The trip to Shanghai and Beijing was Narasimhan’s first visit outside of North America since he became chief executive officer of Starbucks on March 20.

core/paragraph

Laxman Narasimhan (纳思瀚), chief executive officer of Starbucks, has lived all around the world, held key leadership roles at a number of major companies and speaks six languages. But on his recent trip to China, Starbucks second largest market after the United States, he was there to learn.

“I have so much to learn from all of you,” he told the hundreds of Starbucks partners gathered during an open forum. “... Thank you for welcoming me into your house.”

During his first trip outside of North America since becoming ceo, he visited a number of stores across a variety of formats in Beijing and Shanghai, the Starbucks <a href="https://stories.starbucks.com/asia/stories/2020/starbucks-unveils-bold-vision-for-china-coffee-innovation-park/" target="_blank" rel="noreferrer noopener">China Coffee Innovation Park</a>, slated to open later this year, and more.&nbsp;Each store and location offered a window into the unique Starbucks Experience of partners and customers in China. The visit comes less than a month after Howard Schultz, Starbucks founder and chairman emeritus, <a href="https://stories.starbucks.com/stories/2023/photo-essay-starbucks-china-partners-visit-with-howard-schultz-chairman-emeritus/">visited partners in Beijing</a>, where he opened the first Starbucks in China in 1999. Schultz’s bold vision for the China business is legendary, as is his enduring love for partners in Starbucks second largest global market. It's a passion now shared by Narasimhan.

“I come with a great deal of respect,” Narasimhan told partners. “... And it’s amazing to see what you have done with coffee culture – the love you have for coffee and how we try and radiate that love to all the people around is amazing.&nbsp;(During my visit), I got to see the partners, the passion, the love for the company, the love for what you do.”

Over nearly 25 years, Starbucks has grown from one store in China to more than 6,200 across over 240 cities today and, on average, opens a new store about every nine hours, a feat Narasimhan attributes to Belinda Wong, chairwoman and chief executive officer of Starbucks China, and the strong all-Chinese leadership team. Wong, who has been with Starbucks for more than 20 of those years, is known not just for her business savvy – she regularly appears on lists of the most powerful businesswomen by Forbes and in Fortune – but also her passion for partners and communities.

Since January, before taking the helm as ceo, Narasimhan has been meeting virtually with Wong and members of the China Leadership Team each week so he could better understand the business.

“To Belinda and the China leadership team, I thank you,” he said, acknowledging their critical role that has made Starbucks a premiere brand in China through creating remarkable store experiences for customers, nurturing strong relationships with stakeholders and contributing to the specialty coffee industry. At the foundation of the company’s success is the leadership team’s commitment to caring for the 60,000 partners in China, with unprecedented investments such as critical illness insurance that covers not just Starbucks partners in China, but also their parents.

“I know what you and our China partners have been through over the last three years,” he told Wong and the leadership team. “… Thank you for keeping the faith. Thank you for remaining courageous. And thank you for continuing to build Starbucks China during that very difficult period. I deeply and personally thank all of you.”

Narasimhan stressed the company’s long-term commitment to China. “We have been here for 24 years. We want to be here for the next 25 and the next hundred beyond that. … I want you to know that that this is a long-term vision for us,” he said. “We have limitless possibilities in China – limitless.”

Limitless human connection

core/heading

core/image

core/gallery

One of Starbucks priorities is to become truly global, Narasimhan said. Another is to drive innovation, which is something that China is at the forefront of doing – not only with the products that are sold but in building bridges that connect people, whether that’s at a popup store in Beijing (top photo) or creating an environment that inspires, such as the Starbucks heritage culture gallery store in Beijing where a regular customer often sketches and paints (bottom photo). “We’re in the business of human connections and the opportunities are truly limitless,” he said.

Sometimes the connections are not only limited to humans. Narasimhan also visited one of the pet-friendly stores in China (second row, far right), pioneered by Wong, which feature special menu items and seating areas where owners and their pets can be together.

Gathering together, honoring the past and future

Starbucks now has more than 6,200 stores in more than 240 cities across the Chinese mainland – but it all started with the first store in Beijing that opened nearly 25 years ago, a place Narasimhan visited during his trip (second row, left). “This is the place where Starbucks started and from where Starbucks has grown.”

He also visited the Xitieying Wanda signing store in Beijing, where partners led a coffee tasting with Narasimhan, which was conducted in sign language. They taught him to make a heart shape with his thumb and index fingers. The store is one of a dozen in China so far and embodies Starbucks promise that, when it’s at its best, the company is building bridges to a better future for partners who proudly wear the green apron.

“You mean a lot to Starbucks. You mean a lot to me,” he told partners at one of the open forums (top photo).

In each of the stores he visited, he made a point to greet every partner. Narsimhan is a fully trained barista himself who works in stores a half-day each month to stay close to the realities of working in a retail store. One of those he met was Ricky Gu, store manager at the Shanghai Jiayuting store.

“It’s great that we finally get to meet him in person,” said Gu. “After listening to his story, I can feel his identification with Starbucks culture and values. He is a great listener who remembers all our names and stories. Having such a leader gives me a lot of confidence in Starbucks future.”

