Starbucks to nearly double store count, triple revenue in China
Starbucks Corp. is accelerating the pace of expansion in one of its most important — and fastest-growing — markets.
The coffee giant announced plans to build 3,000 stores — 600 net new stores annually — during the next five years in Mainland China, which will double the market’s store count from its current 3,300 locations. Starbucks said it expects to more than triple revenue and more than double operating income in China by the end of fiscal year 2022 from fiscal year 2017.
“The power of our brand in China, the strength and momentum in our business, and the world-class Chinese leadership team give me great confidence in our ability to capture the enormous growth opportunities ahead in this dynamic market,” said Kevin Johnson, Starbucks president and CEO. “No Western company or brand is better positioned to evolve with the rapidly expanding Chinese middle class – and we continue to mindfully evolve a coffee culture in China where the reward will be healthy, long-term, profitable growth for decades to come. We are committed to long-term investment in China.”
Starbucks’ said its newest class of stores in China are delivering the highest average unit volumes, return on investment and profitability of any of the market’s prior store classes in its history. The company operates approximately 3,300 stores in 141 cities in China, with a new store opening every 15 hours.
In June, the company will open its newest multi-level flagship format, in the Beijing Fun shopping area. It will be Starbucks’ largest store globally (aside from its Roasteries concept).
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