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

Trendingnow

1

Corporate America has been draining the world's water. Matt Damon's new campaign calls on Gap, Starbucks, and Amazon to help give it back

2

When SpaceX starts trading, some 'shareholders' will discover they own nothing at all

3

Analysts expected oil to surge above $200 but China has quietly kept prices half of that—and can’t for much longer

1

Corporate America has been draining the world's water. Matt Damon's new campaign calls on Gap, Starbucks, and Amazon to help give it back

2

When SpaceX starts trading, some 'shareholders' will discover they own nothing at all

3

Analysts expected oil to surge above $200 but China has quietly kept prices half of that—and can’t for much longer
RetailChina

Starbucks Has an Eye-Popping New China Plan: Open a Store Every 15 Hours For 4 Years

By
Bloomberg
Bloomberg
Down Arrow Button Icon
By
Bloomberg
Bloomberg
Down Arrow Button Icon
May 16, 2018, 6:26 AM ET

Starbucks Corp. unveiled a bold plan to more than triple revenue in China over the next five years, at a time when other American corporates worry that simmering trade tensions may disrupt their businesses in the world’s second-largest economy.

Starbucks (SBUX) plans to weather trade tensions by focusing on its Chinese employees and customer base, Chief Executive Officer Kevin Johnson said in an interview in Shanghai on Tuesday. The coffee giant laid out plans to compete with KFC in the race to become China’s fastest-growing foreign food chain by opening a new store every 15 hours through 2022. It plans to have 6,000 stores on the mainland then, compared with a previous target of 5,000 by 2021.

“China has a long runway of opportunity for Starbucks,” Johnson said as the chain kicked off a two-day investor conference in Shanghai, the first to be held outside of the U.S. “We can’t control what happens in the geopolitical situation. We are not immune to it, but we take a long-term view.”

The vote of confidence comes as 120 U.S. companies and business groups line up to oppose the Trump administration’s plan to slap tariffs on $50 billion in Chinese imports. A hearing on the levies — where companies including Best Buy and General Electric as well as lobby groups such as the National Retail Federation plan to testify — began on Tuesday.

Starbucks is increasingly reliant on China, where it has no close rivals, to prop up underwhelming sales growth in the U.S. and elsewhere. A $7.2-billion deal with Nestle (NSRGY) earlier this month gives the coffee giant the cash to pursue its goal of accelerating expansion in China, which is set to become Starbucks’ largest market within a decade.

The Seattle-based company also expects to more than double its operating profit in the country by fiscal year 2022. About 15% of Starbucks’ revenue came from its China and Asia Pacific markets — about $3.2 billion — in fiscal 2017, according to company data compiled by Bloomberg.

It currently has 3,300 outlets in China, compared with about 12,000 in the U.S., including licensed stores. Yum China Holdings (YUMC), which separated from Yum! Brands (YUM) in 2016, said it had 8,112 stores including KFC and Pizza Hut at the end of March.

The push in the China market comes as its stores in the U.S. face fierce competition from up-and-coming regional coffee houses and steep discounting from fast-food rivals. Consumers also are shopping more at home, shunning brick-and-mortar retail for e-commerce. 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.

Johnson said that while same-store sales in the U.S. have been weaker than expected, strong performance in new stores stateside means it’s still on track “to deliver U.S. growth within the targeted range that we’ve given of high single-digits.”

Nestle Deal

The Starbucks deal, which gives Nestle the right to market Starbucks products from beans to capsules, will also give the Seattle coffee brand access to a whole new market in China. Switzerland-based Nestle can now sell Starbucks-branded packaged coffee products in Chinese supermarkets, restaurants and catering operations. That’s something Starbucks hasn’t done previously in the country.

Nestle’s relationships with distributors, giving it access to 1.5 million outlets in China, “dramatically accelerates our ability to bring those coffees to market,” said Johnson. Introducing these products to China will be “one of the priorities that we focus on early” after the transaction closes, he said.

Besides the flagship Starbucks brand, the accord with Nestle includes the brands Seattle’s Best Coffee, Starbucks VIA, Torrefazione Italia and Teavana tea.

