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Myanmar latest addition in Starbucks’ ASEAN rush
The American coffee giant will soon have only Laos left to complete its ASEAN collection
The leaf bests the bean in most of Asia, but that does not seem to affect Starbucks’ active expansion in the region. With the first store in Myanmar set to open in December this year, the American coffee franchise will soon only have Laos missing in its ASEAN collection.
“The first ever outlet in Myanmar will be at the Naing Group Office Tower in front of Sule Square,” Starbucks Myanmar’s Facebook page told The MyanmarTimes.
There are five more outlets in the pipeline after the first one. They will be in Myanmar Plaza, Junction City, Yangon International Airport, near People’s park and Yaw Min Gyi Street, according to Starbucks Myanmar, who is unable to provide details on the timeline and investment.
Distribution of Starbuck stores in Asia Pacific countries, as of October 2, 2016. “Others” include Brunei, Cambodia, India, Singapore, Thailand, Vietnam and others. Graphic – Thompson Chau
The company could not be reached for comment by phone or email at press time.
As early as 2013, the Seattle-headquartered coffee firm set its sight on the Myanmar market as part of its expanded footprint in Asia.
Howard Schultz, Starbucks CEO, said during a visit to Thailand in 2013, that Myanmar was one of the targeted countries for the firm to expand into, the Bangkok Post noted.
“Within the next couple of years, I’d say,” Mr Schultz said of the plan to open its first location in Myanmar back in 2013, according to the Associated Press.
Number of Starbucks stores in ASEAN countries. Currently, the company does not have a presence in Myanmar or Laos, but plans to open its first store in Yangon in December this year. Graphic – Thompson Chau
Starbucks has been actively expanding its presence in Asia and particularly Southeast Asia.
The world’s largest coffeehouse chain launched its first stores in India in 2012 and Vietnam in early 2013. It plans to double its number of shops in Thailand to 320 by 2018.
Similarly, the coffee chain launched its first outlet in Phnom Penh in December 2015, and it has since opened four more stores in Cambodia.
The beverage company’s fiscal annual report in 2016 suggested that, as of January 2017, it has 25,734 retail stores worldwide. It has established operations in all but two of the ASEAN countries – Laos and Myanmar, and its business is also expanding rapidly in neighbouring China and India.
As of October 2, 2016, the coffee chain has 1,110 licensed stores in China, 952 in South Korea, 392 in Taiwan, 293 in the Philippines, 260 in Indonesia, 226 in Malaysia and 399 in the remaining countries in Asia Pacific, totalling 3,632.
Within ASEAN, the Philippines top the number of Starbucks stores, followed by Indonesia and then Malaysia. The total number of stores in the remaining countries is less than 399.
According to its regional websites, the franchise giant has 134 stores in Singapore, 169 in Thailand, 29 in Vietnam, 5 in Cambodia and 4 in Brunei.
With Myanmar joining its portfolio soon, the American coffee giant only has Laos left to complete its ASEAN collection.
Costa Coffee, the world’s second largest coffeehouse chain, does not have a presence in Myanmar. The UK-based coffee firm, a subsidiary of the London-listed Whitbread brewing and hotels group, has a presence in Singapore, Thailand, Cambodia and the Philippines, according to the company’s press release in September 2014. It also sources its coffee beans from Vietnam.
Costa Coffee could not be reached for comment at press time.
None of the international coffee-shop chains, such as Caffè Nero and McCafe, has outlets in the country.
In contrast, the Taiwan-based franchise teahouse chain Chatime entered Myanmar with its store opened in 2013. It currently has 14 outlets in Yangonand two in Mandalay.
Source: http://www.mmtimes.com/index.php/business/27069-myanmar-latest-addition-in-starbucks-asean-rush.html