酷兔英语


Starbucks isn't worried about consumer spending in China, even if other U.S. food and beverage companies might be. Reason: The chain's established cafes in the region have maintained double-digit sales growth over the past couple of months.





'From a regional perspective, we have seen the momentum of our same-store sales in the fourth quarter sustained in the first two months of the current quarter,' said Starbucks's president of China and Asia-Pacific, John Culver, at an investorconference Wednesday.





In the fourth quarter, which ended Sept. 30, Starbucks's same-store sales, including those at cafes open at least 13 months, rose 10% in the China and Asia-Pacific region.





Starbucks stores in China now average $886,000 in annual sales, up from $507,000 in 2008. The company expects China to become its largest market outside the U.S. in 2014.





'We continue to see very healthy growth coming out of China,' he added. 'We are very aware of the economic environment there, but there is clearly a pent-up demand that is in the very nascent stage of us achieving saturation.'





Other major U.S. restaurant chains in China, such as Yum Brands Inc., the owner of KFC and Pizza Hut, and McDonald's Corp. have seen sales growth slow in the region recently. Higher food and labor costs have forced eateries to raise menu prices, but Chinese consumers are more cost-conscious due to economic uncertainty, preventing them from spending at the rate they once did.





Starbucks says it still sees potential for thousands of cafes in China, and will reach 1,500 there in 2015.





'China has been a gold rush for U.S. companies and, the truth is, China will not be a lasting success for many of them,' Chief Executive Howard Schultz said at the conference. The key, he said, is making sure to stay locally relevant.That way, Starbucks won't become a fleeting fad like other American trends.





One of the pioneers of localization in China, KFC, has lately struggled to maintain its relevance. Yum Brands chief executive David Novak warned last week that the company's same-store sales would drop 4% in China in the fourth quarter, with analysts and customers noting that the once modern-seeming KFC was increasingly being seen by Chinese consumers as 'just another food option.'





One factor helping Starbucks in China is its loyalty program, with three times the penetration of members per store than in the U.S., the company says.





'The Chinese consumer has embraced this concept,' Mr. Culver said. Still, 'our most loyal customers are coming to our stores four, five or six times a month, so we have a lot of room to drive frequency there.'





Also, Starbucks added that as it accelerates development of company-owned stores, they will become a much bigger contributor to overall revenue, putting less pressure on same-store sales growth.





Starbucks currently has about 700 outlets in China, compared to the 11,000 it has in the U.S., its largest market. The company expects China to become its largest market outside the U.S. in 2014.





Annie Gasparro