After each event, partners flocked to the China Partner App to share their stories of meeting the new ceo:

“Laxman came and gave fist bumps to all our partners in the store. Every day at Starbucks is so warm and happy!” — Shawn Xiao, barista in Beijing Fun store

“I was proud to host Laxman at our first store in China. Laxman gave us a lot of love, warmth and confidence. We are more motivated than ever to work shoulder to shoulder to achieve a brighter future.” — Kelvin Zhang, shift supervisor, Beijing China World Mall 4 store

“Laxman was very warm and approachable. We took photos together, shouting out ‘we are family!’” — Jennie Zhu, store manager, Shanghai Bingo Plaza store

“Laxman highlighted the importance of focusing on store partners. He gave us a sense of warmth and belonging. The future is full of limitless opportunities because we have each other.” — Joy Gou, Shift Supervisor, Walmart North Linyi Road store, Shanghai

During Partner Open Forums held in Beijing and Shanghai, Narasimhan spoke to partners, sharing his vision and hopes for the future, enjoyed coffee tastings led by partners and answered questions from them including how many cups of coffee he drinks a day (seven, he said, “but then I didn’t sleep so now I’m at four”) and what his favorite coffee beverage is (Doppio macchiato, which reminds him of the coffee he grew up with in South India).

When a partner asked him if he has a motto that has guided him during his life, he said he does. “My motto is ‘Be yourself.’ Because when you be yourself, and you operate in an environment, where you create the license for people to look up and speak and be themselves, magic happens. So thank you for letting me be me. And thank you for being you. And together, we can make magic.”

“We feel so much closer to Laks after his China visit,” said Raymond Zhang, Shanghai Support Center partner. “We hope it has given him a vivid, firsthand experience of the rapid changes and development in China over the years. And we hope he will visit his Starbucks China family more often in the future.”

“We are at our best when we give more than we take from the environment,” said Narasimhan. During his visit, he stopped by several Greener Stores, including the first Greener Store in China, located in Shanghai. The Greener Stores in China are among the 3,500 around the world designed to meet specific standards across environmental impact areas.

At one store, partners presented him with an apron they’d designed for him to commemorate his visit, which included a drawing of him.

Listening and learning at the Starbucks Support Center in Shanghai

At the Starbucks Support Center in Shanghai, Narasimhan met with partners to ask questions, listen, learn and immerse more deeply into the China business. He visited each team, from coffee and marketing to R&amp;D to store development, technology, finance, human resources and more to see how cross functional collaboration comes to life in China.

He said that one of the most important things he’s learned in life is that “you have to be humble. You've got to be humble about the fact that you don't know everything. You have to be able to ask questions, you’ve got to be yourself. But the real thing here is you've just got to continuously learn.”

Meeting customers where they are at

Starbucks commitment to connection isn’t limited to inside the stores. In China, Starbucks offers an innovative new curbside pickup service (top photo) delivery (second row, left), and a range of packaged coffee and ready-to-drink beverages at grocery stores (second row, right) to meet customers wherever they are at.&nbsp;

Even just a moment is an opportunity, Narasimhan said. “You see it in their eyes, when you hand the cup off to them, you know, we are in the business of human connection. So, when you hand that cup over, and you say their name ... what you realize is you've made a connection, you have made a change, you have uplifted their every day.”

Narasimhan also visited the China Coffee Innovation Park, which will open this fall in in Kunshan, about an hour from Shanghai. Starbucks has invested more than $150 million to construct the innovation park, Starbucks largest manufacturing investment outside of the U.S. and its first in Asia. It will feature one of the first sustainable roasting plants in Starbucks global network, smart supply chain operations enabled by state-of-the-art technologies, and an immersive Experience Center that will showcase sustainable practices across the “Bean to Cup” coffee journey to all visitors.

Leaning into the joy of human connection

“We need to have some fun, because this is a fun business,” said Narasimhan, shown with Wong, during a visit to a Starbucks Reserve® store in Shanghai (top photo). “... We believe in joy, we believe in belonging, we believe in care.”

Narasimhan told partners that sharing ourselves and our stories connects us as people. “It's your stories that enliven the fabric that make up this company -- that enlivens the green apron that all of us wear. At the end of the day, with every cup, with every conversation, with every community, what you can do is you can nurture the limitless possibilities of human connection.”

The trip to Shanghai and Beijing was Narasimhan’s first visit outside of North America since he became chief executive officer of Starbucks on March 20.

Starbucks ceo Laxman Narasimhan visits partners in China

https://stories.starbucks.com/uploads/2023/05/SBX20230601-Laxman_China_FeatureHorizontal.jpg

Stories to inspire and nurture the human spirit

Starbucks Stories

https://stories.starbucks.com/uploads/2019/01/Photo_TBD-320x411_1-1.jpg

Starbucks Corporation

https://stories.starbucks.com/stories/2023/starbucks-ceo-laxman-narasimhan-visits-partners-in-china/

twitter:card

twitter:description

https://stories.starbucks.com/uploads/2023/05/SBX20230601-Laxman_China_FeatureHorizontal-1024x498.jpg

twitter:image

twitter:title

On the heels of Starbucks&nbsp;6,000 store opening&nbsp;in China, Howard Schultz, Starbucks founder and chairman emeritus, fulfilled a promise to visit and celebrate the partners of Starbucks fastest growing region.

Howard Schultz stood before the ballroom full of Starbucks partners (employees) in Beijing with one ask: Open your hearts to each other.

“Being authentic and being vulnerable is a strength, not a weakness. Being open and honest and sincere is a strength,” Schultz said at the Partner Open Forum, attended by 1,000 partners in person and another 15,000 who joined virtually. “Starbucks is at its best when we are embracing our humanity. And this whole room right now is based on that, our common humanity.”

The Starbucks founder and current board member was in China this week on the heels of Starbucks <a href="https://stories.starbucks.com/asia/stories/2022/starbucks-opens-6000th-store-in-china/">6,000th store opening</a> in China to fulfill a promise to visit and celebrate the partners of Starbucks fastest growing region.

