Since arriving three years ago, Starbucks has been opening new locations in Argentina at a rate of 12 per year. In fact, the company just opened the 36th location in Rosario reflecting the strategic shift of global brands to the country’s interior. Now, a new business plan should easily double the number of locations Starbucks opens in Argentina per year.
Alsea, the Mexico-based franchiser of Burger King, Domino’s Pizza and P.F. Chang’s, has extended its Starbucks rights through 2027 and plans to open 300 new Starbucks in Argentina and Mexico over the next five years. Considering Argentina has roughly 40% the population of Mexico, that coud mean 120 new Argentina Starbucks between now and 2015 or 25 per year.
To sweeten the deal, Seattle gave the Mexicans a pretty lucrative incentive to follow through on such an ambitious growth plan. Starbucks currently holds an 18% stake in the Argentina and Mexico subsidiaries with an option to increase its share to 50%. If Alsea delivers on its promise to open 300 new outlets by 2016, Starbucks will renounce this option, according to Mexico’s Informador. (Full Story in Spanish)
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