Starbucks hits headwinds in Brazil

José Sette José Sette

José Sette

Consultant

发布日期: 2023年11月17日
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The Brazilian press reports that SouthRock Capital, the company responsible for Starbucks’ retail operations has filed for protection from creditors. SouthRock, founded in 2015, also controls the Eataly, Subway and TGI Friday’s brands in Brazil. The filing was linked to Starbucks Coffee International’s termination of its licensing contracts with South Rock. The total debt of SouthRock is approximately US$360 million.

The number of active Starbucks stores in Brazil reached 187 and has now fallen to 144.

The reasons cited by Brazilian analysts for the poor performance of Starbucks in Brazil include: a challenging macroeconomic environment, the Covid-19 pandemic, stiff competition from local brands and the failure to adapt its menus to the tastes of Brazilian consumers.

It will be interesting to see where Starbucks will go from here. Three options have been put forward for Starbucks: come to a new agreement with SouthRock; find a new licensee; or take direct control over Brazilian operations.

A sample article (in Portuguese) on the subject is: https://g1.globo.com/economia/noticia/2023/11/09/veja-perguntas-e-respostas-sobre-a-crise-da-starbucks-no-brasil.ghtml

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