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Why Starbucks is optimistic about the Chinese and Indian markets

Published: 2025-12-28 Author: World Gafei

Last Updated: 2025/12/28, Howard Schultz, chief executive of the Starbucks coffee chain, said Starbucks' business in China has the potential to surpass that of the United States. Starbucks announced on the 26th that it plans to open its first international Starbucks boutique bakery in Shanghai, China, in 2017. American Consumer News and Business Channel (CNBC) quoted Schultz as saying that if one day, the number of Starbucks stores in China

Howard Schultz, CEO of Starbucks, said Starbucks 'business in China has the potential to surpass that in the United States. Starbucks announced plans to open its first international "Starbucks Boutique Bake Tasting Room" in Shanghai, China in 2017.

"I wouldn't be surprised if Starbucks had more stores in China than in the United States," CNBC quoted Schultz as saying on the same day. He said: "We have been very successful in China over the years and have been involved in breakfast very recently. We are training Chinese to drink coffee in the morning."

Starbucks now operates 2100 stores in more than 100 cities in China, with more than 300 stores in Shanghai alone. Schultz said in January that he expected China to become Starbucks 'largest market, but did not give a timetable. Starbucks revenue in China and Asia Pacific more than doubled year-on-year to more than $650 million in the fourth quarter of last year.

Starbucks coffee

While Schultz expects Starbucks to expand aggressively in China, he has no plans to speed up the pace of new store openings. Starbucks plans to add 500 stores a year in China over the next five years. Schultz is also optimistic about the long-term prospects of China's economy: "In the long run, we will succeed in China and create long-term value for shareholders." I am very optimistic about that."

Schultz is also bullish on India's market potential. Starbucks now has 100 stores in India.

"The Indian market will grow slower than the Chinese market because of infrastructure problems," he said.

Starbucks cup

For Starbucks, China and India will become key development markets, and the vast development space of these two countries is favored by many coffee brands. It seems that Starbucks will make big moves in China in the future. What brand strategy will Starbucks adopt without speeding up the establishment of new stores?