Starbucks is accelerating its global expansion beyond fiscal 2028, with China positioned as a cornerstone of its long-term growth strategy despite intensifying competition and economic headwinds.
Speaking at its 2026 Investor Day, the coffee giant said it sees a significant growth runway across both domestic and international markets.
Internationally, Starbucks plans to double its coffeehouse footprint over time, targeting close to 40,000 stores outside the US. China is expected to account for a substantial portion of that expansion, with the company aiming to add between 15,000 and 20,000 stores in the market over the long term.
“The role of our international business is very clear,” said Brady Brewer, CEO at Starbucks International. “We are an asset-light growth driver for Starbucks that increases Starbucks’ margins.”
China remains a strategic priority but also one of Starbucks’ most challenging markets, as local rivals such as Luckin Coffee and Cotti Coffee gain ground through aggressive pricing, rapid expansion and localised innovation. At the same time, a slowing economy heightens price sensitivity and puts pressure on its premium positioning.
In response, Starbucks has restructured its China operations via a joint venture with Boyu Capital, shifting the business to a licensed model while retaining a 40 per cent stake. For the first quarter of fiscal 2026, Starbucks reported revenue of US$9.9 billion, pointing to improving sales momentum and continued growth across its global store network.