Starbucks opened its first store in China in 1999 and has a rich history in the market based on cultural connection. In addition to the Partner Open Forum, this week Schultz visited stores to meet partners, to see the ways they are connecting with customers with the newly launched <a href="https://stories.starbucks.com/asia/stories/2023/starbucks-china-curbside/">curbside service</a>, and to hold a fireside chat with students at <a href="https://english.pku.edu.cn/">Peking University</a>.

“There is a unique, loyal connection between Starbucks and the Chinese people. As I meet with partners and the China community, I am reminded how coffee is an international language, and it’s truly been the driving force for how we connect with our customers in the region,” said Schultz. “I am extremely proud of our team in China and our 60,000 Starbucks partners who exemplify the responsibility of wearing the green apron. We particularly saw their dedication during the three years of the pandemic, and they continue to show up for one another while delivering a world-class customer experience every day.”

During the Partner Open Forum on Monday, Schultz talked about the love and responsibility he feels for all Starbucks partners and his appreciation for Belinda Wong, Starbucks China’s chief executive officer and her team.

As the company expands its footprint across the region, partners continue to be at the core of the Starbucks Experience in China. Since the beginning, Starbucks China’s mission has always been to take care of partners and their families, and help them realize their goals and career aspirations, he said.

During the pandemic, as China and other parts of the world experienced prolonged periods of shutting down, Wong and other leaders focused on prioritizing the health and welfare of partners and their families.

“It’s very easy to be a leader when you have the wind at your back. But a true leader – and in this case, the leadership team of China, shows up with their heart and their conscience and their commitment when the wind is in their face, when the challenges are so great,” he said. “And I’m so proud of the team and how we all showed up for each other at a time that was so excruciating.”

Schultz credited the partners for bringing customers back when Starbucks stores reopened. “I knew in my heart that Starbucks would come roaring back in China because of the people in this room, the 60,000 partners that you are representing, who wear the green apron,” he said. “And for that, I, with love in my heart, thank you so very much. Because I knew that when the pandemic ended, Starbucks would return to not only a healthier place, but a stronger place. And if anyone ever doubted that, they should be in this room right now and witnessing the extraordinary love that is in this room that you can't invent.”

During the open forum, partners shared their personal stories. One partner, who joined the company last August, shared that Starbucks is a place where they feel like they truly belong. &nbsp;

“We know in the world, there is much resistance, but in Starbucks, whether its your ethnicity, gender or educational background, you join a team, enjoy your time, enjoy your work in Starbucks,” the partner said. &nbsp;

Schultz stressed the importance of partners bringing their true selves to work and to support others in doing the same. “You understand that Starbucks Coffee Company’s best days are not because we're chasing money, but our best days are because we are lifting each other up,” he said.

Investing in education is deeply rooted in Starbucks mission globally. This week, Schultz led a fireside chat with 300 students at Peking University, one of the top public universities in China, to discuss the history of Starbucks China and the importance of putting people over profit. Students also had a chance to taste coffee made with different brewing methods by Starbucks partners.

“I’ve talked to Starbucks partners and customers from all over the world and at the end of the day, it’s clear to me that we are more similar than we are different,” he told the students. “We all have the same dreams: to make our families proud, have joy in our lives and to make an impact in the world. Coffee brings people together. It's a sense of community, it’s a human connection, it’s humanity. To be in the people business, you have to know your people and connect them to a core purpose and a reason for being that they can see themselves in.”

At both Starbucks Kerry Center location, the company’s first flagship store in Beijing in 2013, and Heritage Culture store, Schultz had the opportunity to meet a number of partners, and thank them for their resiliency and commitment to each other and their communities. Schultz learned about the many ways partners lifted each other up through small and big acts.

One partner, who has been with Starbucks eight years, shared a story about how one day, early in her career at Starbucks, her manager pulled her aside and she was nervous until she realized that her manager knew it was her birthday and wanted to acknowledge and celebrate it.

“It's just a little thing,” said Schultz, “but it's just acknowledging and recognizing someone for who they are.”

Since Starbucks opened its first store in the Chinese mainland in 1999, the company has focused on not only providing great food and beverages to consumers, but has also has been at the forefront of retail innovation and sustainability in China.

Starbucks has a goal of operating 2,500 <a href="https://stories.starbucks.com/stories/2023/whats-inside-a-greener-store/">Greener Stores</a> in the Chinese mainland by 2025. In support of Starbucks 2030 goals of reducing carbon, water and waste footprints by 50 percent, the open-source Greener Stores Framework was co-developed with the World Wildlife Fund (WWF). The framework includes a set of 25 performance-based standards across environmental impact areas such as energy efficiency, water stewardship, and waste diversion, designed to accelerate the transformation of retail towards lower-impact stores.

<a href="https://stories.starbucks.com/starbucks-oleato-olive-oil-meets-coffee/">Starbucks Oleato,</a> an innovative alchemy of the finest arabica coffee infused with Partanna extra virgin olive oil, has rolled out across more than 60 stores in Asia. As the company continues to expand its availability, partners in China had a unique opportunity to taste the company’s latest beverage innovation this week.

While we’re excited to introduce the transformational innovation, Oleato beverages are not yet available in Chinese stores.

On the heels of Starbucks 6,000 store opening in China, Howard Schultz, Starbucks founder and chairman emeritus, fulfilled a promise to visit and celebrate the partners of Starbucks fastest growing region.

