The announcement comes less than a month after Starbucks MENA licensee Alshaya Group paused plans to sell a major stake in the business
Starbucks currently operates over 2,000 stores across 13 MENA markets in partnership with Kuwait-based franchisee Alshaya Group | Photo credit: Tony Sebastian
Starbucks CEO Brian Niccol has outlined plans to open 500 new stores in the Middle East and North Africa (MENA) over the next five years
The expansion plan comes as the US coffee giant renews its focus on outlet growth in the region as consumer boycotts subside following 12 months of difficult trading but is less ambitious than a previous growth target.
Starbucks currently operates over 2,000 stores across 13 MENA markets in partnership with Kuwait-based franchisee Alshaya Group, which in October 2023 outlined plans reach reach 3,000 licensed Starbucks stores by 2028.
However, the outbreak of the Israel-Gaza war shortly after created severe turbulence for Starbucks’ MENA business as widespread consumer boycotts due to the US coffee chain’s perceived stance on the conflict led to significant sales declines.
Speaking to Bloomberg Television during his first visit to the Middle East since becoming Starbucks CEO in September 2024, Niccol said the boycotts ‘were not based on anything that was accurate or true’ and had hurt the Starbucks brand.
Indicating improving fortunes for Starbucks in the Middle East, in January 2025 Alshaya Group CEO John Hadden said boycotts began to soften in the fourth quarter of 2024 and paused plans to sell a minority 30% stake in the Starbucks franchise.
Alshaya Group’s largest Starbucks MENA markets by both outlets and sales are Turkey, Saudi Arabia and the UAE, where it operates over 720, 480 and 330 stores respectively. In 2024, Turkey contributed 39% of Starbucks total MENA revenue, followed by Saudi Arabia (24%) and the UAE (19%).
In February 2025, Niccol met with H.H. Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, to discuss Starbucks plans to elevate the retail and food sectors in the UAE. Further indicating growth plans in the Kingdom, Niccol spoke at the UAE World Governments Summit in Dubai and pledged a joint $6m donation with Alshaya Group to upskill and empower Emirati youth.
Planned MENA outlet growth comes as Niccol begins to shift his focus from improving US store sales, which currently account for 70% of Starbucks total revenue, to scaling the coffee chain’s international footprint.
Niccol told Bloomberg Television that he visited key markets in East Asia, including China, Japan and South Korea, in January 2025 and sees significant growth potential in the region. On China, Starbucks’ second largest market globally with over 7,500 stores, Niccol said the coffee chain would add thousands of new stores. Outlet growth could be supported by a new operating model in China, with Starbucks exploring opportunities to partner with a local master franchisee or private equity firm in the country.