Starbucks has room to grow? Not that I can tell…
Recently there was an article in Barron’s (subscription may be required) wherein the company says that there is room for 40,000 more locations, half in the US.
To me, there seems to be a Starbucks everywhere that will support one… and then some. In Watauga Texas, there is a Super Target. Inside the store is a Starbucks. In the parking lot is a Starbucks standalone. And across the street in the Albertson’s, another Starbucks. That’s three locations within 150 yards of each other.
My single experience overseas was the same. The photo below was taken in London near St. Paul’s Cathedral. You know and love the big green sign in the upper right… what is that little circle across the street…? These two locations are about 100 feet apart.
I am a fan of Starbucks, and I like what they are doing with music to create an experience that will keep people coming back for four-dollar coffee. It will be especially important to have that should oil and gas prices keep running, and force people into choosing what discretionary spending they forego to pay at the pump. But the truth is, there are places in America that demographically cannot support the Starbucks habit… and it seems that every place that can already has two or more locations.
Disclosure: I do not hold any positions in the stocks mentioned here. I am not a professional, but I am trying this at home. It is highly recommended that you consult a licensed financial advisor or broker before making any and all investment decisions.
