Starbucks plans to double its stores in China

[Randy W]

in the Shanghaiist

 

Starbucks plans to double its stores in China to 5000 by 2021, opening a new one every day

 

 

Starbucks announced that it plans to double the number of its stores in China from more than 2,300 to 5,000 by 2021. According to CNN, Starbucks says that it will open more than one new store a day for the next five years.

 

[Randy W]

the Coffee from Yunnan is still excellent - just got a fresh shipment a few days ago - http://candleforlove.com/forums/topic/47688-buying-western-groceries-in-nanning/?p=620819

[Randy W]

 

the Coffee from Yunnan is still excellent . . .

 

 

. . . and Starbucks seems to agree! (from Reuters - Wed Nov 19, 2014).

 

Yunnan has altitudes up to 14,000 ft. with no freezes.

 

Starbucks scoops up coffee beans from China for blends, Asia sales

The world's biggest coffee chain imported nearly 14,000 bags of arabica beans from China into the United States in the first nine months of 2014, more than five times last year's total, according to data from shipping intelligence firm PIERS, which aggregates cargo manifest details from customs data.

That is a fraction of total coffee imports by Starbucks - also the leading overall importer - from across the globe in the January-September period, but the company's purchases represent more than half of China's coffee imports in the United States.

The jump this year from less than 2,600 60-kg bags in 2013 partly reflects growth in Starbucks' nascent retail business in China, where a growing urban population is drinking more coffee.

Some of the beans are roasted in the United States and then shipped back to China for sale in the fledging consumer market, a spokeswoman said in an email. The rest are included in blends available globally, she said.

Starbucks two years ago launched its first operation in Yunnan, China's main coffee-growing province, but does not have a roasting facility in Asia, she said. Nestle SA has been active in the region for decades.

News last month that Volcafe, the coffee arm of London-based commodities trader ED&F Man, will set up shop in Yunnan was the strongest sign yet that merchants are taking China seriously as a supplier of high-quality arabica beans on the global market.

 

. . .

 

In 2014, the United States is on track to import almost 75,000 60-kg bags from China, more than 2013 and up from an average of 5,700 bags a decade ago, according to U.S. International Trade Commission data.

 

[Greg.D.]

Such a shame: all that nice Yunnan coffee that Starbucks will buy and roast until its burnt.

[Randy W]

On 10/22/2016 at 10:24 PM, Greg.D. said:

Such a shame: all that nice Yunnan coffee that Starbucks will buy and roast until its burnt.

The guy we buy from says that I'M his only customer who likes the dark roast - LOL

 

from the People's Daily Facebook okay so it's a slow news day edition

'First kiss' coffee in Yunnan province

 

 

Quote

In many places in southwestern China's Yunnan province, it's not uncommon to manually peel coffee beans using one's mouth - a traditional, primitive way of preparing coffee beans. Coffee made from beans prepared this way is sometimes known as "first kiss" coffee.

The prevelance of this habit can be partially attributed to a love story in which a young woman miraculously saves the life of her war-wounded beloved by feeding him coffee made from coffee beans she peels with her own mouth.

Yunnan has a long history when it comes to coffee production. Zhukula Coffee in Yunnan, known as the oldest coffee in China, was first introduced to the remote village of Zhukula by a French missionary 120 years ago. Today, local residents are trying to make Zhukula coffee a well-known brand.

 

Edited June 23, 2023 by Randy W (see edit history)

[Randy W]

Just ordered another batch from our store in Lijiang today!

 

There's a new kid in some towns!

 

With rumored Series A, Luckin Coffee may become China's first coffee unicorn

 

Luckin Coffee started trial operations at the beginning of this year and has undertaken aggressive expansion. It opened 40 stores in the week of June 5. Until now, it has opened more than 500 stores in 13 cities. During an interview in early May, funder and CEO Qian Yazhi, former COO at UCAR, one of China’s biggest car rental services, said the company had served more than 1.3 million customers and sold around 5 million cups.

