Starbucks Announces Latin America Expansion Strategy

Starbucks, the largest coffee chain in the world, revealed on Tuesday, June 19, that it is expanding aggressively in Latin America—the very region that supplies most of its coffee beans. This move comes amid strategic efforts to deepen its footprint in coffee-growing countries and boost both retail presence and agricultural engagement in the Americas.

In short: Starbucks will open its first location in Costa Rica on Wednesday, June 20, in the upscale Escazú district of San José. Over the next five years, it plans to open 'hundreds of restaurants' in Brazil, and open more than 300 cafes combined in Argentina and Mexico by the end of 2015. The announcement follows the opening of an agricultural support center in Manizales, Colombia earlier this month.

New Store Openings Across Latin America

Starbucks’ first physical store in Costa Rica is set to open in the Escazú neighborhood of the capital, San José, on June 20. This marks the brand’s official debut in the Central American country, which has long been part of the company’s coffee supply chain but lacked a retail presence until now.

The expansion also includes aggressive growth targets in South America. In Brazil—home to the largest coffee production in the world—Starbucks and its franchise partner Alsea aim to open hundreds of new cafes within the next five years. Further north, the company plans to launch more than 300 locations across Argentina and Mexico by the end of 2015. These moves are designed to establish a stronger consumer brand presence in key Latin American markets.

Supporting Coffee Growers in Colombia

Earlier in June, Starbucks opened an agricultural assistance center in Manizales, a city in western Colombia. The center is intended to help local coffee farmers improve yield and quality through training, resources, and technical expertise. This initiative reflects Starbucks’ long-term investment in sustainable coffee sourcing and producer support—key elements of its global supply chain strategy.

Stock Market Reaction

Following the announcement, Starbucks saw a 2% rise in its share price on the Nasdaq stock market, closing at $55.23 per share. Investors appear optimistic about the chain’s growth potential in underpenetrated Latin American markets, as well as its continued vertical integration with coffee producers.

Why Latin America Matters to Starbucks

Latin America is not only a major market for Starbucks retail expansion, but also the origin of much of the coffee the company sells globally. By increasing its retail presence and investing in agricultural infrastructure, Starbucks aims to strengthen both ends of its value chain—from farm to café. The planned openings in Brazil, Argentina, Mexico, and Costa Rica highlight the region’s strategic importance for long-term growth.

Frequently Asked Questions

When is Starbucks opening its first store in Costa Rica?

Starbucks will open its first store in Costa Rica on Wednesday, June 20, 2012, in the Escazú district of San José.

How many new stores does Starbucks plan to open in Brazil?

Starbucks and its partner Alsea plan to open 'hundreds of restaurants' in Brazil over the next five years, though an exact number has not been specified.

What other Latin American countries are included in the expansion?

Besides Costa Rica and Brazil, Starbucks plans to open more than 300 cafes combined in Argentina and Mexico by the end of 2015.

Did Starbucks open any new facilities in Colombia?

Yes, in early June 2012, Starbucks opened an agricultural assistance center in Manizales, Colombia, to support local coffee growers with training and resources to improve coffee quality and yield.

How did the stock market react to the expansion news?

Starbucks shares rose 2% to close at $55.23 on the Nasdaq following the announcement of its Latin America expansion plans.

Why is Starbucks expanding in Latin America?

Latin America is both a critical source of Starbucks’ coffee beans and an emerging market for retail growth. The expansion aims to increase brand presence, secure supply chain stability, and support local coffee producers.

Recommended FrontStreet Brazilian Single Origins

For a true taste of the Brazilian coffee that feeds much of Starbucks’ global supply, try FrontStreet Coffee’s Brazil Queen Manor—a high-elevation Yellow Bourbon from the rare Moji Guaçu region. It offers creamy textures, roasted peanut, toast, and nutty sweetness with low acidity and a smooth mouthfeel, perfect for filter or espresso. Alternatively, FrontStreet’s Classic Black Cocoa Blend contains a strong percentage of Brazilian beans, delivering a rounded, sweet, and velvety profile ideal for milk drinks. Both showcase Brazil’s signature chocolatey, nutty balance. Freshly roasted within 5 days · Orders placed before 17:00 ship the same day · Next-day delivery across most of Guangdong Province.