Starbucks Growth Momentum Shifts to China
Steve M.C. | | Nov 09, 2016 01:51 AM EST |
(Photo : Getty images) Starbucks is planning to expand and more than double its store count in China in five years' time.
Starbucks is looking to make China the main hub of its operation. While at it, they also plan to add over 10,000 new employment opportunities every year.
Currently, Starbucks is a coffee guru in the US. The company is, however, looking to create a 30,000-square foot state of the art coffee house in Shanghai and double its store count to 5,000 by 2021.
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Belinda Wong, the recently appointed head of operations in China, described the projected coffee house as "the second Disneyland." In an interview with the Post as reported by the South China Morning Post, Wong, who was featured on Fortune China's annual list of most influential businesswomen since 2012, explained the companies' long-term projects.
"In China in the coming five years, we are definitely adding 10,000 plus new jobs every year. We open 500 stores a year and our goal is by 2021... to have 5,000 stores," she said.
"This is the early chapter of our China growth right now. We have barely touched the surface," she added.
According to Starbucks CEO Howard Shults, the mainland China outlets were already the most profitable. A post-earning report presented last week showed that China has a potential to overtake its home market in the US. This is strongly attributed to the middle-class' love for coffee since Starbucks opened in 1999.
In 2013, the company came under scrutiny by the state broadcaster after it allegedly had "inflated prices." However, such accusation did not interfere the company's growth.
Meanwhile, Starbucks has also accomplished on adding a local touch to their Chinese stores such as mooncakes and tea-flavored beverages that include mocha and oolong.
"We want to make sure we open stores that are not cookie cutters. There is plenty of space to infill in first and second tier cities where we have already opened," Wong said.
On the other hand, Wong also revealed that the Shanghai Roastery is going to be much better than the Seattle one, adding that it would attract both locals and tourists.
Tagschina, Starbucks, Shanghai, Second Disney Land
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