Starbucks Signed to Come to South Africa in 2016
Seattle Coffee enters Sub-Saharan Africa
Taste Holdings, which recently licenced global pizza brand, Domino’s Pizza in the South Africa, has signed an exclusive deal with Starbucks Coffee.
The company says the first store will open in Johannesburg in mid-2016.
“For the first time in sub-Saharan Africa, Starbucks will open full-format stores bringing the entire range of its food and beverages, including its ethically-sourced Arabica coffee, to South African consumers,” Taste said in a trading statement on Tuesday (14 July).
Most are familiar with the brand name through TV, movies and media. The franchise’s green and white siren logo could be a familiar draw for people visiting Johannesburg from other parts of the world.
Kris Engskov, who heads Europe, the Middle East and Africa for Starbucks, said “South Africa is an “aspirational country” with a growing economy and that there is now a “much larger group of people that can access our brand”.
Starbucks has 22 000 locations globally.
Starbucks and Taste aren’t disclosing the financial terms of their deal, but Starbucks says it will be similar to its other licensing deals around the world. The companies say their partnership will eventually lead to additional Starbucks stores in South Africa.
Employees from Taste will be trained at the Starbucks headquarters in Seattle, and stores will be designed by the Starbucks team in London.
As with other Starbucks outside the US, the menu will be tweaked to cater for local tastes. For example, rooibos tea will be part of the menu.
Taste CEO Carlo Gonzaga said, “Starbucks will do well in South Africa because there’s an affinity for international brands because their presence in the country has been relatively scant.”
Starbucks is the latest US brand to be coming to South Africa, following the announcement that a local group, KK Doughnuts SA, would be bringing Krispy Kream doughnuts into the country.
Source: businesstech.co.za and fin24.com