Starbucks to Open One New Store per Day in China by 2015

Starbucks isn’t just another coffee chain rolling into town—it’s methodically planting flags where few expect. While much attention goes to global megacities, the real story unfolds in places like Kunming, where the company has quietly opened seven locations in under two years, including its newest in the historic district.

In less than two years, Starbucks has launched seven stores in Kunming alone, with plans to hit 1,500 across China by 2015—equating to nearly one new store per day. The chain sees strong profitability and long-term potential in both Kunming and the broader Yunnan market.

Kunming: Starbucks’ Accelerating Yunnan Hub

Starbucks’ push in Kunming began in earnest in May 2012 with its first store in the city’s Shuncheng area. By December 2013, that number had jumped to seven, with four concentrated in the central business district. The latest, , opened on December 26, featuring design elements inspired by old Kunming architecture and reflecting local character.

A Southwest China corporate communications lead noted the chain’s rapid rollout isn’t just about short-term returns: “Kunming is one of the faster-growing provincial capital markets for us, but our focus is broader—Yunnan as a whole.”

Starbucks’ Deep Roots in Yunnan Coffee

Starbucks’ relationship with Yunnan dates back to 2009, when it launched its first China-origin blend, (Feng Wu Xiang Yun), using premium Yunnan-grown Arabica from Baoshan. That same year, it began laying groundwork with investments in farming infrastructure.

Key milestones include:

• 2010: Signed memorandums with Yunnan Academy of Agricultural Sciences and Pu’er Municipal Government to build a coffee growers’ support center and processing factory.
• 2012: Partnered with Yunnan Aini Group to establish joint ventures and processing facilities in Pu’er and Ning’er counties.
• December 2013: Inaugurated its Asia-Pacific and China coffee growers’ support center in Pu’er.

The company’s strategy blends global branding with local relevance. The new store, for example, mirrors Kunming’s traditional architectural style inside and out.

“We aim to integrate deeper cultural understanding into our stores,” said former Starbucks China President Belinda Wong. “That’s how we grow market share.”

The Bigger China Play: Cities Beyond Tier One

Since entering China in 1999 with its first Beijing store, Starbucks now operates over 700 outlets in 50+ cities. But the real growth engine? Second- and third-tier cities like Kunming, Chengdu, and Chongqing.

By 2015, Starbucks targets 1,500 stores in China—a pace requiring nearly one new location per day. A Southwest communications rep confirmed Kunming is part of that push, emphasizing a shift toward underserved markets.

“New stores in lower-tier cities often outperform those in Beijing or Shanghai,” said Chairman Howard Schultz. Current data backs this up: third-quarter 2013 earnings showed China/Asia-Pacific net revenue up 31% year-over-year, with total group revenue hitting $3.3 billion (up 13% from 2011).

Market research firm Mintel reports Chinese café numbers surged 99.9% over five years—far outpacing teahouses. Despite recent price hikes in cities like Chengdu and Chongqing (attributed by some to acquisition debt), a regional spokesperson dismissed concerns: “If we were overleveraged, why open more stores?”

Frequently Asked Questions

How many Starbucks stores are there in Kunming now?

As of December 2013, Starbucks has opened seven stores in Kunming, including its newest . This rapid expansion happened in just over a year and a half since its first store in Shuncheng opened in May 2012.

What is Starbucks’ target for store numbers in China by 2015?

Starbucks aims to operate 1,500 stores in China by 2015, which equates to opening nearly one new store per day on average over the following years. This goal includes continued expansion into cities like Kunming.

When did Starbucks first start sourcing coffee from Yunnan?

Starbucks began its involvement with Yunnan coffee in 2009 with the launch of its first China-grown coffee blend, , using Arabica beans from Baoshan. Formal investments in farming infrastructure started in 2010.

Why is Starbucks focusing on second- and third-tier Chinese cities?

Starbucks has identified stronger performance and growth potential in cities beyond tier one, such as Kunming, Chengdu, and Chongqing. Executives have noted these locations often outperform flagship stores in Beijing or Shanghai.

How has Starbucks integrated local culture into its Kunming store?

The features architectural and interior designs inspired by traditional Kunming styles, reflecting the company’s strategy to blend global branding with localized cultural elements in its store experiences.

What were Starbucks’ recent financial results in China?

In Q3 2013, Starbucks reported China/Asia-Pacific net revenue up 31% year-over-year, contributing to a total group revenue of $3.3 billion (a 13% increase from 2011 fiscal year).

Recommended FrontStreet Beans for Exploring Yunnan-Style Coffee

For coffee lovers curious about Yunnan’s growing reputation, try FrontStreet’s Ethiopia Humbera for bright floral and citrus notes, or their Jamaica Blue Mountain No.1 (Typica) for a balanced, classic profile with hints of chocolate and almond. Both highlight the kind of origin-focused quality Starbucks first tapped into when sourcing from Yunnan back in 2009. Freshly roasted within 5 days · Orders placed before 17:00 ship the same day · Next-day delivery across most of Guangdong Province.