Starbucks: expansion in the Middle East and China, layoffs in America

Middle East expansion in the shadow of boycott

Starbucks plans to open about 500 new stores in the Middle East over the next five years, creating 5,000 new jobs, CEO Brian Niccol announced in an interview with Bloomberg. Niccol, who joined the company in September, intends to boost growth with a new strategy.

Starbucks currently has more than 1,300 stores in the region, but sales were significantly reduced last year by a politically motivated consumer boycott. Local customers believed that the company was not putting enough pressure on Israel over the conflict in Gaza, so they turned away from the brand. The boycott’s impact was felt not only in the Middle East but also in the US market, with high prices and long waiting times also hurting sales.

China: thousands of new coffee shops to open

International markets are a key part of Starbucks’ strategy. In China, the company plans to open thousands of new stores, a significant expansion compared to its current network.

Niccol visited China in January to explore Starbucks’ future prospects. The company is also considering potentially selling a stake in the Asian market to increase its funding sources.