The company defines itself as part of China’s “new retail” trend, combining e-commerce platform and brick and mortar stores. After placing orders online, customers can choose to either pick them up in nearby stores or have them delivered within 30 minutes which will only be possible if there is a sufficient number of stores in the region.

. . .

Coffee consumption in China has been rising. Coffee consumption grows 15% annually and the market is expected to reach RMB 1 trillion in 2025. Before Luckin Coffee, other “new retail” coffee brands have also started to gain grounds in China. Coffee Box (连咖啡), a coffee delivery platform, raised RMB 158 million in series B+ funding.

 

 

[dnoblett]

I wonder if they will reopen the one in Forbidden City?

 

https://www.npr.org/templates/story/story.php?storyId=12026402

[Randy W]

from Bloomberg in China Daily HK

 

China coffee unicorn splashing millions to overtake Starbucks

 

Chasing the entrenched rival, it’s burning through US$130 million a year, according to the Xiamen-based company on China’s southeast coast.

 

. . .

 

The outlets, in or near office buildings, are designed for fast pick-up and delivery -- and exploits a competitive edge where Starbucks has been late to the game. Despite Chinese consumers’ reliance on food delivery, Starbucks only launched delivery in partnership with Alibaba Group Holding in August.

. . .

Luckin has made headlines for setting a target of 4,500 stores this year, most no larger than a studio apartment rather than sit-down cafes. Still, they would outstrip Starbucks’ count of about 3,600. For its part, Starbucks is also setting up small, delivery-focused kitchens in Alibaba’s Freshippo supermarkets and more than 2,000 of its stores are now equipped for delivery.

 

. . .

 

The local upstart is reliant on discounts and promotions to lure customers, which may create an unsustainable spike in demand. China’s landscape is littered with start-ups whose cash-burn models and flashy press never translated to profitability.

 

. . .

 

Mainland consumers currently drink just 4 to 5 cups per capita, compared to about 300 cups in places like Taiwan, Hong Kong and South Korea, he said.

Even as it mounts its challenge, Luckin still looks to Starbucks to lead the way with its considerably larger resources in promoting coffee consumption in China, a traditionally tea-drinking country. Luckin will focus on expanding in tier 1 and 2 cities, while waiting to see how Starbucks fares deeper in rural China, he said.

 

 

[Randy W]

from Bloomberg in China Daily HK - Luckin is also known by its Chinese name Ruixing (瑞幸咖啡 - Ruì xìng kāfēi)

 

http://www.luckincoffee.com/

 

 

 

China coffee unicorn splashing millions to overtake Starbucks

 

Chasing the entrenched rival, it’s burning through US$130 million a year, according to the Xiamen-based company on China’s southeast coast.

 

. . .

 

The outlets, in or near office buildings, are designed for fast pick-up and delivery -- and exploits a competitive edge where Starbucks has been late to the game. Despite Chinese consumers’ reliance on food delivery, Starbucks only launched delivery in partnership with Alibaba Group Holding in August.

. . .

Luckin has made headlines for setting a target of 4,500 stores this year, most no larger than a studio apartment rather than sit-down cafes. Still, they would outstrip Starbucks’ count of about 3,600. For its part, Starbucks is also setting up small, delivery-focused kitchens in Alibaba’s Freshippo supermarkets and more than 2,000 of its stores are now equipped for delivery.

 

. . .

 

The local upstart is reliant on discounts and promotions to lure customers, which may create an unsustainable spike in demand. China’s landscape is littered with start-ups whose cash-burn models and flashy press never translated to profitability.

 

. . .

 

Mainland consumers currently drink just 4 to 5 cups per capita, compared to about 300 cups in places like Taiwan, Hong Kong and South Korea, he said.

Even as it mounts its challenge, Luckin still looks to Starbucks to lead the way with its considerably larger resources in promoting coffee consumption in China, a traditionally tea-drinking country. Luckin will focus on expanding in tier 1 and 2 cities, while waiting to see how Starbucks fares deeper in rural China, he said.

