Until recently the chances of chasing down a decent cup of coffee in greater China were about the same as finding a good steak in India: rare.
This was tea territory. Occasionally, chilled coffee, usually instant, was allowed to share the glass with an equal portion of milk tea or sickly sweet condensed milk, but that's about as far as it went.
So it is no small wonder that Starbucks, which opened its first outlet in Beijing in 1999 and in Hong Kong a year later, has managed not just to survive but to convert java junkies at a staggering pace. The company now has almost 200 stores on the mainland, and Hong Kong outlet No50 opens on Tuesday.
It is a major growth market for the Starbucks empire. On Wednesday, the company announced a 31 per cent increase in quarterly revenues from international business to US$242 million. Chairman Howard Schulz, who started with 17 stores in 1987, said: 'I am especially excited about the opportunities awaiting us with our expansion in the broader China market.'
Most of Starbucks' 6,605 coffeehouses in the US are company-owned. But the international market, which is expanding faster and now totals 2,233 stores, relies mainly on licensed partnerships with local companies.
Maxim's Caterers, part of Hong Kong-based and London-listed Dairy Farm, is the exclusive partner for Hong Kong, Macau and Guangdong. Maxim's has a significant majority in a joint venture with Starbucks, Coffee Concepts, which in turn holds the licence to operate the stores.