Starbucks Corporation (NASDAQ:SBUX) is rolling out its largest location yet.
The company announced that it recently opened a massive coffee shop in China on Tuesday. Here are eight things you should know about it:
- The Seattle-based coffee maker opened a 30,000-square-foot store in Shanghai today,.
- The store is the first Starbucks Reserve Roastery outside the U.S.
- Starbucks added that this is its largest store in the world, spanning an area roughly twice the size as the next biggest, which is a Roastery in Seattle that opened three years ago.
- Executive Chairman Howard Schultz commented on the store, saying it will combine the company’s 46-year history in the coffee shop industry with “China’s rich, diverse culture.”
- Industry analysts say China is very important for Starbucks, especially following the company’s underwhelming quarterly earnings, which showed disappointing sales growth in a retail environment that is getting more difficult to compete in.
- However, the company’s business in China was an impressive one as it marked Starbucks’ fastest growing market. Sales in the Asian country gained 8% year-over-year.
- The company said it will expand at an aggressive rate in China, opening a new Starbucks store roughly every 15 hours, it said.
- The one challenge for the company is the fact that the country is more interested in tea than coffee, but the novelty element of the company in the country may attract new consumers.
SBUX stock gained 1.4% Tuesday.