Starbucks brews strong expansion plan

BEIJING: Starbucks, the world’s biggest coffee chain, plans to more than double the rate at which it opens stores to an average of more than one a day during the next 12 months, as the global economy recovers.

“Our ability to navigate through the financial crisis and come out much stronger gives us reason to start growing the company again,” chief executive officer Howard Schultz said in an interview in China’s Yunnan province. He plans to open 500 stores in the fiscal year that began in October, with 400 outside the US, he said.

China, which offers the best opportunities for investment over the next year according to a survey, will be Starbucks’ biggest growth market in two years, Schultz said. Jinlong Wang, the restaurant operator’s China chief, said outlets in the world’s most populous nation will exceed 1,000 in the ‘near future’.

Coffee chain operators are expanding in the world’s fastest-growing major economy, as increasingly affluent consumers buy more beverages in coffee shops. Starbucks seeks to boost coffee consumption in China, which is at an annual 22 grams per person, compared with an estimated 3.3 kg in Japan, according to data from roaster Key Coffee.

Still, Schultz said “one needs to continue to be mindful of the fragile nature of the global economy.”