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Starbucks announces $5 million fund in China
(AP)
Updated: 2005-09-19 19:51

Starbucks, which opened in China in 1999, has only 140 outlets in the country, a small fraction of its almost 6,000 stores in the United States.

However, Schultz said, the company was aiming to increase its Chinese presence significantly.

"We have big opportunity in China," he said. "We think the number of stores here can rival the number in North America. We're in the embryonic stage here."

Starbucks push into China coincides with a rapid rise in disposable incomes among members of the country's emerging middle class in large cities like Beijing and Shanghai.

Other American food franchises including McDonald's and Kentucky Fried Chicken dot the country's urban landscape, attracting customers with the promise of an attractive product served in a clean environment at a reasonable price.

Schultz said Chinese consumers spent more time in Starbucks outlets than their counterparts in Europe or the United States, possibly because of the relatively cramped nature of Chinese apartments.

"Chinese consumers use the stores as an extension as home or work," he said.

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