Mexicans Will Have More Starbucks Options in 2012

Operator Alsea expects to open 50 locations throughout the country.

January 27, 2012

MEXICO CITY - Alsea, which operates casual dining restaurants in Mexico, will open 50 new Starbucks locations in the country this year, the Dow Jones Newswires reports. The company predicts double-digit growth in total and same-store sales because of a strong local economy.

Sales at Starbucks Mexico will be on par with last year??s growth, with overall sales forecast to jump 23 percent and same store sales to increase 11 percent. Alsea runs Starbucks Mexico with Starbucks Corp.

Mexico offers plenty of room to grow Starbucks, given the average coffee consumption is a mere 1.7 kilograms per person annually?"far below some coffee markets that average 4.5 kilograms per person, per year, said Federico Tejado, who heads Starbucks Mexico.

Tejado has plans to expand its version of "My Starbucks Rewards" program to an average of around 600,000 members within three years. Starbucks Mexico modeled the program on the U.S. version, and he said the loyalty card will drive traffic to its stores.

With Latin America overall doing well economically, Tejado said the region??s growth means now "it??s our moment." Even with increases in coffee and milk prices, Mexico Starbucks will hold price hikes for 2012 to under inflation.

Mexico Starbucks has been opening in hospitals, office buildings and universities, and Tejado has plans to expand into the home market with supermarket products. Alsea also runs Burger King, Chili??s and Domino??s Pizza restaurants in Mexico.

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