Starbucks is one of the most recognized coffeehouse chains in the world, with thousands of locations across North America, Europe, Asia, and parts of Latin America.
Yet, despite Africa being the birthplace of coffee and a continent with over 1.4 billion people, Starbucks has only established its presence in three African countries: South Africa, Egypt, and Morocco.
This limited expansion raises interesting questions about market dynamics, cultural preferences, and business strategies in Africa.
Here’s a closer look at each country where Starbucks operates on the continent and what makes these markets viable for the global coffee giant.
South Africa
South Africa was the first African country to welcome Starbucks, with its debut store opening in Johannesburg in 2016. The company entered the market through a partnership with Taste Holdings, a local food and retail group.
The South African market was seen as a gateway into the broader sub-Saharan region due to its relatively high urbanization, strong middle class, and familiarity with international brands.
Cities like Johannesburg, Cape Town, and Durban have long hosted a mix of global retail chains, creating a consumer environment that is more receptive to foreign products.
However, the South African journey has not been entirely smooth. Starbucks faced a number of financial challenges and slower-than-expected expansion. Taste Holdings eventually gave up the Starbucks license in 2019, citing financial losses.
Another company, Rand Capital Coffee, took over the operation and aimed to scale Starbucks more sustainably. As of today, Starbucks South Africa continues to grow, but at a measured pace, focusing on prime urban locations where demand and brand recognition are strongest.
The South African experience reveals both the potential and pitfalls of operating a premium global brand in a country where economic inequality is stark and cost sensitivity is high.
Starbucks' pricing is relatively expensive for the average consumer, which limits its customer base primarily to the affluent and middle-class urban population.
Egypt
Egypt became the second African country to have Starbucks, with its first store opening in Cairo in the early 2000s.
Starbucks operates in Egypt through a partnership with the Alshaya Group, a Kuwait-based retail franchise operator that manages the brand across much of the Middle East and North Africa (MENA) region.
Egypt's inclusion in Starbucks’ footprint is partly due to its strategic geographic location and historical ties with the Middle East.
Cairo, a bustling metropolis with a population exceeding 20 million, presents a massive consumer base with a growing appetite for Western-style food and beverage offerings.
The café culture in Egypt has long been part of its social fabric. Traditional coffeehouses have existed for centuries, serving as hubs for social interaction and political discussion.
Starbucks fits into this cultural backdrop, particularly appealing to younger, urban Egyptians and expatriates who associate the brand with modernity and global lifestyle trends.
Starbucks in Egypt enjoys relative success thanks to a combination of factors: population density, a youthful demographic, a growing middle class, and the support of an experienced regional partner.
Egypt’s position as a cultural and economic bridge between Africa and the Arab world makes it a natural fit for Starbucks’ broader MENA strategy.
Morocco
Morocco is the third African country with a Starbucks presence, with its first store opening in Casablanca in 2011. Like in Egypt, Starbucks in Morocco is operated by the Alshaya Group, which has deep experience running Western brands in North Africa and the Middle East.
Morocco’s urban centers such as Casablanca, Rabat, and Marrakech offer a customer base that is increasingly globalized, well-traveled, and interested in international lifestyle brands.
Coffee culture in Morocco is vibrant and rooted in both Arab and French traditions. Locals are familiar with espresso drinks, cafés, and public coffee spaces, which makes the transition to an American-style coffee shop relatively seamless for many consumers.
Starbucks’ positioning as a premium coffee brand with a modern ambiance resonates well with young professionals, students, and tourists.
Tourism also plays a key role in Starbucks’ viability in Morocco. With millions of visitors each year, international tourists, particularly from Europe and North America, recognize and trust the Starbucks brand.
This helps create a steady flow of customers in key locations, especially in cities that cater to business travelers and tourists alike.
Why Are There Only Three?
The limited presence of Starbucks in Africa reflects a cautious approach by the company when it comes to entering emerging markets.
While Africa has a rich coffee-growing tradition, particularly in countries like Ethiopia, Kenya, and Rwanda, consumption patterns vary widely across the continent.
Many African countries have strong tea-drinking cultures or prefer traditional coffee beverages that are prepared and consumed differently than Starbucks' typical offerings.
Economic challenges, underdeveloped infrastructure, and regulatory complexities in many African markets also deter rapid expansion.
Additionally, Starbucks operates on a licensing model in international markets, which requires the right local partner with sufficient capital, market knowledge, and operational expertise. Finding such partners in every African country is not always feasible.
Ultimately, the presence of Starbucks in South Africa, Egypt, and Morocco speaks to a mix of economic readiness, cultural fit, and strategic partnership.
While these three markets may pave the way for future expansion, the rest of the continent will likely see a slow and selective rollout, if at all.
