Coffee and human connection are a global ritual – and growth opportunity
Brady Brewer, chief executive officer of Starbucks International, told investors that in his 25 years with the company, he’s experienced one prevailing truth.
“What I have consistently seen around the world is that the desire for human connection is universal. And coffee, one of the most widely shared rituals on the planet, plays a powerful role in bringing people together across cultures,” he said. “Those moments of connection between our customers and our partners are the secret to Starbucks success in every market where we operate and I see it all the time.”
Global away-from-home coffee sales have grown nearly 8% year over year, and Starbucks sees a long runway to double its international footprint to nearly 40,000 stores outside the U.S. As a company focused on coffee and connection, and one that’s already the leading premium brand globally, Brewer said Starbucks is perfectly positioned for growth.
“When you combine rising global demand for coffee with our expanding coffeehouse footprint, and then you add in the strength of customer love for Starbucks and the momentum of our back to Starbucks plan, the result is a powerful strategic advantage,” Brewer said.
Brewer told investors Starbucks plans to accelerate global growth by expanding access to the brand through an increasingly asset-light, higher‑margin international model built on licensed partnerships with world‑class local operators who can deliver a premium experience consistent to the brand but in locally relevant ways. In China, Starbucks has the opportunity to grow to 20,000 locations. In markets like India, Mexico and South Korea, the company has already expanded significantly, and 90% of future growth is expected to come from seasoned licensees.
Beyond coffeehouses, Starbucks’ global channel development business extends the brand into homes, offices and retail shelves, delivering additional high margin growth. Brewer closed by emphasizing that international is a powerful value creator for the company: “The opportunity is there and we are ready for it.”