American coffee chain Starbucks has signed a licence agreement with Taste Holdings to bring the coffee outlet to South Africa.
According to Business Day, the agreement gives Taste Holdings the exclusive right to develop the coffee chain outlet in South Africa. It will own and operate the Starbucks stores in the country. Taste Holdings also holds the licence agreement to develop the US pizza brand Domino's Pizza in South Africa.
"We are very excited to be Starbucks’ partner in Southern Africa. As we’ve visited numerous Starbucks markets and partners around the world we’ve come to realise that we share similar core values, including a commitment to localisation and uplifting both direct and indirect partners," said Taste CEO Carlo Gonzaga in a Business Day report.
Starbucks' Europe, the Middle East and Africa president, Kris Engskov, said that the company was keen to be part of the coffee market in South Africa.
"We are proud to be bringing Starbucks to South Africa next year. The coffee market here is vibrant and growing fast. We want to be part of that growth," Engskov said.
The agreement will see new jobs being created in South Africa as each store opens.
It is expected that the first store will open in Johannesburg in mid-2016.