Starbucks to invest R130 million in SA across 150 stores
Starbucks, the world’s largest coffee-shop chain, plans to invest R130 million in South Africa over the next two years as the company begins its countrywide expansion. The American coffee chain intends to open as many as 150 stores in South Africa. Starbucks, brought in under licence by South Africa’s JSE-listed Taste Holdings, which has subsidiaries including Scooters Pizza, Domino's Pizza and NWJ, among others, opened its first store on 21 April in Rosebank, Johannesburg, and its second on 28 April in the brand new Mall of Africa, also in Johannesburg. Howard Schultz, Starbucks CEO, said the market looks like it is going to be larger than they initially thought. Schultz said:
"I've never seen a line like this after a week of our opening We will take advantage of the growing middle class."
Starbucks' expansion has included the addition of store locations in other emerging markets, such as China and India. This comes as sales gains shrink in Starbucks' Americas region.