Starbucks Philippines targets 40-45 new stores annually as sales recover

MANILA, Philippines — Starbucks Philippines announced Tuesday it would open more stores in the country as part of its “deliberate” plan to heighten its local presence, as its business recovers from a pandemic-led slump.

The nationwide expansion means opening an average of 40-45 new Starbucks stores annually, Noey Lopez, company president and chief executive, told reporters. Starbucks Philippines is owned and operated by Rustan Coffee Corp. 

While Starbucks has not revealed where those stores will be located, Lopez said that the coffee giant would be “deliberate” in its expansion.

He revealed that a “sizeable” number of those fresh stores, possibly half of the yearly target, would be drive-thru branches, which rose to greater prominence during the pandemic lockdown when contagion fears prompted consumers to avoid dining in.

“Quite a sizeable percentage of stores that we’re opening because those are the ones that resonate with customers,” Lopez said.

The expansion plan comes at a time pandemic-hit companies that survived harsh lockdowns have started to recover amid a reopened domestic economy, cashing in on the so-called “revenge spending”.

Without disclosing any figures, Lopez said Starbucks Philippines observed a double-digit revenue growth this year, even exceeding its 2019 performance. Recovery was not easy, he added, as 2020 proved “really slow” for Starbucks’ sales. 

Even then, Lopez maintained that Starbucks kept its status as a market force within the country.

“I can speak to 2022, we’re way past 2019 numbers. Very strong in terms of sales,” he said.

“I can say we’re the market leader in terms of the number of stores and probably estimated revenue if you compare us with any other brand,” he added.