Starbucks plans to grow its presence in the Middle East, adding 500 new stores and creating 5,000 jobs over the next five years.
CEO Brian Niccol announced the expansion on Bloomberg Television on Friday, as the company seeks to recover from last year’s challenges and consumer boycotts in the region.
Starbucks operates over 1,300 stores in the Middle East. Last year, the company faced backlash from customers who accused it of not pressuring Israel to end its offensive in Gaza.
The boycotts significantly affected store traffic and sales in the region and also impacted its U.S. business, the company said.
Niccol dismissed the boycotts as “not based on anything accurate or true,” stating, “We’ve never supported any militaries.”
He made these remarks during his first visit to the Middle East since becoming CEO last year.
Niccol took over as Starbucks CEO in September to revive growth amid challenges like boycotts, long wait times, and consumer resistance to higher prices.
Initially, he prioritized North America, which generates 75% of revenue, and outlined plans to streamline corporate operations, reduce management layers, and clarify accountability.
Beyond the Middle East, Niccol said Starbucks plans to add thousands of new stores in China despite challenges from the country’s uneven economic recovery and growing competition from lower-priced rivals.
The company is also exploring strategic options for its China business, including the possibility of selling a stake.
