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Starbucks plans 150 stores in South Africa – CEO

Plans to Invest R130m as the company starts its expansion in the continent’s most developed economy.

Starbucks Corp. will invest R130 million ($9.13 million) in South Africa over the next two years as the company starts its expansion in the continent’s most developed economy.

The world’s largest coffee-shop chain has been focused on adding locations in emerging markets, including China and India. The moves come as same-store sales gains shrink in Starbucks’ Americas region. Growth in the unit, which includes the U.S., slowed to 7% during its latest quarter.

Starbucks, brought in under licence by South Africa’s Taste Holdings, opened its first store last week in a mall in an affluent suburb of Johannesburg.

“I’ve never seen a line like this after a week of our opening,” Schultz told journalists at the store.  “This market is going to be larger than we thought initially,” Chief Executive Officer Howard Schultz said Friday at the Starbucks in Rosebank, one of the two locations that have been opened in Johannesburg. “We will take advantage of the growing middle class.” 

The US coffee chain plans to open up to 150 stores in South Africa.

About 34.8 million people are expected to buy meals from restaurants in South Africa by 2017, up from 31 million now, according to researcher Euromonitor International.

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Starbucks worldwide is not the best coffee outlet chain. In fact I usually avoid them when I am travelling as they are expensive and the coffee is nothing to write home about.

150 More places in South Africa to get a cup of expensive and lousy coffee at the consumers expense is amusing. Thanks, but no thanks.

Just give me a good cup of coffee.

Don’t complicate it with Starbucks.

It’s amazing just how many coffee critics are trashing Starbucks, yet have necer tried it? Why are so many people hellbent on seeing Starbuck’s demise? I see the foreign investment as a great thing! Think of how many jobs they will be providing? And Starbucks is more about the experience, but they also cater more to the experience through different products.

If you don’t like it, don’t buy it. But don’t forget the positives for our economy.

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