Cafes catch cold from Starbucks expansion plan

The world biggest coffee chain, Starbucks Corp, plans to increase its network in China to 3,400 stores over the next five years, which could pose challenges for small, independent coffee stores, industry sources said.

The United States-based coffee chain said on Dec 4 at an investors' meeting at its headquarters that its operations in China and the Asia-Pacific region represent "enormous, immediate and high-value opportunities" for the company.

Belinda Wong, president of Starbucks China, said that the country, which is the fastest-growing market for Starbucks, already has 1,400 stores in 84 cities with more than 3 million transactions per week.