Starbucks to file revised application for India entry
June 29th, 2007 - by Andy ScottStarbucks, the American coffee giant will send a revised application for its entry into the Indian market after its earlier proposal for a franchise opertation was put on hold Reuters is reporting.
Starbucks had proposed to enter the fast-expanding Indian market through a franchise 51 percent owned by its Indonesian franchise V.P. Sharma, with the rest held by India’s Future Group CEO Kishore Biyani.
Starbucks is funneling more resources into international markets and the coffee giant plans to increase the number of international stores by 20 percent per year over the next five years.
“The international business is one of our key growth drivers going forward, and one that investors have not fully recognized,” CFO Michael Casey said on Thursday according to Reuters.
Casey said the Seattle-based company still plans to open 2,400 stores this year, including 1,700 in the United States. The number of U.S. store openings will likely not increase in the next few years.
With over 500 stores in the greater China region and 230 stores in 22 cities on the mainland, Starbucks expects that China will become the company’s biggest market outside the U.S. in the coming years.
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