Starbucks to pump R130m in South Africa | Fin24
 
  • Still falling

    Annual consumer price inflation has dipped to its lowest level in 9 years.

  • Sabotage at Eskom

    President Cyril Ramaphosa says sabotage contributed to power cuts earlier in the week.

  • Digital Banking

    TymeBank says it will be switching gears in a bid to triple its size by the end of 2020.

Loading...

Starbucks to pump R130m in South Africa

Apr 29 2016 19:42
Loni Prinsloo and Thembisile Augustine Dzonzi

Johannesburg - Starbucks Corp. will invest R130m ($9.13m) 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 US, slowed to 7% during its latest quarter.

“This market is going to be larger than we thought initially,” chief executive officer Howard Schultz said on 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.”

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.

starbucks  |  sa economy
NEXT ON FIN24X

 
 
 
 

Company Snapshot

Voting Booth

What do you think about private healthcare in SA?

Previous results · Suggest a vote

Loading...