On January 26, global coffee giant Starbucks reported its Q1 fiscal 2021 results for 13 weeks from September 28, 2020, to December 27, 2020. The global comparable sales declined 5% with a similar slide in the United States, as the COVID-19 continued to hamper business. But in China, its second-largest market after the U.S., the business has largely recovered, with comparable sales up 5%, showing the Chinese market has fully recovered from the pandemic.
The company reported total net revenue in its fiscal first quarter of US$6.7 billion, a decline of 5% from the prior year primarily due to the impact of the COVID-19. The company opened 278 new stores during the last months of 2020, up 4% from the same period last year, with 32,938 stores globally, of which 51% and 49% were company-operated and licensed, respectively.
Stores in the U.S. and China account for 61% of the company’s global portfolio, with 15,340 and 4,863 stores, respectively. The company opened almost 160 stores in China during its first quarter. A few days ago, Starbucks just opened a Starbucks Reserve Coffee · Bar in Chengdu, the third city in China after Shanghai and Shenzhen with the new “coffee + bar” business model. In addition to the regular coffee service, Starbucks Reserve Coffee · Bar also provides a variety of wine, craft beer, and classic cocktails.
The Starbucks Reserve Coffee · Bar is an effort by Starbucks to continually innovate new products and scenarios to meet customers’ ever-changing lifestyles and consumption habits in China. In our previous news, we have also mentioned that Starbucks is eyeing the breakfast market in China with cost-effective prices.
According to the financial report, China and Asia-Pacific are actually much further along on the road to recovery compared to the U.S. and Europe. But the global coffee giant Starbucks is optimistic about its U.S. business, estimating a full recovery by March 2021.