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Saturday, Feb 07, 2026

Starbucks Plans Middle East Expansion with 500 New Stores

Starbucks Plans Middle East Expansion with 500 New Stores

In response to a challenging year marked by customer boycott, the coffee giant outlines ambitious growth plans in the region.
Starbucks Corporation has announced significant expansion plans in the Middle East, aiming to open approximately 500 new stores and create 5,000 jobs over the next five years.

This initiative follows a difficult period for the company marked by regional customer boycotts.

During an interview with Bloomberg Television on Friday, CEO Brian Niccol shared the company’s outlook, indicating a strong commitment to revitalizing its presence in a market where it currently operates more than 1,300 locations.

Last year, Starbucks faced backlash from consumers who alleged that the company did not do enough to pressure Israel to cease hostilities in Gaza, with reports indicating that this boycott severely impacted foot traffic and sales in the Middle East, as well as affecting the brand's operations in the United States.

Niccol, who was on his first visit to the Middle East since taking over as CEO, commented on the previous boycott, stating that the campaigns against Starbucks lacked factual basis, asserting, "We have never supported any military forces."

In addition to its Middle East expansion, Starbucks is also eyeing growth opportunities in China, planning to add several thousand stores despite facing challenges from fluctuations in economic recovery and competition from lower-priced brands.

Niccol visited China in January for the first time since his appointment as CEO, where he discussed potential strategies for the company's performance in the region.

Starbucks recently reported stronger-than-expected sales for the first quarter of its fiscal year, aligning with ongoing transformation efforts within the company.

For the 13-week period ending December 29, the Seattle-based coffee giant recorded revenues of $9.4 billion, exceeding Wall Street's expectations of $9.3 billion, as reported by FactSet.

Excluding certain items, Starbucks also reported earnings of $0.69 per share, surpassing projections of $0.67.
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