This week, Starbucks (NASDAQ: SBUX) is opening its biggest cafe in the world in Shanghai as China is becoming crucial for Starbucks.
The store in Shanghai is 30,000-square-foot, and it is the second Reserve Roastery of Starbucks. In 2014, the company’s flagship Reserve Roastery and Tasting Room opened in Seattle, and Starbucks said that it could open 20 to 30 Roastery stores worldwide.
During the most recent quarter, same-store sales increased 8% in China, compared with 2% increase globally. Additionally, revenue from the the Asia-Pacific region consisted of around 15% of total revenue for the last fiscal year.
“It's obvious to us that the holding power of China for Starbucks is going to be much more significant than the holding power of the U.S.,” Howard Schultz, the founder and Chairman of the company, said on Tuesday.
“Jack and I have spoken about a lot of different things,” he added, referring to Jack Ma, Alibaba’s Chairman. “The friendship and the shared values we have and their reach, our brand — there are things that we could do together,” Schultz said.
The store in Shanghai is only one of the five Roasteries that were expected to open before 2020. In 2018, the company planned to open Roasteries in Milan and New York, and in 2019, Starbucks will open Roasteries in Tokyo and Chicago.