Starbucks Corp. announced that it wants to triple revenue as well as double its number of stores in China during the next four years, doubling down there as growth in the U.S. comes under heavy pressure.
The coffeehouse chain recently raised over $7.15 billion through a deal with Nestle SA, is aiming to have more than 6.000 stores in China before the end of 2022. It currently has 3,300 stores across 141 cities.
Starbucks is the dominant figure in the coffee scene of China, although it has seen increased competition from much smaller rivals, the same way it has come under pressure from boutique coffee roasters and less expense rivals across the U.S.
Late in 2017, Starbucks launched its first Reserve Roastery overseas. The flagship store that has gourmet coffee and baked goods, is located in Shanghai and Howard Schultz the executive chairman said that store numbers across China would reach 10,000 within the next decade and eventually overtake the market in the U.S.
Starbucks said as well that it is expecting to more than double operating incomes for China over the upcoming five years, relative to that figure in 2017.
Revenue for the China/Asia Pacific region in its last financial year was $3.24 billion while its operating income ended at $754.7 million. Starbucks did not release a break down for just China as a standalone region.
In May, Starbucks entered into a deal with Swiss food giant Nestle, the largest food and beverage company in the world, to give the company the exclusive rights to sell packaged coffees as well as teas from Starbuck across the globe.
Starbucks has said that the alliance it made with Nestle would help to further extend the company’s reach as well as scale across all of China.
Starbucks is looking to leverage the worldwide coffee alliance it recently announced with Nestle in order to provide even more options at home for the consumer in China in the near future, said the company through a prepared statement released at the time the alliance was announced earlier this month.