Starbucks has revealed plans to expand in the Middle East, with the addition of 500 new stores in the region over the next five years.
The expansion will add 5000 jobs in the region, CEO Brian Niccol told Bloomberg Television.
Starbucks currently has more than 1300 stores in the region where it operates through a licensing agreement with Kuwaiti family conglomerate Alshaya Group.
The expansion plans come as the coffee chain faced boycotts in the Middle East, which had a significant impact on traffic and sales and also weighed on its US business, according to Starbucks.
Besides the Middle East, Niccol said Starbucks will add a few more thousand stores in China in the future despite struggling amid the country’s uneven economic recovery and increasing competition from lower-priced competitors.
The company is reviewing options for the business that could include selling a stake, Bloomberg News reported. Niccol visited China in January 2025 for the first time since taking over.
Since taking over in September 2024, Niccol initially focused on crafting a plan for the North America business, which accounts for about 75 per cent of revenue. He has said he would restructure the corporate ranks to reduce complexity, eliminate layers of management and clarify who’s responsible for achieving goals. Now he’s turning to international markets.
