Starbucks Corporation will set in motion a speedy expansion plan in China as the world's biggest coffee chain company sees "enormous, immediate and high-value opportunities" in the country.
At an investors' meeting held in its China headquarters last week, the U.S.-based company explained its plan to expand its network to 3,400 stores all over the country over the next five years.
Currently, the coffee chain already has 1,400 stores that cater to more than 3 million coffee lovers every week in 84 cities.
According to Starbucks China President Belinda Wong, the country is considered as one of the fastest growing markets for cafes.
During the meeting, she explained the company's plan to add 400 stores every year for the next five years, expanding more rapidly than it has in recent years, with the company opening 317 new stores last year.
Around 850 out of the planned 1,650 additional Starbucks outlets are set to be located in Asia, most of which will be in China.
China Market Research Group Associate Principal James Roy noted how Starbucks remained profitable in China in spite of high rent and labor costs, citing that the coffee chain gained more profit in the Asian country than in the U.S. due to the strong demand in the premium products.
"People are basically willing to pay that price," he explained, adding that the coffee chain does not only provide its customers with the products but also "sells an experience" of meeting new people.
Meanwhile, Mintel Group Ltd. Analyst Esther Lau said that the company's plan to increase its network in the country might have a huge impact on small, independent coffee shops, as the coffee chain plans to expand its menu by adding beer and wine to the mix.
Mintel revealed a forecasted increase in the value of Starbucks over the next five years, with estimated sales of 86.8 billion yuan ($14.16 billion) by the end of 2019.