The quick-service hospitality group reported a slight sales decline for its licensed Starbucks stores in Europe as consumers continue to ‘boycott American brands’ amid heightened tensions in the Middle East
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Alsea’s Starbucks sales in Europe fell 0.1%, with revenues in France and the Netherlands hardest hit | Photo credit: Erik Mclean
Mexican quick-service hospitality group Alsea opened 15 net new Starbucks stores in its first quarter but reported coffee shop sales falling in Europe amid lower footfall.
Alsea operates 1,792 Starbucks stores across 12 markets in Latin America and Europe. The licensee opened 10 new Starbucks outlets in Mexico in the three months ending 31 March 2024 to reach 830 sites. Alsea also opened two new stores in Colombia and six outlets across Spain, Portugal and Luxembourg during the period.
However, Alsea reported ‘boycotts of American brands’ in western Europe hindering sales as consumer concerns over Starbucks position on growing tensions in the Middle East continue to bite. Alsea’s Starbucks sales in Europe fell 0.1% in the quarter, with revenues in France – Alsea's second largest Starbucks market with 243 stores – and the Netherlands hardest hit.
“We continue to promote products and formats that help us improve the portfolio mix, offsetting the pressure mainly coming from France and Holland,” said Armando Torrado, General Director, Alsea.
Alsea posted 10.6% year-on-year sales growth in Mexico and 19.5% like-for-like sales growth in South America for its Starbucks segment.
The Mexico City-based group, which also operates licensed Domino's Pizza and Burger King outlets across Latin America and Europe, achieved 2.7% year-on-year group sales growth to ₱18bn ($1.07bn).
Starbucks outlets currently comprise 38% of Alsea’s total 4,641-store footprint.