Starbucks strikes deal to open stores in South Africa from 2016
Starbucks is to enter Sub-Saharan Africa for the first time after striking a deal with Johannesburg-based Taste Holding, which will see the company scoop an exclusive licensed partnership with the coffee giant.
Starbucks will open full-format stores across the region selling its entire range of food and beverages, alongside its digital services from 2016. The license agreement will see Taste own the exclusive rights to develop Starbucks retail outlets in South Africa and the business, meaning it will operate the stores directly.
“We are proud to be bringing Starbucks to South Africa next year,” said Kris Engskov, president of Starbucks Europe, the Middle East and Africa (EMEA). “Working with Taste, our partner, we’re going to deliver a great Starbucks experience. The coffee market here is vibrant and growing fast – we want to be part of that growth, bringing the passion and energy of this remarkable country into the design of our first store and our first barista team. We can’t wait to get started.”
Starbucks has also committed to continue Taste’s Changing Lanes program, which employs predominantly young candidates without jobs from the communities in which they trade.
“Young people are the key to our success,” continued Engskov in a statement. “The majority of our workforce is aged between 17 and 25 so talented youth has always been a priority and we will equip our new partners with the skills necessary to succeed in today’s economy".
The push into Southern Africa follows a major effort in France earlier this month. Starbucks announced that it had signed a deal with Casino Restauration that will see the coffee brand open stores within 127 Géant Casino Hypermarkets and 440 Casino Supermarkets.
Global net revenues at the coffee company jumped by 18 per cent to a record high of $4.6bn in the second quarter of 2015 while global store sales were up by 7 per cent.
In EMEA, Starbucks delivered its “strongest Q2 performance in history” with sales rising by 2 per cent.