Mexican quick-service hospitality group Alsea has released its third-quarter trading figures for its licensed Starbucks operations, revealing a mixed performance. While the company experienced strong sales in Mexico and South America, its results were dampened by declining sales in Europe.
Alsea, which manages 1,858 licensed Starbucks locations across 12 markets in Latin America and Europe, attributed its challenges to ongoing “macroeconomic difficulties” in France and the Benelux region, which negatively impacted Starbucks sales during the quarter ending September 30, 2024.
In a notable development, Alsea closed three Starbucks locations in the Netherlands—its only market to see a net decrease in stores during the period. The company has reported challenging trading conditions in Europe for three consecutive quarters. In July 2024, Alsea highlighted that consumer boycotts of American brands in Western Europe, spurred by concerns over Starbucks’ stance on the Israel-Gaza conflict, were hindering sales.
Despite these setbacks, Alsea reported a total like-for-like sales growth of 2.6% for Starbucks in the third quarter. This figure falls short compared to its fast-food and full-service restaurant segments in Europe and Latin America, which experienced increases of 16% and 6.3%, respectively.
In Mexico, Alsea’s largest market with 860 Starbucks stores, the company achieved a 2% increase in like-for-like sales. In South America, the chain reported an impressive 30% growth, which helped to offset a significant 12.3% decline in like-for-like sales in Europe.
Armando Torrado, CEO of Alsea, expressed optimism, stating, “With Starbucks, we continue to show signs of resilience. Despite challenges in specific markets such as France and Benelux due to external factors, Starbucks remains a strong brand with a loyal customer base. In Mexico, despite facing a difficult comparison base, the brand is a key driver of our business with consistent growth in both same-store sales and pipeline development.”
Torrado noted that Mexico presents the greatest potential for Starbucks among its Latin American markets. During the third quarter, Alsea opened 16 net new Starbucks stores in Mexico, which are performing well.
The franchise group also sees significant growth opportunities in Colombia, where it currently operates 72 locations. In August 2024, Alsea announced plans to invest $12 million to open 30 new Starbucks stores in Colombia over the next three years.
In addition to its efforts in Mexico and Colombia, Alsea opened eight net new Starbucks stores in France, five in Spain, three in Chile, two in Portugal, and single locations in Uruguay and Colombia. The company also operates licensed Starbucks stores in Argentina and Paraguay.
Alsea’s third-quarter results coincide with Starbucks’ announcement of a 2% full-year like-for-like sales decline across its 87 markets, with total fourth-quarter figures down 7% year-on-year.
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