Starbucks plans China expansion, 80 new stores to open in 2008

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April 22 – Starbucks plans to open at least 80 outlets in China this year as consumers in the most populous country boost spending.

The world’s largest cafe chain has more than 300 stories in China and plans to hire thousands over the next two years in to support the planned expansion, the company’s greater China president, Wang Jinlong told Bloomberg TV. According to Wang, the company currently has 4,000 employees in China.

Starbucks has long viewed the large potential of the Chinese market with interest, and the improving standard of living in China’s first- and second-tier cities, as well as a growing taste for coffee are both viewed by the company as a large, untapped potential.

According to Bloomberg, China’s per-capita urban disposable income rose 16.2 percent in 2007, the seventh year in a row the number increased by more than 10 percent.

Starbucks is also likely to develop operations in China’s third-tier cities, while still maintaining its presence in the larger first- and second-tier metropolises. The Seattle-based chain currently has more than 100 stores in Shanghai.

With 80 new stores opening in China this year, expect what Suzhou-based consultant Bill Dodson calls “The Starbucks Factor” to become even more prominent in the future. As Dodson writes, “cities that seem serious about attracting foreign investment seem to pony-up a Starbucks.”