Starbucks is only present in 3 out of 54 African countries due to various factors. While Africa is a major coffee producer, coffee culture on the continent isn’t as strong as in other regions.
The high costs associated with Starbucks’ premium brand are a major barrier. Local franchisee companies, not Starbucks itself, own and operate the outlets, sourcing products, branding, and training from the corporation.
However, Starbucks’ products are significantly higher—up to 25 percent more expensive than local competitors—putting them out of reach for many consumers in the countries they are established in.
The small middle class can’t easily afford such luxury in most African countries. Though the brand attracts attention as a premium option, its steep prices limit the customer base, which is why Starbucks has only expanded into a few select markets where the local economy can sustain the demand for a high-end coffee experience.
South Africa
Starbucks entered the African market in 2016 through a partnership with South Africa’s Taste Holdings, a franchising company. The first store opened in Johannesburg, marking Starbucks’ debut on the continent. However, in addition to South Africa, Starbucks also has locations in North African countries like Egypt and Morocco.
After opening 12 stores in South Africa, Taste Holdings decided to pause further expansion, citing the current business structure and market conditions. One of the challenges is the intense competition in South Africa’s coffee retail sector, which includes large homegrown chains that have already established a strong presence.
Taste Holdings, which also owns Domino’s Pizza, found the competitive landscape tougher than expected. Starbucks faces significant challenges in this market, with local brands offering strong alternatives to the premium prices that Starbucks demands, making it harder for the brand to dominate.
Egypt
Starbucks entered Egypt in 2006, making it the first country to have Starbucks in Africa; launching its first store in the City Center, Nasr City. Over the years, the brand has expanded significantly, and by 2024, Egypt boasts 80 Starbucks locations.
Most of these are concentrated in Cairo, with 67 outlets, followed by 7 in Alexandria, 5 in Giza, and 1 on the North Coast. Starbucks has seen strong growth in Egypt, a trend attributed to its successful performance in the country compared to South Africa.
This expansion demonstrates how Starbucks has managed to capture the Egyptian market more effectively, possibly due to cultural appeal or a more favorable business environment.
Morocco
Starbucks entered the Moroccan market on December 5, 2012, in collaboration with Alshaya Morocco S.A.S, a subsidiary of the M.H. Alshaya Co., one of the Middle East’s largest retailers.
The first two stores were opened in the iconic Morocco Mall, located in Casablanca, signaling Starbucks’ expansion into North Africa. This move made Morocco the second African country to host the popular coffee chain after South Africa.
Since then, Starbucks has steadily grown its presence in Morocco, with all 18 outlets concentrated in Casablanca and Rabat as of 2024.
The brand’s success in Morocco is partly due to its partnership with Alshaya, a company that has been a key franchisee for Starbucks in the Middle East and North Africa since 1999.
together, Starbucks and Alshaya have opened over 500 stores across the region, bringing the globally recognized coffee experience to many Middle Eastern and North African cities.
Alshaya is also a franchisee for other prominent global brands such as H&M, expanding its portfolio to various sectors.
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