Starbucks and US President Jim Alling '83 Ramp Up Expansion Plans
October 7, 2006October 7, 2006, Greencastle, Ind. - Starbucks Coffee plans "to more than triple its stores to 40,000 worldwide," reports the Seattle Times. "Executives upped the goal from 30,000 locations, because they see few signs of market saturation, even in areas like Seattle, where the world's largest coffee chain would seem to have reached a limit. 'It defies standard retailing knowledge,' Jim Alling, president of Starbucks' U.S. operations, told a group of analysts and reporters." Alling is a 1983 graduate of DePauw University.
The article by Melissa Allison adds, "Starbucks continues to attract more customers at existing stores even as new stores open nearby, 'in some cases in the same building,' Alling said... About half of the (new) stores will be in the United States, where Starbucks currently has 8,800 shops."
The reporter also notes, "More than 70 percent of Starbucks' stores are in the United States, and about 70 percent of the 2,400 stores it plans to open this fiscal year will be in this country, too. The company estimates that 14.6 percent of the U.S. population visited a Starbucks in 2005, leaving room for growth. Its appeal is broadening as well, with the average household income for new customers falling from $92,000 five-plus years ago to $80,000 now."
Alling vows to reduce the time Starbucks customers wait in drive-through lines. "The customers let us get away with it, but they shouldn't. We should do better."Back