Markets

Starbucks is opening a store in China every 15 hours

Starbucks is opening a store in China every 15 hours

Roasted coffee spills into a cooling tray in the new Starbucks Roastery in Shanghai, China.

The one bright spot was China, which stood out as Starbucks' fastest growing market. Customers at this attractive outlet settled on the West Nanjing Road shopping strip, now can watch beans being roasted, sample high-end brews and use a Starbucks augmented-reality digital app to interact with the store. Customers can point their smartphones around the roastery for an augmented reality experience.

"As our first worldwide Roastery, we will take even bolder steps to make this Shanghai location our most stunning store", Howard Schultz, executive chairman of the Seattle-based company, said in a company statement.

Starbucks opened a new super-sized Roastery in Shanghai on Tuesday.

"One, you must be focused on experiential retail that creates an experience in your store that becomes a destination for the customer", Johnson explained when asked about what physical retailers must consider in 2017. At twice the size of the flagship roastery in Seattle, it's more a museum dedicated to java versus a stop to grab a morning pick-me-up. And if such a thing exists, the new Shanghai shop is probably it.

The location is 30,000 square feet and serves gourmet, nitrogen-infused drinks and food baked in-house. Shanghai location is Starbucks' biggest store to date, and also its most advanced digitally.

But the Shanghai roastery won't hold the title of largest Starbucks for too long.

It would be all too easy to dismiss China's new Starbucks Roastery as a novel publicity stunt. Starbuck will open another Roastery in Milan, Italy in 2018 and Chicago in 2019. The three wooden coffee bars, including one that is 88 ft. long - the longest at any Starbucks - were handcrafted by premiere Chinese artisans and reference the unique roasting curve of individual coffee beans.

It will also host the Teavana Bar - its first outlet in China specifically offering a range of Chinese teas.

Green coffee is loaded in the new Starbucks Roastery in Shanghai, China. In the third quarter ending October 1, China's comparable store sales grew 8 percent, compared to a 2 percent global growth and 2 percent growth in the US market. Across the street in an office building is a much more basic Starbucks, because there seems to be a Starbucks on every major street corner in town.


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