Starbucks detailed its plan last month to almost double its annual revenue in five years time. Starbucks current twelve month earnings is US$16.4 billion, it plans to increase this to nearly US$30 billion in 2019. According to Fitch Ratings, Starbucks’ goal to radically accelerate profitable growth is more than achievable. Fitch expects Starbucks's revenue growth to continue to benefit from favourable global coffee consumption trends and the broadening of the company's multiple sales platforms. Starbucks is expanding its lunch and dinner offerings, growing in consumer-packaged goods, and launching mobile order-and-pay nationally in the UC in 2015. The recent launch of Starbucks Reserve and the company's advancement into digital ordering are examples of how the brand is developing. Starbucks’ recent acquisition of the remaining 60.5 per cent share of Starbucks Coffee Japan will add more than US$1 billion of annualised revenue. Fitch views Starbucks' strategy favourably, but believes some operating risks exist, including increased competition in global coffee and service-related challenges caused by advanced mobile ordering and continued expansion in food. Starbucks currently has approximately 21,370 stores globally and, as part of its five-year plan, is targeting more than 30,000 by the end of fiscal 2019.
Lavazza opens Dallas training centre
Global coffee giant Lavazza has celebrated the opening of its newest state-of-the-art training centre in Dallas, Texas, with the facility...
