Inside the 30000-Square-Foot Starbucks Reserve Roastery in Shanghai


Located on Nanjing Road West, the city's most famous shopping street, the 30,000 sq ft store will offer customers a high-end experience and will include a "Reserve roastery" which will allow customers to watch beans being roasted.

The biggest Starbucks in the world is headed to China: The coffee behemoth will unveil its newest fancy Roastery location in Shanghai on December 6, occupying a whopping 30,000 feet. In the third quarter ending October 1, China's comparable store sales grew 8 percent, compared to a 2 percent global growth and 2 percent growth in the US market.

The one bright spot was China, which stood out as Starbucks' fastest growing market.

"The roastery is not just a new physical environment, it is an opportunity to create a new super premium brand, Starbucks Reserve", Schultz said.

In the USA, the company's largest market, there are roughly 15,000 Starbucks locations. That's up from 5.5 per cent five years earlier.

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Partnering with e-commerce giant Alibaba, the Roastery will be "the first fully immersive coffee experience in Asia" combining coffee appreciation with a state-of-the-art augmented reality (AR) system. The company agreed to acquire the remaining 50 per cent of the business in a $1.3 billion transaction, giving it ownership of about 1,300 cafes in Shanghai and the Jiangsu and Zhejiang provinces. "It is also another example of Starbucks tying together a physical store experience with new technology" said Starbucks CEO Kevin Johnson when announcing this at the GeekWire Summit in September.

Starbucks has said it plans other Roastery cafes in New York, Tokyo and Italy.

It's part of a new line of upscale shops the company is rolling out around the world.

As Silvia Antonioli reports, the opulent flagship store with gourmet coffees and a bakery and will be open to the public on Wednesday - one of the 10,000 outlets that Starbucks is planning to operate in China within a decade. Still, rollout has been slowed by high construction costs and trouble finding suitable real estate.