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Starbucks’ New Brazil Operator Wants to Rapidly Grow to 1,000 Locations

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Starbucks’ position in Brazil is about to grow a lot. The coffee giant’s new owner, Zamp SA, which is backed by Mubadala Capital, wants to open 1,000 shops across the country. This is a big step up from the current 128 sites and shows how much Zamp wants to control the Brazilian market.

Plans for growth and a strategic focus

The bold growth plan that Zamp has been working on should start in about two years, though exact dates are still being worked out. The company’s plan is mostly focused on places with a lot of demand, like airports and big cities like Rio de Janeiro and São Paulo. These areas are known for having a lot of customers, so they will be important for Starbucks to have a strong influence in Brazil.

Zamp is also looking into different store layouts, such as bigger showcase stores in cities and smaller, more efficient ones in places like airports where people are traveling a lot. These plans are in line with Zamp’s larger goal of expanding its fast food and café business in Brazil, where it already has Popeyes and Burger King stores.

Dealing with Problems

The growth is happening at the same time that SouthRock Capital was having a hard time when it was running Starbucks in Brazil. SouthRock filed for bankruptcy earlier this year, saying that high inflation and rising interest rates were making things hard. As a result, almost a third of its Starbucks stores had to close. Zamp bought the Starbucks franchise in June for 120 million reais, which is about 22 million dollars. He then took over the business with the goal of revitalizing it.

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Even though its predecessor had problems, Zamp is sure it will be able to get past operating problems and take advantage of Brazil’s growing desire for high-end coffee experiences.

Mubadala’s Growing Power

Mubadala, a part of Abu Dhabi’s national wealth fund, took over Zamp in February 2024 and has been actively looking for ways to grow in Brazil’s fast-food and café industries. Zamp’s recent deal to run the Subway franchise in the country was its second big move in this area. Now it has bought the running rights for Starbucks.

Affinity Partners, a private equity company started by Jared Kushner, has given $200 million to support Mubadala’s plan to grow. This cash, which is part of a larger plan to boost growth, has set Zamp up to speed up its plans in Brazil.

Starbucks’s Growth Around the World

Starbucks wants to open 55,000 stores around the world, up from the current 40,000 sites. The company wants to strengthen its position in important foreign areas like Brazil, and this expansion is part of that plan. However, Starbucks’ leadership is currently going through big changes. Brian Niccol, who used to be the CEO of Chipotle, was recently named the new CEO of the business. Niccol is expected to bring a new way of running Starbucks and dealing with problems that come up as the company tries to expand around the world.

Zamp’s big plans to open 1,000 Starbucks stores show that the company is sure of the Brazilian market and wants to grow foreign chains in Latin America’s biggest economy. With Mubadala’s money and strategic direction, Zamp is going to change the way coffee is grown and sold in Brazil over the next few years.

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