Photo essay: Starbucks China partners visit with Howard Schultz, chairman emeritus

https://stories.starbucks.com/uploads/2023/04/SBX20230426-HS-China-Photo-Essay-FeatureHorizontal.jpg

https://stories.starbucks.com/stories/2023/photo-essay-starbucks-china-partners-visit-with-howard-schultz-chairman-emeritus/

https://stories.starbucks.com/uploads/2023/04/SBX20230426-HS-China-Photo-Essay-FeatureHorizontal-1024x498.jpg

Store marks Starbucks 1,000th in Shanghai, the first city in the world to reach the milestone Greener Store features leading sustainability solutions and digitalized operations Pays tribute to Shanghai by innovating Starbucks first city themed handcrafted coffee creation in China

September 27, Shanghai - Starbucks today celebrated its 6,000th store in the Chinese mainland, which opens on September 30 at Shanghai Lippo Plaza, where the company opened its first store in Shanghai more than 20 years ago. The new store marks Starbucks 1,000th in Shanghai – making it the first city in the world to pass the milestone. The latest addition to Starbucks growing portfolio of “Greener Stores” also features leading sustainability solutions and digitalized operations. To commemorate the milestone, Starbucks is launching “Shanghai Coffee” in Crema Ristretto style – its first city-themed handcrafted coffee creation in China as a tribute to the city and its coffee lovers.

“As Starbucks celebrates our 6,000th store in China, we are deeply humbled to return where we opened our first store in Shanghai,” said Leo Tsoi, chief executive officer, Starbucks China. “It has been a privilege to share our love for coffee with local customers, and contribute to the development of China’s coffee culture and its specialty coffee industry over the past two decades. We treasure the strong connections we have built, and will never stop innovating new coffee products and experiences to delight our customers and earn their support every day.”

Since entering the Chinese mainland market, Starbucks has become known as a place for connection, familiarity and joy, interwoven into Chinese consumers’ daily lifestyles from social gatherings with friends and family, to casual business meetings and more. It continues to innovate and scale creative store concepts to serve customers and communities, such as Signing Stores that provide employment opportunities for Deaf and hard of hearing partners (employees), Heritage Culture Gallery Stores that bring heritage culture closer to Chinese consumers, and a co-working space concept store providing flexible, on-demand co-working spaces for mobile professionals.

The new Shanghai Lippo Plaza Store bears testament to the continuous evolution of Starbucks stores in China’s dynamic consumer landscape. It features a clean and streamlined design, brought to life with minimalist style furniture and casework made using recycled straw material. Old green aprons donned by Starbucks partners were upcycled to create the store’s signature artwork – an iconic Starbucks siren with intricate design details that relay important milestones in Starbucks journey in China. From the store’s mall entrance, customers are greeted by a mug wall made up of a vast collection of Starbucks signature city mugs launched over the years.

Beyond its contemporary design, the evolution of Starbucks stores is also reflected in the Shanghai Lippo Plaza Store’s back-of-house operations, where investments in digital technologies have enhanced the partner experience and elevated store efficiency to a whole new level. The use of Internet of Things (IoT) sensors and automation tools have dramatically simplified routine stocktaking tasks, enabling partners to focus on coffee craft and customer connection. Big data and machine learning algorithms have also been deployed to optimize inventory ordering and labor scheduling. These technologies have been scaled to all stores in operation market-wide, as the company continues to advance its digital transformation agenda.

The Shanghai Lippo Plaza Store is also the latest of Starbucks growing portfolio of Greener Stores in China. From design to construction and operations, it incorporates sustainability solutions to achieve reductions in carbon, water and waste. Among its features, the store uses smart, energy efficient solutions for air conditioning, lighting, water usage and daily energy consumption. Green aprons donned by store partners are made from recycled Starbucks cups using advanced plastic-to-textile technologies. Customers are invited to join Starbucks on its journey towards reusables by bringing their own cups or choosing a Grande-sized reusable cup when ordering beverages for on-the-go consumption.

Alongside the planned opening of the Shanghai Lippo Plaza Store, Starbucks has also specially created a signature handcrafted coffee beverage for coffee lovers in Shanghai – Shanghai Coffee in Crema Ristretto style. As the official coffee industry partner for Shanghai’s city image promotion, and in partnership with IP SHANGHAI, Starbucks is launching the beverage on September 28 across all Starbucks stores in the city.&nbsp;

Shanghai Coffee in Crema Ristretto style is inspired by nostalgic Shanghainese childhood flavors given a distinctive Starbucks spin. It is a delicious creation made with malt, cream and smoky Starbucks ristretto espresso, infused with butter scotch flavored syrup offering layers of flavors and aromas. The first sip offers the comforting taste of Shanghai’s very own beloved malt powder, followed by the smooth taste of cold foam infused with the sweet, delicate flavor of butterscotch - a western-style candy loved by Shanghainese. Finally, coffee lovers may immerse in the bright acidity and caramelly depth of the ristretto espresso, to enjoy the artful intertwining of robust coffee flavors with a light and sweet milky aroma.

As Starbucks celebrates its latest milestone, the company is still in the early chapters of its China growth story. In this next era of accelerated growth at Starbucks, the company expects to operate 9,000 stores across 300 cities in China by 2025, opening one new store nearly every nine hours in China for the next three years. It will also accelerate the rollout of Starbucks Greener Stores framework in China with a plan to operate 2,500 Greener Stores by FY2025.

The new store marks Starbucks 1,000th in Shanghai – making it the first city in the world to pass the milestone.

