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Starbucks buys French operations

SEATTLE Starbucks Corp. said Tuesday it would acquire full ownership of its operations in France, which operate under a joint-venture partnership between Starbucks and a Spain-based licensee, for an undisclosed price.

The transaction, which would convert the French market to a fully corporate-operated division, is expected to close Sept. 30. Starbucks’ joint-venture partner, Sigla SA, also known as Grupo Vips, would then hold exclusive rights to operate Starbucks coffeehouses within the market territories of Spain and Portugal.

“This agreement underscores Starbucks' commitment to France and our belief in the long-term market’s potential,” Philippe Sanchez, managing director of Starbucks Coffee France, said in a statement.

The current leadership teams for France, Spain and Portugal will remain in place, the company said.

Starbucks opened its first location in Paris in January 2004 and now operates more than 50 locations in France near the capital city and Lyon. Worldwide, Starbucks has 16,729 coffeehouse units.

International expansion is one positive area of growth for Starbucks, which has struggled with decreased customer traffic in the United States for nearly a year, which has led it to close hundreds of domestic locations.

Last month, Starbucks reported a 6.6-percent drop in revenue to $2.4 billion in its third quarter ended June 28. Global same-store sales fell 5.0 percent.

Contact Sarah E. Lockyer at [email protected].

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