Starbucks' New China Store Is the Size of a Supermarket

Starbucks' New China Store Is the Size of a Supermarket

The cavernous 30,000 square-foot location is the first Starbucks Reserve Roastery-a so-called experience center-outside the brand's hometown of Seattle.

Patrons at the huge new coffeehouse located on the well-known shopping strip West Nanjing Road can watch coffee beans being roasted, use an augmented reality app from Starbucks to interact inside the store and sample high-end coffees. The company already has over 600 stores in Shanghai - the largest number of stores in any city where Starbucks has a presence.

In China, Starbucks' young baristas and shift supervisors receive a housing allowance subsidy, Wong said. Princi is the exclusive food offering in all Starbucks Roastery locations, including Seattle, Shanghai and upcoming locations.

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But Starbucks, which entered China 18 years ago, still sees remarkably strong growth in China, where many consumers view it as an aspirational brand.

Take a look at the photos showing the state-of-the-art roastery, Starbucks will be boasting about for a long time.

"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.

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Starbucks plans to open other Roastery cafes in New York, Tokyo, Milan and Chicago. Tea products are a struggling subsidiary that Starbucks is eager to revive. Three wooden coffee bars stretching up to 27 meters (88 feet) long and handcrafted by Chinese artisans will serve as the stage for hundreds of baristas and six brewing methods: ModBar Pour Over, Chemex, Coffee Press, Siphon, Espresso and the proprietary Clover-brewed coffee. 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 USA market.

Schultz said on Tuesday at a briefing in Shanghai that it was obvious to the company that the holding power for Starbucks in China will be more significant than the USA holding power.

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