Starbucks Opens its 6,000th Store in China

https://stories.starbucks.com/uploads/2022/09/SBX2022926-China-6000th-store-opening-feature-image.jpg

https://stories.starbucks.com/press/2022/starbucks-opens-its-6000th-store-in-china/

https://stories.starbucks.com/uploads/2022/09/SBX2022926-China-6000th-store-opening-feature-image-1024x498.jpg

Indoor dining services resume across 800 Starbucks stores in the city as COVID restrictions ease

SHANGHAI – The dine-in experience resumed at most Starbucks locations across Shanghai today, the first day indoor dining partially eased across the city. The return of Starbucks third place experience at 800 Starbucks stores in Shanghai marked another milestone in the company’s COVID journey, and the gradual return to normalcy in one of the most vibrant and dynamic cities in the world. To celebrate the milestone and welcome customers back, coffee tastings – Starbucks signature coffee ritual – were held in all 800 stores.

“Customers’ craving for Starbucks and longing for human reconnection have never been felt more keenly as we emerge from the most severe COVID resurgences in China,” said Starbucks China chief executive officer Leo Tsoi. “Our 10,000 partners are excited to welcome customers back to the Starbucks third place, as we resume dining-in services in 800 stores in the short space of 48 hours. It’s Starbucks modest contribution to help Shanghai customers return to their pre-outbreak routines and lifestyles, and get the city back to its renowned buzz and vibrancy.”

Among the stores to resume indoor dining is the Starbucks Reserve Roastery Shanghai, which will also reopen its second floor Bar Mixato and Teavanna Bar for the first time since the city’s lockdown, enriching the third place experience to serve different customer occasions throughout the day.

Since the two-month citywide lockdown was lifted in early June, Starbucks has reopened nearly 900 stores in Shanghai, home to the most Starbucks stores in the world. However, dining-in services had remained suspended in most stores.

With the easing of dining-in restrictions, stores will be allowed to serve customers at 50 to 70 percent of seating capacity, depending on store size, in accordance with latest public health regulations. Operational requirements such as social distancing will also be rigorously implemented to protect the safety of Starbucks partners and customers.

To celebrate the milestone and welcome customers back, coffee tastings – Starbucks signature coffee ritual – were held in all 800 stores.

Starbucks welcomes customers back for indoor dining in Shanghai

https://stories.starbucks.com/uploads/2022/06/SBX20220629-Shanghai-Press-Release-FeatureHorizontal.jpg

https://stories.starbucks.com/press/2022/starbucks-welcomes-customers-back-for-indoor-dining-in-shanghai/

https://stories.starbucks.com/uploads/2022/06/SBX20220629-Shanghai-Press-Release-FeatureHorizontal-1024x498.jpg

Company elevates ‘home grown talent’ to top ranks, including promotion of Molly Liu to chief operating officer

Starbucks strengthens commitment to China as Belinda Wong, chairman of Starbucks China, focuses on long-term growth strategy, innovation and social impact in the market

SHANGHAI – Starbucks Coffee Company (NASDAQ: SBUX) today announced the promotion of Leo Tsoi to chief executive officer of Starbucks China. Serving as Starbucks China’s chief operating officer and president of Starbucks Retail for the last five years, Tsoi has led efforts to grow Starbucks footprint across the Chinese mainland to 5,200 stores across more than 200 cities today. He has engineered the development of a robust and diversified store portfolio by pioneering new store concepts, which have influenced new coffee-inspired lifestyles and further elevated third place experiences for Starbucks customers in China.

As one of the leading architects behind Starbucks China’s phenomenal growth since he rejoined the company in 2012, Tsoi previously served in various leadership positions, including vice president of North China region, chief marketing officer, and vice president of Store Development and Design, making many important contributions to strengthening Starbucks coffee leadership and elevating the Starbucks Experience.

“Leo has relentlessly pushed the envelope on innovation in China where customer loyalty and love for the Starbucks brand is unmatched,” said Kevin Johnson, president and ceo, Starbucks Coffee Company. “Our strong growth in China is a testimony to our deep bench of talented leaders and their relentless pursuit of further elevating the Starbucks Experience for our customers. I have great confidence in Leo’s ability to continue building the relationships we have with our Chinese customers through our rapidly growing store footprint, market-leading digital ecosystem and customer engagement, and robust innovation pipeline.”

With Tsoi’s promotion, Molly Liu is being elevated to chief operating officer of Starbucks China. Liu is a nine-year partner (employee) responsible for leading the development of Starbucks China’s Digital Ventures business, a leading growth engine for the company. As vice president and general manager of Digital Ventures, Liu has set the foundation for Starbucks China digital flywheel through pursuing relentless innovation and building landmark digital partnerships. Under her leadership, the Digital Ventures team has continuously up-leveled the Starbucks Rewards program while launching innovative and unique digital experiences including Starbucks Delivers (MOD), Starbucks Now (MOP), and Delivery Social Gifting, among others.

With these promotions, Belinda Wong will continue to serve as chairman of Starbucks China, focusing her attention toward delivering a holistic, long term strategy for Starbucks in the market, driving innovation through Starbucks Siren Ventures in China and other partnership opportunities, as well as elevating social impact in local communities through the Beijing Starbucks Foundation.

“Starbucks success in China today would not have been possible without Belinda’s visionary leadership over the past decade, leading the company to achieve unprecedented growth and transformation with her courage, steely determination, and deep passion for Starbucks and our partners,” said Johnson. “I look forward to continue working with Belinda as she focuses on long term strategy, innovation and leading engagement with key public and private sector stakeholders to unlock transformative opportunities for our business in this critical market.”

These appointments are effective October 1, 2021.

