The fast-casual group’s proposed acquisition comes after São Paulo-based SouthRock declared bankruptcy last year after amassing debts of R$1.8bn ($363m)
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Starbucks opened its first store in Brazil in 2006 at São Paulo’s Morumbi Mall | Photo credit: Engin Akyurt
São Paulo -based restaurant group Zamp has agreed to buy the rights to operate Starbucks in Brazil from SouthRock for R$120m ($22.7m).
Zamp, which operates licensed Burger King and Popeyes stores across Brazil, has been negotiating terms to acquire Starbucks business in the South American country since February 2024, after the coffee chain’s Brazilian franchisee SouthRock declared bankruptcy in December 2023.
In a securities filing, Zamp said the sum of the purchase could be subject to change depending on how many of approximately 130 Starbucks stores, net debt and inventory it acquires when the deal is finalised.
While other bids to buy SouthRock’s Starbucks assets could be made, Zamp said it has ‘reached an understanding’ with Seattle-based Starbucks regarding its plan to operate and develop the brand in Brazil. Zamp also has the right to match potentially higher bids, according to the filing.
Starbucks opened its first store in Brazil in 2006 at São Paulo’s Morumbi Mall. The US coffee giant entered a franchise partnership with SouthRock in 2018, which reached 197 outlets across the country at its peak.
However, having accrued debts of R$1.8bn ($363m) during the pandemic, São Paulo-based SouthRock began shuttering stores in 2023 and operated approximately 130 outlets in the fourth quarter of 2023.
Zamp, owned by UAE-based investment firm Mubadala, has operated licensed Burger King restaurants in Brazil since 2011 and launched Popeyes in the South American country in 2018. The restaurant group currently operates more than 900 Burger King stores and over 50 Popeyes outlets.