Starbucks Opens Its Second Roastery as It Aims to Move Upmarket
Earlier this week, Starbucks (NASDAQ: SBUX) opened its second Starbucks Reserve Roastery. The pilot location opened in Starbucks' hometown of Seattle three years ago. Fittingly, the second Roastery is in Shanghai, the city with more Starbucks cafes (in excess of 600) than any other.
The opening of the Shanghai Roastery is one of the first tangible steps in a multiyear plan to move Starbucks further upmarket and bolster its brand. Success in this effort could determine whether Starbucks can continue to grow earnings per share at a double-digit rate over the next five to 10 years.
The first Starbucks Reserve Roastery in Seattle has performed extremely well thus far. At the company's investor day last year, Starbucks revealed that the average transaction price for the Seattle Roastery is four times the company average. Starbucks may be able to grow that further after it added fresh food from popular Italian bakery Princi to the Roastery menu last month.
Source: Fool.com
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