Tsoi has served as Starbucks China’s chief operating officer and president of Starbucks Retail for the last five years, engineering the development of a robust and diversified store portfolio in China.

Starbucks Promotes Leo Tsoi to ceo of Starbucks China

https://stories.starbucks.com/uploads/2020/03/SBX2020305-China-News-Feature.jpg

https://stories.starbucks.com/press/2021/starbucks-promotes-leo-tsoi-to-ceo-of-starbucks-china/

https://stories.starbucks.com/uploads/2020/03/SBX2020305-China-News-Feature-1024x498.jpg

Today, Starbucks announced it will invest approximately $130 million (USD) in China to open a state-of-the-art roasting facility in 2022 as part of its new Coffee Innovation Park (CIP). As Starbucks largest manufacturing investment outside of the U.S. and its first in Asia, the CIP will incorporate a roasting plant, warehouse and distribution center, creating highly-skilled jobs and new career opportunities that will further drive smart and sustainable coffee manufacturing in China. The plant will serve as a key component of the Company’s global roasting network. The bold infrastructure investment further deepens Starbucks multi-decade commitment to strengthen the specialty coffee industry in China, where it aims to have 6,000 stores by 2022.

Building on Starbucks <a href="https://stories.starbucks.com/stories/2020/starbucks-announces-multi-decade-aspiration-to-become-resource-positive/">sustainability announcement</a> in January, the CIP will incorporate advancements in sustainable manufacturing, smart supply chain innovation, and technology to support the aspiration to deliver the most energy- and water-efficient roasting operations for Starbucks in the world, while minimizing waste. The new roasting plant facility will be designed with the intent to apply for U.S. Green Building Council LEED Platinum certification, as well as China’s Three Star Green Building standards.

From farm to cup, Starbucks has helped shape the specialty coffee industry in China through continued investment in training and infrastructure, including the opening of the Starbucks Yunnan Farmer Support Center in 2012 to provide open-source agronomy resources to coffee farmers throughout the region. The new CIP, wholly-owned and operated by Starbucks, will source coffees from China and around the world directly from origin for processing, roasting, packaging and distribution, for the first time in China. Construction of the CIP will begin later this year in the city of Kunshan, an hour from Shanghai. 

With the CIP set to handle Starbucks largest roasting capacity outside the U.S., the investment highlights the Company’s ambition to further globalize its roasting network and reinforces Starbucks strategic focus on the U.S. and China as its two lead growth markets. Currently, Starbucks operates six other roasting facilities — one in Amsterdam to support European markets, and five in the U.S. The warehouse, roasting and distribution capabilities of the CIP will lay a strong foundation for continued business growth and development in China.

Starbucks vision extends far beyond roasting. Once in operation, the CIP will integrate green coffee bean warehouse management and processing, with plans to co-locate a highly-automated and ‘intelligent’ distribution center that will become the heart of Starbucks distribution network in China. The facility also will serve as a training ground for coffee roasters and key roles across Starbucks coffee supply chain in China. 

Starbucks Coffee Innovation Park in China extends global roasting network - Starbucks Stories

https://stories.starbucks.com/uploads/2020/03/SBX20200312-China-Roasting-Facility-Featured-Image.jpg

Starbucks Coffee Innovation Park in China extends global roasting network

Starbucks will open a new roasting plant facility in China in 2022, its largest outside of the U.S.

https://stories.starbucks.com/press/2020/starbucks-coffee-innovation-park-in-china-extends-global-roasting-network/

https://stories.starbucks.com/uploads/2020/03/SBX20200312-China-Roasting-Facility-Featured-Image-1024x498.jpg

Today, Starbucks announced it will invest approximately $130 million (USD) in China to open a state-of-the-art roasting facility in 2022 as part of its new Coffee Innovation Park (CIP). 

As Starbucks largest manufacturing investment outside of the U.S. and its first in Asia, the CIP will incorporate a roasting plant, warehouse and distribution center, creating highly-skilled jobs and new career opportunities that will further drive smart and sustainable coffee manufacturing in China. The plant will serve as a key component of the Company’s global roasting network, and the bold infrastructure investment further deepens Starbucks multi-decade commitment to strengthen the specialty coffee industry in China, where it aims to have 6,000 stores by 2022.

With the CIP set to handle Starbucks largest roasting capacity outside the U.S., the investment highlights the Company’s ambition to further globalize its roasting network and reinforces Starbucks strategic focus on the U.S. and China as its two lead growth markets. Currently, Starbucks operates six other roasting facilities—one in Amsterdam to support European markets, and five in the U.S. The warehouse, roasting and distribution capabilities of the CIP will lay a strong foundation for continued business growth and development in China.

Link to <a href="https://stories.starbucks.com/asia/stories/2020/starbucks-coffee-innovation-park-in-china-elevates-manufacturing-and-extends-global-roasting-network/">Press Release</a> and <a href="https://stories.starbucks.com/press/2020/starbucks-coffee-innovation-park-in-china-extends-global-roasting-network/">Fact Sheet</a>

Starbucks announces new roasting facility in China, extending its global roasting network - Starbucks Stories

https://stories.starbucks.com/uploads/2020/03/SBX20200312-China-Roasting-Facility-Featured-Image_2.jpg

Starbucks announces new roasting facility in China, extending its global roasting network

Starbucks announces a new roasting plant facility in China, extending its global roasting network.

https://stories.starbucks.com/stories/2020/starbucks-announces-new-roasting-facility-in-china-extending-its-global-roasting-network/

https://stories.starbucks.com/uploads/2020/03/SBX20200312-China-Roasting-Facility-Featured-Image_2-1024x498.jpg

Starbucks has been actively monitoring the coronavirus situation with the health and well-being of Starbucks partners and customers remaining the top priority. 

