In 1971 the first Starbucks opened in Seattle at the Pike Place Market that was 43 years ago. Today, as they race closer to the 50 year anniversary Starbucks looks more like a company of tomorrow than a company of yesterday.
During the first 20+ years CEO Howard Schultz refused to sell food. Starbucks always sold non-food items that complemented and extended the Starbucks experience and brand yet Starbucks shied away from food. In fact with ease you can find article after article with definitive statements from Schultz that Starbucks would never sell food.
Success does leave clues and Starbucks customers were evolving and Schultz listened then began selling food. Selling food did not go so well at the beginning it may have been because the effort appeared half-hearted. That’s all changed.
During presentations Foodservice Solutions® Grocerant Guru™ asked the audience “if your company was 43 years old, had 20,510+ units operating around the world in the current prolonged economic conundrum how would your sales be up or down?” The vast majority of the audience responds with a resounding DOWN. Well, we all know today that. Starbucks has become a food & beverage merchant evolving an industry, consumers, and suppliers. Here are some of the recent numbers that edify our view Starbucks is a company of Tomorrow:
1. 6% Global Comp Growth Drove Revenues to $3.9 Billion
2. 6% Global Same Store Sales Growth
3. U.S. Growth a Positive 6%
4. Non-traditional channel development growth up 10%
5. Consolidated operating income up 18%
6. Earnings Per Share up 17%
How long has your restaurant been in open? Are your sales growing at 6+ percent? When your customers evolve you company must evolve as well. Howard Schultz is to be commended for both following the consumer and leading an industry by changing who he sells, what he sells and where he sells food, beverages, and products.
The Ready-2-Eat and Heat-N-Eat fresh prepared food aka grocerant niche has no better example of success than Starbucks. Starbucks ability to adapt and evolve with consumers and willingness to extend its brand and products within our current Omni-channel retail is an example for all.
For international corporate presentations, educational forums, or keynotes contact: Steven Johnson at www.FoodserviceSolutions.us His extensive experience as a multi-unit restaurant operator, consultant, brand / product positioning expert and public speaking will leave success clues for all.