logo
Share SHARE
FONT-SIZE Plus   Neg

Reports: Starbucks To Triple China Workforce, Stores In 3 Years

Starbucks Corp. (SBUX) plans to triple the number of shops as well as workforce in China over the next three years in an effort to tap a market that is estimated to become the second-biggest for the coffee chain by 2014, reports said.

The company will have about 1500 shops by 2015, spread over 70 citites in China and will look at expansion through smaller cities. At present, Starbucks has about 10,000 employees working in over 500 stores in the world's second-largest economy.

China, renowned for its tea history, is one of Starbucks' growth stories outside the home market. With coffee shops spotted around almost every corner of streets, these are becoming a socializing point for the people.

In the first quarter, the company's China/Asia-Pacific segment revenue jumped 38 percent to $166.9 million due to revenues from 85 new stores and a 20 percent increase in same-store sales.

A recent price increase by the company in China to offset rising costs did not discourage customers, indicating that the business has a great untapped potential.

America's iconic coffee brand late last month launched a new line of "Refreshers" coffee-based beverages, taking a shot at energy and juice drinks. The brand is expected to take on well known energy drink brands such as Red Bull, Monster and Rockstar.

Starbucks Refreshers will be real fruit-flavored ready-to-drink carbonated energy drinks made with a virtually flavorless extract of green, unroasted coffee, and less caffeine. The drink will reportedly contain a mild caffeine content.

SBUX closed on Friday at $55.89, up $0.16 or 0.29 percent, on 4.49 million shares and dropped $0.91 in the extended trade.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Struggling fast-food giant McDonald's is trying to woo back customers to its stores with a new concept called "Experience of the Future." According to reports, as part of its "Experience of the Future" initiative McDonald's is planning to upgrade and renovate its restaurants that will provide modern... Facebook might be launching smart speakers with a touch panel next year. The touch screen could be used for 15-inch display of imageries. According to reports Facebook has already begun the pilot production in China. The new device is expected to be launched in the first quarter of 2018. Britain is the latest nation to announce that it will end the sale of new petrol and diesel cars in an effort to reduce air pollution. Britain said it will ban the sale of new petrol and diesel cars from 2040. In early July, France said it plans to end sales of all petrol and diesel vehicles in the country by 2040 as part of a plan to meet its targets under the Paris climate accord.
comments powered by Disqus
Follow RTT