Nestle and Starbucks also plan to partner on efforts to make coffee a sustainable agriculture product, through research and development and farmer support, said Johnson.

In the market for ready-to-drink coffees, Starbucks remains in competition with Nestle. Besides its bottled Frappucinos and cold brews, the company will add chilled cups in June. Johnson said the company has a whole pipeline of innovation in ready-to-drink coffee products.

The 8.1 billion yuan ($1.3 billion) ready-to-drink coffee market in China is currently dominated by Nestle with 71% market share, according to data from Euromonitor International. Starbucks has 3.1%.

The coffee giant will also announce in a few months a new program for mobile ordering and delivery in China, said Starbucks China CEO Belinda Wong. Currently, 60% of transactions in its China stores are through mobile payment.

The growth is helping the coffee chain create 10,000 jobs a year in China. There, the company is keen to set itself apart by offering generous employee benefits, including health insurance for the parents of employees in a country where children often care for aging family members.

“We have built a business here in China over 20 years,” Johnson said. “We have built that business in China, for China.”

About the Author
By Bloomberg
See full bioRight Arrow Button Icon

Latest in Retail

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 Retail

Warehouse workers with robot
SuccessJobs
Walmart has a message for its 2.1 million workers: AI is going to improve your job, not take it: ‘Technology will power our future’
By Emma BurleighJune 12, 2026
2 hours ago
Agility Robotics Chief Executive Peggy Johnson speaks on stage at Brainstorm Tech 2026 in Aspen, Colorado.
AIBrainstorm Tech
Tech leaders argue AI’s real future Is task augmentation, not mass layoffs
By Sebastian HerreraJune 11, 2026
1 day ago
visa
AIVisa
Visa thinks it’s a great idea for AI agents to shop and pay for things without human approval
By Barbara Ortutay, Ken Sweet and The Associated PressJune 11, 2026
1 day ago
South Korea fines Coupang record $409 million for data breach
AsiaCoupang
South Korea fines Coupang record $409 million for data breach
By Jaehyun Eom, Shinhye Kang and BloombergJune 11, 2026
1 day ago
Honda recalls nearly 900,000 cars thanks to rear suspension problems
RetailHonda
Honda recalls nearly 900,000 cars thanks to rear suspension problems
By The Associated PressJune 10, 2026
2 days ago
Jamie Laing thinks tomorrow’s Fortune 500 will be built by creators. He might be right 
C-Suitecreator economy
Jamie Laing thinks tomorrow’s Fortune 500 will be built by creators. He might be right 
By Sam BirchallJune 10, 2026
2 days ago

Most Popular

Corporate America has been draining the world's water. Matt Damon's new campaign calls on Gap, Starbucks, and Amazon to help give it back
Environment
Corporate America has been draining the world's water. Matt Damon's new campaign calls on Gap, Starbucks, and Amazon to help give it back
By Catherina GioinoJune 9, 2026
3 days ago
When SpaceX starts trading, some 'shareholders' will discover they own nothing at all
Investing
When SpaceX starts trading, some 'shareholders' will discover they own nothing at all
By Jim EdwardsJune 12, 2026
7 hours ago
Analysts expected oil to surge above $200 but China has quietly kept prices half of that—and can’t for much longer
Energy
Analysts expected oil to surge above $200 but China has quietly kept prices half of that—and can’t for much longer
By Sasha RogelbergJune 10, 2026
2 days ago
Current price of oil as of June 11, 2026
Personal Finance
Current price of oil as of June 11, 2026
By Joseph HostetlerJune 11, 2026
1 day ago
American taxpayers have spent $33 billion on sports stadiums. They got fewer seats—and higher prices
Success
American taxpayers have spent $33 billion on sports stadiums. They got fewer seats—and higher prices
By Catherina GioinoJune 11, 2026
23 hours ago
Meet the SpaceX employees who are set to become multimillionaires thanks to its IPO: from execs to even welders
Success
Meet the SpaceX employees who are set to become multimillionaires thanks to its IPO: from execs to even welders
By Preston ForeJune 11, 2026
1 day 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.