Published: Thu, May 17, 2018
Health Care | By Cedric Leonard

Starbucks aims to triple China revenue by 2022

Starbucks aims to triple China revenue by 2022

"Starbucks will look to leverage the recently announced global coffee alliance with Nestle to provide even more at-home options to the Chinese consumer in the future", the company said. Its business is growing must faster than the expectations in China and in other countries too. "We are committed to long-term investment in China". Starbucks did not release a break down for just China as a standalone region.

Starbucks operates approximately 3,300 stores in 141 cities in China and employs 45,000 employees.

Starbucks has announced ambitious plans to double the number of stores across China to 6,000 locations by the end of 2022.

The strategy was announced out of the coffee giant's first investor conference in China this week, where attendees heard that between 2017 and 2022, about 600 new stores will open a year across the mainland - a figure that will almost double the brand's presence across the country.

It made $3.24 billion in China/Asia Pacific revenue in the past financial year while operating income was $764.8 million, according to calculations by Reuters.

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The push in the Chinese market comes as its stores in the USA face fierce competition from up-and-coming regional coffee houses and steep discounting from fast-food rivals. Customers these days prefer shopping while sitting at home.

In China, where cafe culture is less mature, but e-commerce more developed, Starbucks cafes have cornered the market on plush, but casual meeting spots.

Starbucks is shaping up an aspiring plan to compete in the race with KFC to become the quickest-growing foreign food chain with the unfolding of 600 new stores every year thus tripling the revenue by 2022.

Currently, 60 percent of transactions in its China stores are through mobile payments. Less than two years ago, the chain created goals to lift its store count to 5,000 by 2021, which was already a slightly accelerated version of its previous targets.

"We have built a business here in China over 20 years", Johnson said.

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