Today, in an open stakeholder letter from CEO Kevin Johnson and CFO Pat Grismer filed as an 8-K, the company shared insight into the temporary impact that the coronavirus has had on Starbucks business in China in Q2, as well how leading through the company’s Mission and Values is driving the strength and resilience of the brand. 

Letter from Kevin Johnson and Patrick Grismer

core/button

Starbucks Reports Impact of COVID-19 on China Business - Starbucks Stories

Starbucks Reports Impact of COVID-19 on China Business

Company notes encouraging signs of recovery in China and continued momentum in U.S.

https://stories.starbucks.com/stories/2020/starbucks-reports-impact-on-china-business-of-covid-19/

Shortly before the Chinese New Year, Belinda Wong hung up the phone after a series of calls with her team. Alone in the quiet of her home, she contemplated everything they’d discussed. They were wrestling with a decision that would become one of the most momentous in Starbucks history. 

As chairman and chief executive officer of Starbucks China, she’s lived and breathed the company’s mission to “Inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.” She took pride in the role of Starbucks stores across the world as a third place, a place for human connection. But now, as she considered reports of an alarming new coronavirus outbreak, she knew she had to make a decision quickly whether to close thousands of stores across China to try to quell the spread. 

“There was no playbook for this,” she said. “It was nothing we’d dealt with – it was a new virus and we had limited facts. There was a lot of uncertainty and the situation was evolving every minute. No one was sure what to do or how things would develop. Yet we had to quickly decide how we were going to lead.”

That day, at her home in Shanghai, Wong reminded herself to unwind everything she had learned in her 30 years of experience in the retail world. “We were used to opening stores. And now we were considering doing the opposite. I had to completely reset the way I am used to thinking. But in the end, you have to think about what is the right thing to do to protect the safety of Starbucks partners and customers?” 

Working with local authorities and landlords, she made the call to close stores. 

Over the next few days, thousands of Starbucks stores in China would shut their doors, including the iconic Shanghai Reserve Roastery. Starbucks would be among the first major brands to proactively close their retail stores, eventually totaling more than half of the company’s 4,300 stores that employ 58,000 people. 

Starbucks puts people in the center of every decision, she said. “It wasn’t so much about business anymore. I remembered how Howard (Schultz, Starbucks founder and chairman emeritus) used to say that not every decision is an economic one. That has stuck with me throughout the years. It helped me to understand what I needed to do.”

Starbucks didn’t just close its retail stores. Wong and her team found new ways to support partners, physically, financially and emotionally, and new ways to connect with customers, despite the physical isolation and lockdowns imposed in some areas. Today, as new cases in China are on the decline, most of the Starbucks stores in China are open again. As COVID-19, the disease caused by coronavirus, has spread across more than 70 countries, there are lessons that can be shared around the globe.

Partners at the heart of response

During a crisis, John Culver, Starbucks group president of International Channel Development and Global Coffee &amp; Tea, said that, “words aren’t important, actions are.”

As Wong’s manager and friend, he’s spoken to her twice a day for years, usually early in the morning and again on his drive home from the Starbucks headquarters in Seattle. He was in China in early January for the Starbucks partners annual Chinese New Year celebration and spring dinner in Shanghai. “It truly was a celebration,” he said. “It was a celebration of the company, our partners’ passion for coffee, and all that’s great about Starbucks.… While I was there, news began to emerge that there was this virus.” 

When the call was made to close stores in China, Wong and Culver talked about what partners would need to feel supported, both emotionally and financially. 

Starbucks made the decision to continue paying its partners even when their stores were closed. Even today, as stores reopen, that commitment stands until everyone is back to work. 

The company may be impacted financially, Wong acknowledges, but “there are moments where you just have to do things and put the safety of the partners first.” 

In China, where in normal times a new Starbucks opens about every 15 hours, she knows that partners play a huge role in the company’s success. Starbucks has built a culture where every partner is treated like family, she said, which drives strong partner engagement and loyalty. 

Culver thinks the business will emerge stronger for it. “What we are seeing in China is the values of the company in action,” he said. 

In a country where family is especially important, Wong wanted to make sure that not only do partners feel cared for, but their families as well. “The whole time I felt as though I wasn’t just responsible for 58,000 partners, but for 200,000 or 300,000 individuals, including their families,” she said.

In 2017, Starbucks China began offering a pioneering critical illness insurance plan to cover partners’ parents. Now, in the wake of the new crisis, the company again expanded insurance benefits for partners and their families.

Frank Han’s parents moved in with him after Wuhan, China, was locked down. His dad began running a fever and soon after, so did his mother, who tested positive for COVID-19. Han, a Starbucks store manager, reached out to his operations leaders at work, and “when they found out about my situation, they activated the whole company, and everyone chipped in to help in any way they could.” 

Eventually, both of his parents were admitted to the hospital, where they remain in stable condition. The extended insurance “has given me assurance and peace of mind to focus fully on taking care of my parents,” he said.

The company also offered a way for partners to check in using its partner app, letting others know that they and their families are safe and well. It also enabled the company to identify partner and family cases immediately, while allowing partners to ask for assistance if needed.

Partners whose stores were closed could also use the app to help fellow partners in stores that were still open. “Above all, they used it to stay connected,” said Wong. She began offering daily updates and answering any questions that partners had for her. 

“One of the biggest things I learned was how to handle 58,000 people’s emotions, to really empathize and care for them, and also uplift their spirits in a difficult time,” Wong said. “It changed how I communicate. I bring them along on every step. If they have a question, I answer it personally, no matter who they are.” 

