"Narrative Summit" Releases 2025 Recommendations to Cement Egypt's Position as a Global Tourism Destination    Egypt, S.Arabia step up trade ties through coordination council talks    Egypt reviews progress on $200m World Bank-funded waste management hub    Egypt urges Israel to accept Gaza deal amid intensifying fighting    Egypt, ADIB explore strategic partnership in digital healthcare, investment    SCZONE, Tokyo Metropolitan Government sign MoU on green hydrogen cooperation    Egypt welcomes international efforts for peace in Ukraine    Al-Sisi, Macron reaffirm strategic partnership, coordinate on Gaza crisis    Contact Reports Strong 1H-2025 on Financing, Insurance Gains    Egypt, India's BDR Group in talks to establish biologics, cancer drug facility    AUC graduates first cohort of film industry business certificate    Egyptian pound down vs. US dollar at Monday's close – CBE    Egypt's FM, Palestinian PM visit Rafah crossing to review Gaza aid    Egypt prepares unified stance ahead of COP30 in Brazil    Egypt recovers collection of ancient artefacts from Netherlands    Egypt harvests 315,000 cubic metres of rainwater in Sinai as part of flash flood protection measures    Egypt, Namibia explore closer pharmaceutical cooperation    Fitch Ratings: ASEAN Islamic finance set to surpass $1t by 2026-end    Renowned Egyptian novelist Sonallah Ibrahim dies at 88    Egyptian, Ugandan Presidents open business forum to boost trade    Al-Sisi says any party thinking Egypt will neglect water rights is 'completely mistaken'    Egypt's Sisi warns against unilateral Nile measures, reaffirms Egypt's water security stance    Egypt's Sisi, Uganda's Museveni discuss boosting ties    Egypt, Huawei explore healthcare digital transformation cooperation    Egypt's Sisi, Sudan's Idris discuss strategic ties, stability    Egypt to inaugurate Grand Egyptian Museum on 1 November    Greco-Roman rock-cut tombs unearthed in Egypt's Aswan    Egypt reveals heritage e-training portal    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Starbucks Egypt outdoing its US counterpart
Published in Daily News Egypt on 28 - 04 - 2008

CAIRO: While its coffee aroma seems to be waning in its homegrown market on the heels of the US mortgage meltdown, Starbucks is robust on Egyptian market operations.
"As a new market for Starbucks, Egypt's [sales] figures are better than those of other countries, said Omar Abdelhay, operations manager at Starbucks Egypt. "Our expansion strategy is very aggressive in Egypt, where we opened 11 stores in one year only.
He pointed out that sales figures are on the rise in Egypt. "On average, some 150,000 people enter Starbucks Egypt stores per month.
Recent business reforms, including cuts in taxes and duties, as well as a surging stock market have unleashed consumer optimism among wealthier segments of the Egyptian society. The rise in consumer spending spells record profits and rapid expansion for companies and international food chains, which are swooping on access to the country s large population.
Consumer spending has much farther to run despite the high inflation, Angus Blair, head of research at Beltone Financial, recently told Reuters. There is enormous momentum because of the growth in the economy and the tax cuts.
While Egypt's figures show that the glass is half full for the internationally renowned coffee-maker, Starbucks Corporation blamed last week hard-hit housing markets of California and Florida for slowing down its sales in the US, asserting it was the latest victim of the US mortgage meltdown.
According to recent US news reports, the coffee shop chain slashed its quarterly and 2008 profit forecast below Wall Street targets and said it faced the weakest economic environment in its history.
Given the continued weakness in the US economy, Starbucks warned that fiscal year 2008 earnings per share would be somewhat lower than the 87 cents it reported in fiscal 2007.
Starbucks reported preliminary second-quarter earnings of 15 cents per share, behind Wall Street analysts average target of 21 cents per share, according to Reuters Estimates.
Starbucks, which long considered itself virtually immune to economic swings, has admitted in recent months that some consumers have avoided its relatively expensive coffee as the economy soared.
The current economic environment is the weakest in our company s history, marked by lower home values, and rising costs for energy, food and other products that are directly impacting our customers, Howard Schultz, Starbucks founder and current CEO, said in a press statement.
As a result, Starbucks ratcheted down the number of new stores it initially planned to open this year in the US and confirmed it would close some US locations and open more stores abroad than domestically.
Despite growth slowdown in the US, Starbucks Egypt seems to have successfully established its cachet amid competition from other coffee chains, with Abdelhay expecting 2008's store growth pace to outperform last year's.
"We've had a very successful start in Egypt, and we plan to open more than 11 new stores this year, he said. "Recent economic and custom reforms have further helped us, since we import everything from abroad. These reforms have enabled us to sell at better prices. Starbucks made its debut into the Egyptian market end of December 2006, when it opened its first outlet in City Center, Nasr City. It later opened 10 more venues across Egypt in Cairo Airport, CityStars, Heliopolis, Maadi, Nile City Mall, Carrefour Alexandria, San Stefano Grand Plaza, and Sharm El-Sheikh.
Under its social corporate responsibility, Starbucks Egypt donated last July 20 percent of its first month's sales in a bid to promote literacy in Egypt. The coffee house joined forces with 4-OurKidz - an Egyptian NGO - to support educational programs for unprivileged youth by building Knowledge Corners at local school libraries.
So far, two Knowledge Corners have been established, one at El-Giza El-Kawmeya School in Cairo and another at the Mohammed Qurayem School in Alexandria. The initiative entails a full refurbishment of school libraries outfitted with educational equipment including books, furniture, and computer facilities.


Clic here to read the story from its source.