On October 24th, Starbucks, the world’s largest chain of coffee shop operators, announced that it has acquired the ownership of High Grow n Investment Group (Hong Kong) Co., Ltd., the controlling shareholder of Beijing Meida Coffee Co., Ltd., from private equity fund Horizon Asia Pacific and other shareholders. And announced that through the acquisition of shares, Starbucks has obtained 90% of the shares of Beijing Meida Coffee Co., Ltd., and has recovered the operating rights of the Beijing-Tianjin region. At this point, Starbucks has completely renounced its licensing operations in China.
According to Wang Jinlong, president of Starbucks Greater China, except for the acquisition of 90% of U.S. shares, other minority shares are still held by Beijing Sanyuan. He stated that Starbucks will not withdraw a minority stake in U.S. dollars holding the U.S. dollar for the time being, but it does not rule out future changes. Wang Jinlong also said that both sides are very satisfied with the price of the equity transaction. In addition, he also believes that the acquisition can improve the operational efficiency of the company and accelerate its expansion in the Chinese market.
For this repurchase, Martin Moores, president of Starbucks Coffee International, said that obtaining more equity in the Chinese market is an important part of Starbucks' global strategy. He said Starbucks plans to open 20,000 new stores in the international market, half of which will be settled in the Asia Pacific region, and China will become Starbucks' largest international market.
Martin also said that after the holding of the United States, Starbucks in the Beijing-Tianjin region will be turned into a direct operating model, and Starbucks does not exist in China, authorized operating model, will not develop franchise in the future. According to Martin, Starbucks will leave Starbucks after the Starbucks buyback of Beijing Meida Starbucks, and the new person in charge may come from Seattle, the headquarters of Starbucks. In fact, as early as February this year, Starbucks Global Chairman Howard Schultz said that Starbucks will no longer develop franchise in the future, Starbucks investment in China in the next five years will be all authorized to join the direct-operated. Recently, Weng Yideng, vice president of Starbucks Greater China, once again confirmed this statement. He said that at present Starbucks has no authorized operating model in more than 190 stores in 19 cities in the Mainland. In North China, such as Guangzhou and Shenzhen, in North China, where Beijing and Tianjin are dominant, in Southwestern, mainly in Chongqing and Chengdu, and in other cities, such as Dalian and Shenyang, Starbucks is already a direct operating model, and only East China, which is mainly Shanghai, is located. The region is still a joint venture with the Taiwan United Group. Weng Yideng said that the use of joint ventures or direct operations is based on the specific conditions of the local market, but in most markets such as North America, Starbucks is a wholly-owned direct operation.
Starbucks' Transformation Direct Model Like Starbucks' global expansion, Starbucks started its transnational operations very early and promoted three types of business organizations in the world: joint ventures, licensing agreements, and sole proprietorships. However, Starbucks's strategy is more flexible. It will adopt a corresponding cooperation model based on market conditions in various countries. When Starbucks first entered the Chinese market, taking into account market risks and other conditions, it took the form of joint ventures and franchising to open stores.
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