Starbucks (SBUX.US) is planning to expand its presence in the Middle East by opening 500 new stores, aiming to revitalize global business growth.

Global coffee chain Starbucks (SBUX.US) is actively planning to expand in the Middle East after facing tough challenges last year, with the aim of recovering its business. The company's CEO Brian Niccol recently said that Starbucks plans to add about 500 stores and create 5,000 jobs in the Middle East in the next five years. Currently, Starbucks has more than 1,300 stores in the region. Last year, Starbucks faced strong consumer boycotts in the Middle East after being accused of not pressuring Israel to end its military actions in the Gaza Strip, which significantly affected foot traffic and sales in the region, as well as its US business. During his first visit to the Middle East as CEO, Niccol emphasized that the boycott activities "have no basis in fact or accuracy," and clearly stated that Starbucks "never supported any military." Niccol, who joined Starbucks in September 2024, is tasked with reviving the company's growth momentum. He initially focused on the North American business, which accounts for about 75% of the company's total revenue, and planned to restructure the company's architecture, streamline processes, eliminate management layers, and clarify responsibility assignments to improve operational efficiency. Although these changes may lead to layoffs, the company announced related plans in early March. Now, Niccol has turned his attention to international markets. In addition to the expansion plans in the Middle East, he also said that Starbucks plans to add thousands of new stores in China to support its global growth targets, despite facing challenges such as uneven economic recovery and fierce competition from low-priced rivals. Starbucks is reportedly evaluating options for its China business, which may include selling a portion of its shares. Niccol visited China for the first time in January this year. The market responded positively to Niccol's moves. As of February 13, Starbucks' stock price has risen 20% this year. The company said in late January that the sales decline had eased, indicating that Niccol's strategy is starting to bear fruit.