China has become Starbucks‘ second largest and fastest growing market, and the American coffeehouse chain will be opening one store in China every 15 hours, reports Bloomberg.
With the company expecting China to overtake the U.S. market one day, the coffee giant has laid out plans 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 by that year, compared to a previous target of 5,000 by 2021.
Additionally, the company reached a $7.2-billion deal with Nestle SA earlier this month, giving the coffee giant the necessary funds to pursue its goal of accelerating expansion in China, as about fifteen percent of Starbucks’ revenue or $3.2 billion, came from its China and Asia Pacific markets in 2017.
Furthermore, the Starbucks deal with Nestle gives Nestle the right to market Starbucks products, and will expose the Seattle coffee brand to a whole new market in China. Nestle can now sell Starbucks-branded packaged coffee products in Chinese supermarkets, restaurants and catering operations, which Starbucks has not done previously. Also, the two brands plan to make coffee a sustainable agriculture product, through research and development and farmer support.
For the full story head on over to Bloomberg.
Previously, the world’s biggest and most futuristic Starbucks opened in Shanghai this past December.