starbucks China CEO Leo Tsoi added on the call.
“We are really in the early stages of these markets. And as we go, we go deeper and we get smarter, actually, our openness is helping us build our long-term success,” Tsoi said of plans to continue adding to the network’s numbers.
Starbucks opened more new stores than the world’s largest chains
Fast-food giant McDonald‘s has more than 38,000 locations worldwide and added nearly 1,000 new locations in 2020, as reported by CEO Chris Kempczinski. In turn, it opened 650 restaurants in 2021; For this 2022, the chain announced plans to open 1,800 new restaurants.
For its part, the Subway sandwich chain has long held the title of fast food chain with the most locations. It has nearly 40,000 locations worldwide, but that number is slowly shrinking. Subway closed more than 1,000 locations in 2019 and reportedly closed more than 2,000 in 2021. The exact number of closures has been disputed by the chain without providing details.
Declining sales and store closings put Starbucks within striking distance of overtaking the giant fast-food chains.
Starbucks Opened More New Stores During,The Pandemic - /10
Despite the ravages of the pandemic, the expansion plans of fast food chains continue their course until they materialize. Such is the case with Starbucks, which opened more new stores than the world's largest chains.