With many partners staying at home, the company reached out to engage and encourage them to stay positive, to keep the sense of Starbucks community active and hopeful. Partners were invited to attend online classes through Starbucks China University, where they could virtually come together and learn about everything from latte art to personal development, such as leadership training. 

Starbucks also began offering the Partner Assistance Program, a free, anonymous counseling service not just for partners, but their family members as well. And, partners supported each other in creative ways as well. 

Before the outbreak, Sean Zhu, a shift supervisor at a Starbucks in Wuhan, had planned to host a party in late January to celebrate his birthday with his fellow partners from work. Instead, when the day arrived, he was home alone and under lockdown. 

“But the partners did not forget my birthday and they hosted a special ‘virtual party’ by video call for me,” he said. “We are truly a family.”

Culver said he and other leaders see that type of support in action time and again. “What do families do during a crisis? They come together and they support and love each other,” he said. “They take care of one another. And this is on a scale that we’ve never seen happen before – and that’s uniquely Starbucks.”

A cup of comfort to customers

During the height of the outbreak, Wong said she was well aware that coffee isn’t just a beverage – it’s also a symbol of normalcy and routine. 

“We have a sense of responsibility to our customers to serve them that cup of comfort,” she said. “At that point we weren’t even thinking about the business, I just knew a cup of Starbucks beverage would be good for the soul.”

To find ways to allow customers to have that experience while keeping everyone safe, partners got creative. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 

In the stores that remained open, they created the “Contactless Starbucks Experience.” It leverages digital ordering, such as Mobile Order and Pay through the Starbucks app, but minimizes human contact and reduces time in the store itself. It works like this: a customer orders a beverage via the app, and when they go to the store to pick it up, a partner waiting at the entrance takes their temperature and checks them in. Another partner, wearing gloves, places their beverage on the Mobile Order and Pay station, which has been relocated to the front of the store, then steps aside. The customer then steps forward, picks up their beverage and leaves.

But, despite the lack of human contact, Starbucks partners continue to find ways to connect with customers. In China, when a customer orders via the app, they are given a special code to show when they pick up the order. During the COVID-19 crisis, the code has been changed to inspiring messages, such as “Hang in there” and “Tomorrow will be spring.”&nbsp; 

“It is a way to connect with them,” Wong said.

Delivery riders bringing coffee to customers sanitize their delivery vehicles and boxes frequently and leave the delivery package in a place where the customer can pick it up without contact. And even then, partners personalize the experience by writing uplifting messages to their customers. “Be strong, like coffee,” some of the cups say 

Wong said she marvels that 49 years after the company was founded on bringing people together over coffee, its culture continues to inspire partners and customers to find completely new ways to connect, even with masks, gloves and a restriction on human contact.

Transparency is important so customers understand the precautions being taken, she added. Stores posted signs detailing how the Contactless Starbucks Experience works. “They felt safe and trusted us,” she said.

Across China, close to 200 community programs initiated by partners sprung up spontaneously. Many partners delivered handcrafted Starbucks beverages expressing their gratitude to medical personnel in nearby hospitals and others working at the front lines.

“We didn’t ask them to do it, they did it on their own,” Wong said. “This is how positive they are and how much love they feel. They are passionate and eager to do their part for the country, and send cheer to all the brave people working tirelessly to serve and protect others.” 

Lessons for the U.S. and beyond

Last week, a new report by the WHO-China Joint Mission on Coronavirus Disease, noted that “China’s bold approach to contain the rapid spread of this new respiratory pathogen has changed the course of a rapidly escalating and deadly epidemic.” 

But, it went on, “much of the global community is not yet ready, in mindset and materially, to implement the measures that have been employed to contain COVID-19 in China. These are the only measures that are currently proven to interrupt or minimize transmission chains in humans.”

COVID-19 continues to spread around the globe, detected in more than 70 countries to date and on every continent except Antarctica. It’s estimated to have infected nearly 90,000 people and killed more than 3,000. As of Wednesday afternoon, 11 deaths from COVID-19 in the U.S. had been reported, almost all in Washington state.

In recent weeks, partners at Starbucks headquarters in Seattle have been convening to plan a response for when the virus came to the U.S. and other regions. Rossann Williams, executive vice president of U.S. company-operated business and Canada, said the company has learned a lot from the response in China and Japan and is looking at what is meaningful and appropriate in the United States.

“Everything is through the lens of keeping partners safe,” she said. 

The company is relying on guidance from the Centers for Disease Control and Prevention, local governments, talking with other industry experts and is making decisions based on scientific evidence.

Already, partners in the stores have been directed to sanitize high touch areas at the front and back of the store regularly, ideally every eight minutes, but no more than 30, she said. 

China

Starbucks ceo Laxman Narasimhan visits partners in China

Photo essay: Starbucks China partners visit with Howard Schultz, chairman emeritus

Starbucks Opens its 6,000th Store in China

Starbucks welcomes customers back for indoor dining in Shanghai

Starbucks Promotes Leo Tsoi to ceo of Starbucks China

Starbucks Coffee Innovation Park in China extends global roasting network

Starbucks announces new roasting facility in China, extending its global roasting network

Starbucks Reports Impact of COVID-19 on China Business

One global company’s steps to navigate COVID-19 in China – and the lessons learned

A message from Starbucks ceo: China partners make us proud as stores start to reopen

Starbucks Launches Bar Mixato in Starbucks Reserve Roastery Shanghai

Starbucks and Alibaba Launch Voice Ordering and Delivery