Starbucks in for Great Times in 2017
As the year comes to a close, people in online stock trading need to peer into the future a bit and make an estimate of how 2017 would be for some of the major stocks they’re dealing with.
Starbucks ($SBUX) had an active 2016, when it was announced that its CEO Howard Schultz, who’s been in this post for a long, long time, would be handing over his responsibilities to current COO Kevin Johnson on the 3rd of April, 2017. Schultz would then become the executive chairman and would not be involved anymore in daily operations.
What Will the Change of Leadership Bring About?
In 2017 we’ll see what Johnson, with his different experiences, brings to the table as CEO. He has been a member of the Starbucks board for 7 years and COO since 2015. But more significant is his Microsoft past, where he worked for 16 years holding senior positions. And that experience with a tech company is what Starbucks needs as it looks to use innovation to ensure better customer experiences that will help push sales back up again. It needs unique customer experiences to deal with the mild erosion of customer visits that the company has experienced this year.
The Reserve and Roastery Initiatives
Schultz, as we mentioned before, will not be gone. Though he won’t be CEO anymore, he will be carrying on his plans for building up a new brand by expanding the higher end Starbucks Reserve retail stores. The company has also innovated with its Roastery model. It plans to expand Starbucks Reserve Roasteries globally. The Reserve and Roastery initiatives will give customers a new experience, something that $SBUX hopes will bring in more people. There will also be Reserve experience bars in nearly 20% of Starbucks stores that offer coffee made in the Roastery locations.
Expanded Cold Coffee Menu
$SBUX has taken some cues from its rival Dunkin’ Brands ($DNKN), particularly with regard to its iced coffee menu. Back in 2015 Starbucks had introduced Cold Brew which turned out to be quite a hit. They then expanded the cold menu and introduced three other variants to it in select locations. The company says there will be more innovation in the cold menu since it believes this category will become twice as large in the coming three years. The company also has its bottled Cold Brew line which it says will expand. Cold Brew has been available in convenience stores and supermarkets from late 2016.
My Starbucks Barista App
Starbucks has also pioneered its app that includes Mobile Order & Pay. This is an area the company wishes to devote its resources to and where Johnson’s experience comes in handy. It has revealed the basic idea behind its yet-to-be introduced My Starbucks Barista interactive ordering system. The technology would enable customers to place their order through a messaging interface or via voice command. Initially it will be made available for the iPad and iPhone in limited beta in 2017. This should significantly help to improve customer experience and give Starbucks the vital edge over the competition.
So 2017 is a year to look forward to for those with $SBUX stock. For successful trading in the New Year, you need the right trading software and platform. TradeZero offers advanced software and trading platforms for 2017. Call us at +1 954-944-3885, or email us at firstname.lastname@example.org.
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