Starbucks poised to lead the coffee industry in China
The number of stores in China has grown from 800 to 3,200 in the past five years, with an average of one new store opening every 15 hours.
Starbucks remains on track to open more than 5,000 stores in China by 2021 and will continue to drive market-leading and locally relevant innovation in coffee, store design and digital engagement to meet the lifestyle aspirations of its Chinese customers while contributing positively to the communities it serves.
According to an article by Motley Fool, whilst Starbucks' U.S. region may have its challenges, there is tremendous growth potential for Starbucks in China. Over the next five years, China's middle class should double from 300 million to 600 million (twice the size of the entire U.S. population). By 2030, it will surpass the U.S. as the largest economy in the world.
Shanghai has 600 Starbucks stores, the highest number of Starbucks in any city, whilst the Shanghai Roastery instantly became the highest-grossing Starbucks location in the world.
“We are humbled by how customers have embraced our third place experience, while the core of our success in China has been our partners, who deliver the unique moments of connections with our customers each day,” said Wong. “As a key growth engine for Starbucks, we are excited to continue to scale and imagine what is possible for Starbucks in China.”
The company also has plans to bring standalone Princi stores to Seattle, Chicago, New York and Shanghai and will open Roasteries in Milan and New York later this year, in addition to Tokyo and Chicago in 2019. Over time, Starbucks premium store segmentation will include more Starbucks Reserve Roasteries and up to 1,000 Reserve stores, and 20% of the Starbucks store portfolio will become Starbucks Reserve bar locations.
