Starbucks Coffee will expand store formats in FY15 with the launch of an interactive Starbucks Reserve Roastery and Tasting Room dedicated to roasting, coffee education and increased availability of their small-lot Starbucks Reserve coffees.
This consolidation of small-batch roasting will allow the company to expand their Starbucks Reserve coffee line to 1,500 locations globally, as well as open at least 100 stores designed to highlight these rare coffees exclusively.
Recognizing the diversity of needs across their customer base, Starbucks also plans to test small-footprint, express stores focused on offering convenience to customers. This evolution in store experience builds on the profitability of tailored, localized store design and formats.
Starbucks chairman, president and CEO Howard Schultz said: "Everything we have created and learned about coffee has led us to this moment.
"The Starbucks Reserve Roastery and Tasting room is a multi-sensory experience that will transform the future of specialty coffee.
"We plan to take this super premium experience to cities around the world, elevating the Starbucks experience not only through these stores but across our entire business."
In December, Starbucks plans to open its first Starbucks Reserve Roastery and Tasting Room designed to be an integrated coffee roasting, education and retail space allowing the company to expand its small-lot sourcing program and to serve as homage to the rich history of specialty coffee.
A union for Starbucks of coffee theatre and manufacturing will be established in Seattle.
Ten years ago, Starbucks first brought these premium coffees to customers with their line of Black Apron Exclusives.
Formally launched in 2010 under the Starbucks Reserve brand, the small-batch arabica coffees became available in select stores and online.
In addition to expanding this in-store offering, the company will create a specialized store experience devoted to highlighting these limited-availability coffees in at least 100 locations in the next five years. These locations will benefit from ongoing new store development and renovation programs.
In 2014, the new US store portfolio averaged over $1.2m in year-one sales with a return on investment of approximately 50% exceeding the best-in-class investment ratio of 2 to 1.
Complementing this expanding café experience, Starbucks will be investing in smaller, alternative store footprints that address the increase in urbanization and decentralization of retail.
With Drive Thru stores accounting for more than 40% of US company-operated stores and higher-than-average sales growth than non-Drive Thru locations, there is significant opportunity to meet commuting customers in smaller experiences.
Starbucks is on track to bring approximately 1,550 net new stores in FY14 and 1,600 net new stores in FY15 with nearly 300 net new company-operated locations in the US.
