According to the Zhitong Finance APP, Zamp SA, a giant in the Brazilian dining industry, hopes to expand the number of Starbucks coffee stores in the country to as many as 1,000, which means the store scale is expected to increase nearly ten times compared to the current level. While Zamp plans to expand Starbucks stores in Brazil, it coincides with the official appointment of Brian Nickle as the new CEO of Starbucks. The new CEO recently revealed ambitious expansion plans to redefine Starbucks physical stores as 'community coffee shops' and is dedicated to completely renovating the customer experience in Starbucks stores.

According to media reports quoting insiders, Zamp, supported by Mubadala Capital, plans to actively expand within approximately two years. Although the timetable for the recent acquisition business is still uncertain, the company regards expanding Starbucks stores as a mid-term goal.

It is understood that this Starbucks expansion strategy will focus on major cities and their airports, including Rio de Janeiro and Sao Paulo, where demand is expected to be strong, while Zamp is considering different store sizes.

This Brazilian restaurant giant also operates Popeyes and Burger King restaurants in Brazil. After losing the license to operate with Starbucks due to bankruptcy proceedings, SouthRock Capital agreed in June to acquire the rights to cooperate and operate Starbucks-related franchises from SouthRock Capital at a price of 0.12 billion Brazilian reais (approximately 22 million US dollars). Before exiting the Starbucks business, SouthRock closed nearly one-third of its Starbucks stores, attributing its business environment to major obstacles caused by high inflation and rising interest rates after the COVID-19 pandemic.

Zamp's latest plan is to expand Starbucks' business scale in Brazil, which is currently relatively small. Starbucks Corp. cooperates with third-party operators in Latin America, Europe, and other parts of the world. According to recent media reports, in the most recent quarter, Starbucks only had 128 licensed partner stores in Brazil, compared to 850 in Mexico, 609 in Indonesia, and as many as 1,937 in South Korea.

Mubadala Capital is one of the top global sovereign wealth funds and a subsidiary of the Abu Dhabi sovereign wealth fund. It took control of Zamp in February. Since then, Zamp has actively acquired franchise rights of internationally popular food and beverage brands in Latin America's largest economy. Earlier this week, the company agreed to operate the well-known brand Subway in Brazil. According to insiders, the company is seeking more business opportunities in the fast-food sector in the region.

Since Mubadala Capital took over the company at the end of February, Zamp's stock price has dropped by about 27% in the Brazilian stock market, partly due to investors' concerns about its withdrawal from the Novo Mercado sector of the São Paulo Stock Exchange. Companies trading in the 'Novo Mercado' sector of the Brazilian stock market generally have stricter disclosure and corporate governance requirements. In addition, Zamp's CEO and co-founder also resigned earlier this year.

Zamp is currently seeking an active development model, and part of the financing will be specifically used for Zamp's expansion.

In its latest financial report, Starbucks has indicated plans to expand its global Starbucks store count to 55,000, while the current global store count of Starbucks is nearly 40,000.

Last month, Starbucks underwent significant management changes, with Brian Niccol unexpectedly appointed as the new CEO of Starbucks, following a rapid decline in sales over two quarters by his predecessor, who then suddenly resigned, resulting in changes in the company's operations.

Niccol, who rose to fame for leading Chipotle, known for its famous Mexican cuisine, to a successful turnaround, officially took the helm at Starbucks last week, outlining his leadership strategy and management adjustments. In his first week in office, Niccol pledged to return to Starbucks' original mission, redefining Starbucks as a community coffee shop, committed to enhancing the store experience, and clearly distinguishing between Starbucks' 'to-go' and 'dine-in' services.

Brian Niccol took over during a period of extreme decline in Starbucks' stock price and performance, and can be described as being "between a rock and a hard place." The latest financial report data shows that due to declining demand for global coffee drinks, and with Starbucks' store operating costs and raw material costs remaining high, Starbucks' net sales in the third quarter fell by 1% year-on-year to $9.11 billion, lower than the expected $9.24 billion, with net income of $1.05 billion, lower than the same period last year's $1.14 billion, and diluted earnings per share down 6% year-on-year to $0.93 per share.

Brian Niccol has been widely regarded as a 'pioneer of change' in the dining industry since becoming CEO in 2018, single-handedly transforming Chipotle. His focus on users, culture, brand, menu innovation, operational efficiency, and digital transformation has set a new standard for the entire American dining industry, driving significant performance, market cap growth, and value creation.

Under Brian Niccol's leadership, Chipotle's market cap and performance have seen substantial growth. Revenue has almost doubled, profits have increased nearly sevenfold, and Chipotle's stock price has risen by nearly 800%. Under Niccol's leadership, Chipotle has significantly raised the standards for retail team member salaries, almost becoming a benchmark in the dining industry. Under his leadership, the company has also expanded welfare coverage, strengthened cultural management. Therefore, these are key reasons why the capital markets are bullish about Niccol leading Starbucks back to its peak. Following the announcement of Niccol's appointment as the new CEO of Starbucks, Starbucks' stock price surged over 24% on its first day of trading.