Starbucks raises bet on China despite coronavirus blow

Chain commits $130m to build largest overseas roaster near Shanghai

Starbucks China 20200316

Starbucks has projected that the COVID-19 outbreak will reduce its expected revenue from China in the quarter ending March 31 by $400 million to $430 million. © Reuters

CK TAN, Nikkei staff writer

SHANGHAI -- Shrugging off worries about the long-term impact of the new coronavirus outbreak, Starbucks Coffee has committed to invest $130 million into building its largest overseas coffee roaster near Shanghai.

Starbucks' emphasis on China as its top focus market alongside the U.S. means that the shutdown of most of its Chinese store network during the worst of the outbreak is set to take a big bite out of its profits.

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