Despite escalating tensions in trade talks between the United States and China, Starbucks announced on Wednesday its big plans to nearly double its presence on the mainland of China.
The coffee production and retail giant announced that it will build almost 3,000 new storefront locations, bringing its total number of stores from 3,300 to 6,000 in the next four years. For those doing the math, that means the Seattle-based company will be opening 600 Starbucks per year in China, at a rate of one every 15 hours.
Although China is traditionally known as a country that favors tea over coffee, Starbucks is confident that its ambitious expansion will triple its revenue in China over the next five years.
With an already saturated market back in the US, Starbucks is hoping that its business will continue to grow at a record pace in China and other Asian nations as it has been for the last few months. Revenue in Asia skyrocketed over 50 percent last quarter when compared to the same period in the year prior. Compare that to domestic sales and revenue in Latin America, which saw an average earning of just 8 percent in the last earnings quarter.
The expansion announcement comes on the heels of the December opening of Starbucks’ largest store ever located in Shanghai. At 33,000 square feet, the store also sells tea and other traditional Chinese food and beverage offerings. As Chinese consumers continue to embrace portable beverages, the sky is the limit with Starbucks.