‘Billion-dollar business’ plan: DFI to expand Starbucks footprint in Thailand, Vietnam
DFI will also take over the coffee chain’s operations in Singapore, Hong Kong, Cambodia, Macau and Laos
DFI Retail Group plans to expand Starbucks' presence in Thailand and Vietnam as it aims to turn the newly acquired license into a "billion-dollar business" within three years. The retail company intends to open 250 more stores, primarily in these high-growth coffee markets. DFI will assume all existing interests in the Starbucks-licensed business, comprising over 1,100 coffee houses in the five countries.
The capital expenditure for new stores is estimated at US$90 million to US$100 million over the next three years. Investors reacted positively to the move, with the share price gaining up to 7.5% in early trade on Thursday. DFI aims to increase average customer spend by introducing new beverage options and premium all-day snacking.
The expansion will help reduce operating expenses by integrating Starbucks into its regional retail infrastructure, making it the second-most profitable business for DFI.
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