Starbucks Coffee Breaks Franchise in China
Starbucks Beijing centralized somewhat suspended
Is it the change of dynasty or the return of ancestors? When Starbucks' global president started calling franchising in China, it became a difficult choice for Beijing's Meida Starbucks. Yesterday, the U.S. Starbucks said that the equity issue is being further discussed. However, the person concerned refused to comment on the fate of Beijing Starbucks once the negotiations failed.
The day before yesterday, when Starbucks Global Chairman Howard Schulz visited China, he disclosed to the media that Starbucks will change its previous business model in China and will no longer develop franchising. It also plans to make China the largest overseas market for Starbucks, with the number of stores increasing from the current 100 to more than 500, more than Canada and Japan.
The industry believes that the trigger for Howard to generate such a thought should be the umbrella of the U.S. Starbucks. Because Starbucks is currently among the three cooperative companies in China, Shanghai United Starbucks and Guangdong Max Starbucks have successfully transferred at least 50% of their shares to US headquarters, and only Beijing Meida Starbucks holds 100% stake. Starbucks headquarters can only Collecting the brand's initial fee and not getting a piecemeal operating profit made Starbucks headquarters jealous.
As franchising last year opened up to foreign investment, Starbucks headquarters can finally get a pass to open a chain of stores, and franchise stores that used to be "springboards" no longer have value. So where does Beijing Big Star Starbucks go from here?
In response, Li Fuqiang, the vice president of Midea Starbucks, was very fierce yesterday. He told reporters that they are only responsible for the operation of Starbucks and have no knowledge of the equity issue. When the reporter asked who could answer this question, Li Fuqiang said: "You should ask anyone who says this thing. No one in the US Starbucks can answer this question!"
Compared with Li Fuqiang’s answer, Wang Chaolong, acting president of Beijing Meida Starbucks, was more like a diplomatic remark. He said that Starbucks has already reached an agreement with Shanghai’s unification, and the headquarters will recover 50% of the shares of Shanghai’s unified Starbucks. Starbucks’ equity issue is also being discussed further. However, Wang Chaolong refused to comment on the future fate of Beijing Starbucks.
US-Starbucks controls 58 Starbucks stores in Beijing and Tianjin, 48 of which are in Beijing, occupying half of Starbucks in China.
Zhong Liang, Secretary General of the China Chain Store Management Association, stated that after the "Administrative Measures for Commercial Franchise Management" was promulgated last year, the domestic franchise policy has become clear, and foreign retailers can enter franchising in China. For chains such as McDonald's and KFC, the openness of chain operations is undoubtedly a good news, but McDonald's insiders told reporters that multinationals like McDonald's are complex in managing the chain and should not have Starbucks, so at present there is no I have heard of plans.