© Elliot Brown/Flickr
Starbucks has entered into an agreement with SouthRock – a multi-brand restaurant operator in Brazil – to fully license Starbucks retail operations in the country.
The deal provides SouthRock the rights to develop and operate Starbucks stores in Brazil as it now aims to expand operations to Brasilia and the south of the country.
Since entering Brazil in 2006, Starbucks has opened 113 stores in 17 cities across the states of São Paulo and Rio de Janeiro and has more than 1,450 employees.
With the transition of ownership in Brazil, Starbucks’ retail operations across all its 17 markets in Latin America and the Caribbean will become wholly licensed.
The coffee company currently has a presence in Argentina, Aruba and Curacao, Bahamas, Brazil, Bolivia, Chile, Colombia, Costa Rica, El Salvador, Guatemala, Jamaica, Mexico, Panama, Peru, Puerto Rico, Trinidad and Tobago. It will open in Uruguay later this year.
Ricardo Rico, general manager and vice president for Starbucks licensed store operations in Latin America, said: “We strongly believe this is the right time to leverage a strong local business partner like SouthRock as we pursue our ambitious, long-term growth agenda for Brazil.
“SouthRock has a solid track record of bringing unique retail experiences to customers in Brazil, creating meaningful opportunities for its employees, and investing in the Brazilian economy. They are the ideal partner to take the Starbucks brand into the next phase of profitable growth in Brazil.”
He added: “Much of Starbucks’ success in Latin America and the Caribbean has been due to our knowledge of when to rely on local and regional trusted licensing partners to grow the business.
“For us, the right mix of ownership models – company owned, licensed or joint venture – has allowed us to remain focused on our biggest opportunities as we further accelerate growth across the globe, while always striving for the iconic Starbucks customer and partner experience. We are ready for this next phase of growth in Brazil and are proud to welcome SouthRock to our strong network of licensing partners in Latin America.”
SouthRock was founded in 2015 by Ken Pope, and it now owns and operates Brazil Airport Restaurants, which holds a license agreement for TGI Friday’s.
Said Pope: “Our management team’s track record is one built on growth through operational excellence, and our shared values with Starbucks are particularly evident in our respect for our employees and the communities we serve. SouthRock is committed to caring for and growing the Starbucks brand, now and into the future.”
He added: “With Starbucks, we see continued opportunities for growth in existing markets like São Paulo and Rio de Janeiro, as well as new markets like Brasilia and the south, and look forward to leveraging our local market capabilities to create even greater value for both Starbucks employees and customers.”
© FoodBev Media Ltd 2022
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