Expected to generate 1,000 jobsSunday, August 31, 2014
Starbucks to invest US$20M in 2015
The holding company behind the rapid expansion of the Starbucks coffee shop franchise has announced plans to invest a futher US$ 20 million in Argentina in 2015 as part of an expansion plan.
According to the CEO of Alsea, which also holds the rights to Burger King franchises in the country, the investment is expected to have a positive domino effect on the labour market and for the company’s suppliers.
“In 2015 we hope to open about 20 new Starbucks and Burger King storefronts, with an investment about of US$20 million and above else, the creation of about 1,000 jobs,” said Fabián Gosselin.
With the recent inauguration of a Starbucks locale in the Villa Crespo neighbourghood, there are now 74 across Argentina located in seven provinces.
Argentina is home to Alsea’s largest presence in Latin America, as it also operates 76 Burger King franchises and it employs over 6,000 people. Since first opening its first Starbucks coffeeshop in 2006, the country has invested over US$ 80 million and 90 percent of its purchases are made using 250 local suppliers.
In the face of the corporate expansion, traditional coffeeshops in Buenos Aires have been emphasizing their traditions and history in a city that has always valud the “cafecito.”
The Starbucks and Burger King brands are operated by Alsea under license.
Alsea operates 2,200 franchises in Argentina, Mexico, Brazil, Chile and Colombia.
Takeover on the cards
The announcement comes soon after 3G Capital, the company that owns the Burger King business, launched a US$11.5 billion acquitision of the Canadian-based Tim Horton’s coffee and doughnut chain.
The plan is to reduce Burger King’s tax burden by moving its corporate address to Canada, where corporate taxes are lower than in the United States.
Shares in both Burger King and Tim Horton’s have soared in in recent days as a result of the news.
3G Capital is itself a Brazilian private-equity group that operates out of Rio de Janeiro and New York City.
The investment firm also has intrests in the brewery giant Anheuser-Busch Inbev and various logistics and retail operations focused on Latin America.
Herald staff with Télam, Reuters