Zamp Aims To Expand Starbucks To 1,000 Stores In Brazil
Date
9/19/2024 3:27:48 AM
(MENAFN- The Rio Times) Zamp plans to revolutionize Brazil's coffee scene by expanding Starbucks stores, aiming to grow its current Network of 128 cafes eightfold nationwide.
This ambitious strategy signals a new era for the iconic American brand in Latin America's largest economy.
Controlled by Mubadala Capital since February, Zamp envisions this aggressive expansion beginning in about two years.
The company sees this newly acquired business as a medium-term goal for growth. Furthermore, Zamp will focus on major cities and their airports, including Rio de Janeiro and São Paulo.
They anticipate robust demand in these urban centers for Starbucks' popular offerings. The expansion strategy encompasses stores of various sizes to cater to diverse consumer needs.
This move follows Zamp's acquisition of Starbucks' rights from SouthRock Capital for R$120 ($20) million in June.
Notably, Zamp's plans would significantly boost Starbucks' relatively small presence in Brazil. Currently, Brazil's 128 licensed stores lag behind Mexico's 850, Indonesia's 609, and South Korea's 1,937.
However, this expansion aligns with Starbucks' global goal of reaching 55,000 stores worldwide. Despite these ambitious plans, Zamp faces challenges as its stock has fallen over 40% in 2024.
Investor concerns arose partly due to the company's exit from the Novo Mercado segment of São Paulo's stock exchange. This segment has stricter disclosure and governance requirements for listed companies.
Nevertheless, Zamp remains committed to aggressive growth in the fast-food sector. The company recently secured a deal to operate Subway in Brazil as well.
Zamp continues to seek additional fast-food acquisition opportunities in the region to expand its portfolio.
Zamp Aims to Expand Starbucks to 1,000 Stores in Brazil
Their expansion drive is partly fueled by a $200 million investment from Affinity Partners earlier this year.
As Zamp charts this ambitious course for Starbucks in Brazil, the coffee giant itself undergoes significant changes.
The recent appointment of Brian Niccol as Starbucks CEO marks a new chapter for the global brand.
Expectations are high for a strategic overhaul and revitalized growth under Niccol's leadership.
This bold expansion plan promises to transform Brazil's coffee landscape significantly. It also represents a crucial step in Starbucks' global strategy for market dominance.
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