U.S. coffee giant Starbucks Corp. is aiming to more than triple its revenue and nearly double its store count in China by the end of fiscal 2022.
The company made the announcement during its first China investor conference, adding that it was also looking to more than double its operating income in the country during that period.
Starbucks revealed plans to increase its Chinese store count to 6,000 locations in 230 cities from the current 3,300 stores in 141 cities, which calls for adding 600 net stores annually over the next five years across mainland China.
In addition, the company in June will open a multilevel flagship store in Beijing that offers craft bar experiences for its coffees and teas. This follows the December 2017 opening of a 30,000-square-foot Starbucks Reserve Roastery in Shanghai.
Starbucks also said it intends to leverage its $7.15 billion deal with Nestlé SA to further extend its reach to Chinese consumers. The companies reached an agreement earlier in May that gives the Swiss food giant the right to sell certain Starbucks-branded products through retailers.
President and CEO Kevin Johnson said in a statement: "We continue to mindfully evolve a coffee culture in China where the reward will be healthy, long-term, profitable growth for decades to come. We are committed to long-term investment in China."
The announcement comes shortly after the company posted $6.03 billion in total net revenue for its fiscal second quarter, a 13.9% year-over-year increase. Starbucks attributed the growth to its strength in China and the Asia-Pacific segment, where revenue surged 54.3% to $1.19 billion from $768.9 million.