• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Ohio city workers are covering automated license plate readers with trash bags as officials sound the alarm on 'egregious violations' of privacy

2

Social Security unraveling: 7,100 workers sacked, performance metrics retired, disability claims falling

3

Erin Brockovich, the activist who defeated a utility giant and inspired a Julia Roberts film, is pushing data centers to be more transparent

1

Ohio city workers are covering automated license plate readers with trash bags as officials sound the alarm on 'egregious violations' of privacy

2

Social Security unraveling: 7,100 workers sacked, performance metrics retired, disability claims falling

3

Erin Brockovich, the activist who defeated a utility giant and inspired a Julia Roberts film, is pushing data centers to be more transparent
LeadershipStarbucks

How Starbucks CEO Howard Schultz Says He Can Win In China

Phil Wahba
By
Phil Wahba
Phil Wahba
Senior Writer
Down Arrow Button Icon
Phil Wahba
By
Phil Wahba
Phil Wahba
Senior Writer
Down Arrow Button Icon
January 12, 2016, 10:56 AM ET
A Starbucks cafe in Sanlitun.  For the third quarter of 2015
BEIJING, CHINA - 2015/08/08: A Starbucks cafe in Sanlitun. For the third quarter of 2015, Starbucks store sales increased by 11% for China. The Chinese market can serve as a long-term growth driver for the company. (Photo by Zhang Peng/LightRocket via Getty Images)Photograph by Zhang Peng — LightRocket via Getty Images

Starbucks (SUB) is betting big on China.

CEO Howard Schultz even told an audience of hundreds of employees and their families in Chengdu, China on Tuesday that he thinks the Middle Empire has the potential to one day be Starbucks’ top market.

And so Schultz announced a number of moves to make sure workers are on board, including generous housing subsidies and sabbaticals, at an event that featured a guest appearance by China’s most prominent businessman, Alibaba (BABA) founder and Executive Chairman Jack Ma. (Last month, Starbucks opened an e-store on Alibaba’s Tmall.)

Starbucks currently operates about 2,000 stores in China after 17 years in the country, compared to some 7,600 stateside. The company has plans to increase its Chinese fleet up to 3,400 locations by 2019, a tall order.

“As Starbucks’ second largest and fastest-growing market globally, China represents the most important and exciting opportunity ahead of us,” Schultz told the audience. “It’s conceivable that China could become our largest market.”

Cognizant of how some Western brands have thrived in China (KFC, pre-food safety scare, for one, and Estée Lauder (EL) for another) by deftly adapting to local culture, Schultz is in China for a multi-day charm offensive to show workers and customers that Starbucks is in tune with their values.

The coffee giant hosted a “Starbucks China Partner-Family Forum” to mark hitting the 2,000-store milestone. And though that might seem odd to Westerners, the company actively wooed employees’ parents, in acknowledgement of the strong role parents play in Chinese culture, even for adult children.

 

“We will do everything we can to continue to build a great and enduring company that you and your parents can be proud of,” he said. Schultz even spoke of wanting to make his own parents proud of his achievements.

But it wasn’t just sweet talk. Schultz said Starbucks will give full-time Chinese baristas and shift supervisors a monthly housing allowance that would cover half of their monthly housing expenditures on average, a tacit recognition of the importance of attracting and retaining talent in China. Starbucks will also offer one-year sabbaticals, called “career coffee breaks,” to workers with 10 years of service.

“Families play a tremendous role in the life and career choices for our partners in China and it’s important that we include their families in the conversation,” said Belinda Wong, president of Starbucks China.

In the United States, Starbucks has taken similar steps to enhance worker retention, offering assistance with college costs to employees in some instances, and free tuition to spouses and children of its employees who serve in the military.

About the Author
Phil Wahba
By Phil WahbaSenior Writer
LinkedIn iconTwitter icon

Phil Wahba is a senior writer at Fortune primarily focused on leadership coverage, with a prior focus on retail.

See full bioRight Arrow Button Icon

Latest in Leadership

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Leadership

Google CEO Sundar Pichai
AICorporate America
By every measure, U.S. companies are winning on AI adoption—but a series of high-profile snafus shows they’re getting pummeled by costs
By Tristan BoveJune 3, 2026
10 hours ago
dw
ConferencesCOO Summit
This CEO has had 6 major jobs in Silicon Valley: How Dennis Woodside built a career on saying yes to hard problems
By Nick LichtenbergJune 3, 2026
12 hours ago
dep
ConferencesCOO Summit
‘Will I still matter?’ The ‘Optimism Doctor’ says people can tolerate uncertainty—the AI angst is about something else
By Nick LichtenbergJune 3, 2026
12 hours ago
coo
ConferencesCOO Summit
From ‘reinvention exhaustion’ to ‘friction absorption’: the e-commerce elves who make your groceries and clothes appear are worn out
By Nick LichtenbergJune 3, 2026
12 hours ago
CHONGQING, CHINA - JANUARY 22: In this photo illustration, a smartphone displays the logo of Automatic Data Processing, Inc. (NASDAQ: ADP), an American provider of human capital management solutions including payroll, workforce management and business outsourcing services, in front of a screen showing the company's latest stock market chart on January 22, 2026, in Chongqing, China. (Photo illustration by Cheng Xin/Getty Images)
EconomyLabor
AI was supposed to be killing jobs. In spring, the labor market is opening up instead
By Eva RoytburgJune 3, 2026
13 hours ago
zhu
ConferencesCOO Summit
‘One thing after the next’: Axon and Schneider Electric supply chain chiefs talk life in permanent disruption
By Nick LichtenbergJune 3, 2026
14 hours ago

Most Popular

Ohio city workers are covering automated license plate readers with trash bags as officials sound the alarm on 'egregious violations' of privacy
Cybersecurity
Ohio city workers are covering automated license plate readers with trash bags as officials sound the alarm on 'egregious violations' of privacy
By Sasha RogelbergJune 3, 2026
16 hours ago
Social Security unraveling: 7,100 workers sacked, performance metrics retired, disability claims falling
North America
Social Security unraveling: 7,100 workers sacked, performance metrics retired, disability claims falling
By Katie Savin, Callie Freitag, Matthew Borus and The ConversationJune 2, 2026
2 days ago
Erin Brockovich, the activist who defeated a utility giant and inspired a Julia Roberts film, is pushing data centers to be more transparent
Environment
Erin Brockovich, the activist who defeated a utility giant and inspired a Julia Roberts film, is pushing data centers to be more transparent
By Marco Quiroz-GutierrezJune 1, 2026
2 days ago
Current price of oil as of June 3, 2026
Personal Finance
Current price of oil as of June 3, 2026
By Joseph HostetlerJune 3, 2026
17 hours ago
Southwest exec says the free bag and assigned seating overhaul is already paying off
Travel & Leisure
Southwest exec says the free bag and assigned seating overhaul is already paying off
By Preston ForeJune 2, 2026
1 day ago
Current price of oil as of June 2, 2026
Personal Finance
Current price of oil as of June 2, 2026
By Joseph HostetlerJune 2, 2026
2 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.