Schultz’s team is hard-pressed to grind out new profits in a
home market that is quickly becoming saturated. Amazingly,
with over 10,000 stores scattered across the United States and
Canada, there are still eight states in the United States with no
Starbucks stores. Frappuccino-free cities include Butte, Montana, and Fargo, North Dakota. But big cities, affluent suburbs,
and shopping malls are full to the brim. In coffee-crazed Seattle,
there is a Starbucks outlet for every 9,400 people, and the company considers that the upper limit of coffee-shop saturation. In
Manhattan’s 24 square miles, Starbucks has 124 cafés, with more
on the way. That’s one for every 12,000 people—meaning that there could be room for even more stores. Given such concentration, it is likely to take annual same-store sales increases of
10 percent or more if the company is going to match its historic
overall sales growth. That, as they might say at Starbucks, is a tall
order to fill.
Schultz’s team is hard-pressed to grind out new profits in ahome market that is quickly becoming saturated. Amazingly,with over 10,000 stores scattered across the United States andCanada, there are still eight states in the United States with noStarbucks stores. Frappuccino-free cities include Butte, Montana, and Fargo, North Dakota. But big cities, affluent suburbs,and shopping malls are full to the brim. In coffee-crazed Seattle,there is a Starbucks outlet for every 9,400 people, and the company considers that the upper limit of coffee-shop saturation. InManhattan’s 24 square miles, Starbucks has 124 cafés, with moreon the way. That’s one for every 12,000 people—meaning that there could be room for even more stores. Given such concentration, it is likely to take annual same-store sales increases of10 percent or more if the company is going to match its historicoverall sales growth. That, as they might say at Starbucks, is a tallorder to fill.
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