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
Lab equipment maker Thermo Fisher Scientific Inc. has agreed to acquire electron microscope maker FEI Co. for about $4.2 billion in cash, the two companies said Friday. Thermo Fisher noted that FEI's electron microscopy platform will complement its own mass spectrometry systems to accelerate advancements in structural biology. While reporting a wider loss for the first quarter, Sears Holdings Corp. said it has decided to "aggressively evaluate" all potential alternatives for its top brands - Kenmore, Craftsman and DieHard or KCD, and the Sears Home Services or SHS businesses. Sears has retained Citigroup Global Markets and LionTree Advisors to assist in its efforts. Philips Lighting, the splinter group of Dutch consumer electronics giant Philips, saw its shares rally around 8.50 percent on its debut on Friday at the Amsterdam stock exchange. The shares are currently at 21.70 euros, above its set pricing of 20 euros per share.
comments powered by Disqus
Follow RTT