Starbucks unit bullish on Thai prospects

Starbucks Thailand is planning to open 30 stores a year, even as competition in the country’s coffee market intensifies.
Nednapa Srisamai, managing director of Starbucks Thailand, said the company believes the country’s coffee market is still growing, with competition intensifying as new players are constantly getting on the bandwagon
As the country faces a high level of household debt, consumers are now being more careful when it comes to spending money, but the company still views Thailand as a market offering good potential in Southeast Asia, she said.
According to data from the Bank of Thailand, total household debt tallied 16.3 trillion baht as of the second quarter of 2024, representing 89.8% of GDP.
“We estimate that there’s still huge room for growth for the coffee business,” she said.
The company aims to add five more stores in Thailand by the end of this year, which would increase the total number of stores in the country to 522, with a plan to expand at a rate of 30 stores per year going forward.
Starbucks Thailand launched its latest “Starbucks Reserve” flagship store on Tuesday at One Bangkok, one of Thailand’s largest integrated mixed-use development projects, located in the central business district. It is the fourth store of its kind, following Siam Square One, CentralWorld and ICONSIAM.
Covering an area of more than 860 square metres, Starbucks Reserve is Thailand’s largest so-called Greener Store. A Greener Store requires certification, which is granted to stores that adhere to strict environmental standards concerning water conservation, energy efficiency, waste reduction, and the use of sustainable materials.
“The two-storey store design draws inspiration from the elevated landscapes of northern Thailand where coffee is grown,” said Thanasak Kulrattanarak, store development director of Starbucks Thailand.
The ground floor represents a coffee tree and is dedicated to crafting and serving coffee. The second floor reflects a coffee landscape and canopy, providing customers with a serene seating area.
This store is the first of its kind to feature a Condiment Bar, a sustainable innovation that encourages customers to clear up properly and dispose of their waste properly, reinforcing the company’s commitment to sustainable practices.
Starbucks Thailand aims to open 20 Greener Stores in Thailand by the end of this year, as part of the company’s efforts to advance its sustainability goals and expand its green footprint, said Ms Nednapa.