 

 

[Randy W]

(repeating) Luckin is also known by its Chinese name Ruixing (瑞幸咖啡 - Ruì xìng kāfēi)

 

from Barrons - The Luckin Coffee IPO Is Today. Here’s Everything You Need to Know About the ‘Starbucks of China’

 

Quote

Luckin Coffee stock began trading on the Nasdaq on Friday under the ticker LK.

 

 

from Xinhua on Facebook - https://www.facebook.com/XH.NewsAgency/photos/a.446942328709816/2572184662852228/

 

Quote

中国咖啡连锁企业瑞幸咖啡近日在美国纳斯达克交易所上市交易。本次首次公开募股共发行3300万股美国存托凭证（ADS），每股定价17美元，共募集资金5.61亿美元。瑞幸咖啡首席财务官兼首席战略官雷努特·舍克尔认为，瑞幸咖啡聚焦于外卖咖啡市场，优势在于更好的顾客体验以及小规模店面带来的低成本。

Chinese coffee chain company, coffee recently traded on the U.S. the exchange. The first public ipo issued a total of 33000 million U.S. Depository Vouchers (ads), priced at $ 17 each, with a total of $ 561 million. , coffee chief financial officer and chief strategic officer, leh shekels, believes that, coffee is focusing on the takeaway coffee market, with the advantage of better customer experience and low cost for small-scale stores.

 

 

 

 

https://www.facebook.com/XH.NewsAgency/photos/a.446942328709816/2572184662852228/

Edited June 23, 2023 by Randy W (see edit history)

[Randy W]

. . . and now back to half. From the SCMP

 

 

Starbucks and hotpot chain Haidilao close mainland China stores in response to Wuhan coronavirus outbreak

 

 

Starbucks to close more than half of its mainland China outlets, said it expects outbreak to ‘materially affect’ its results

 

 

https://www.scmp.com/business/companies/article/3048008/starbucks-and-hotpot-chain-haidilao-close-mainland-china-stores

 

 

The company said it expected the closures to be temporary, but did not give a timetable for when it would reopen stores. It said it would monitor and modify operating hours for all of its outlets in the mainland in response to the viral outbreak.

Starbucks said it could not estimate the duration of the disruption or how it would reduce customer traffic, but expected the outbreak would “materially affect” its financial results for the second quarter and the full year.

 

[Randy W]

On 5/19/2019 at 2:52 PM, Randy W said:

(repeating) Luckin is also known by its Chinese name Ruixing (瑞幸咖啡 - Ruì xìng kāfēi)

 

from Barrons - The Luckin Coffee IPO Is Today. Here’s Everything You Need to Know About the ‘Starbucks of China’

 

 

from Xinhua on Facebook - https://www.facebook.com/XH.NewsAgency/photos/a.446942328709816/2572184662852228/

 

 

 

 

https://www.facebook.com/XH.NewsAgency/photos/a.446942328709816/2572184662852228/

The Chinese coffee giant has recovered spectacularly from bankruptcy with a new strategy of expanding in smaller, less affluent cities around the country. But it also faces competition from domestic rivals, including one launched by its co-founders.

from the Sixth Tone on Facebook
https://www.facebook.com/sixthtone/posts/pfbid0cN2ciiYbjAE7RvqYTNVmMW63Sky6ZpjFjpt1oK1n5TpGscokfi18BukrgkPfUqp2l

Previously - 

Luckin Coffee Under Investigation by China’s Top Commerce Regulator
http://candleforlove.com/forums/topic/47391-in-the-financial-news/page/6/#comment-645006

WSJ

[Randy W]

For the first time, Luckin Coffee reported single-quarter net revenue exceeding Starbucks. Luckin’s total net income was $864.8 million last quarter, 5.2% higher than Starbucks.

Check out more Daily Tones: https://ow.ly/JCFk50PtI5Q

from the Sixth Tone on Facebook 
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