Starbucks Reserve Roastery opens in Shanghai

Randolph Lopez
December 6, 2017

Starbucks is opening a new 30,000-square foot, high-end Reserve Roastery in China. Starbuck will open another Roastery in Milan, Italy in 2018 and Chicago in 2019.

Starbucks has showcased its first overseas roastery and its world's largest store in Shanghai, as it expressed strong confidence in the growing Chinese market.

The firm held a 54.8 percent share of China's 25.2 billion yuan ($3.81 billion) specialist coffee shop market past year, far ahead of rivals like McDonald's Corp's McCafe and Whitbread Plc's Costa Coffee, Euromonitor data show.

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One of its three coffee bars is 88-feet long, the longest Starbucks bar in the world - because waiting in line is so 2016.

This new Shanghai store is almost 30,000 square feet, has over 100 beverages on the menu, and allows customers to participate in the first AR (augmented reality) experience from Starbucks.

Green coffee is loaded in the new Starbucks Roastery in Shanghai, China.

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DIGITAL: The Shanghai Roastery is the first Starbucks location to seamlessly integrate a real-time, in-store and online customer experience.

And Starbucks is playing to that image with this new shop in Shanghai. Starting with the two-story copper cask, adored with more than 1,000 traditional Chinese stamps, hand-engraved to narrate the chain's 46-year history.

"China is our second-largest and fastest-growing market". Starbucks owns 3,000 stores across 136 cities, with 600 stores only in Shanghai. It's the first Starbucks Reserve Roastery - the company's new retail offering - outside the U.S.

Starbucks increased its China investment during July, when plans were announced to buy out its joint venture partners.

Princi baked items are shown in the new Starbucks Roastery in Shanghai, China. Last quarter, China posted an 8 percent increase, compared with a 3 percent gain in the US, excluding impacts from Hurricanes Harvey and Irma.

Shares of Starbucks have risen 5.8 percent this year.

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