BEIJING (Reuters) - Chinese coffee startup Luckin is aiming to open 2,500 new stores this year and overtake Starbucks Corp SBUX.O as the largest coffee chain by number of outlets in the world's second-biggest economy, it said on Thursday. The firm, which only officially launched its business at the start of last year, has expanded at breakneck speed, propelled by a focus on technology, delivery, and heavy discounting even at the cost of mounting losses. “What we want at the moment is scale and speed,” Luckin’s chief marketing officer, Yang Fei, told reporters on Thursday at a presentation in Beijing. “There’s no point talking about profit,” he said, adding that subsidies to lure in more users would be an important part of the firm’s strategy for the next few years. Luckin said it was targeting a total of more than 4,500 stores by the end of 2019, which would take it past Seattle-based Starbucks that has long dominated China’s coffee scene and has over 3,600 stores in the country. Luckin’s caffeine-fuelled expansion is in stark contrast to Starbucks, which opened its first China store in 1999 and has spent two decades reaching its current store count. The U.S. chain, which spearheaded the growth of a coffee culture in China, started to see competition rise from smaller peers over the last 18 months, though Luckin has stood out as the most aggressive competitor. But Luckin’s rise has not come cheaply. The firm recorded a loss of 800 million yuan ($116.34 million) last year, which its chief marketing officer said was in line with expectations as it pushed to expand. Luckin, backed by Singapore sovereign wealth fund GIC Pte Ltd and China International Capital Corp Ltd 3908.HK, opened more than 2,000 locations in the last year, gaining a valuation of $2.2 billion after raising $200 million in a funding round last month. The firm’s chief executive, Qian Zhiya, told Reuters last year that Luckin aimed to outnumber Starbucks in China. Reuters previously reported that Luckin was also in early-stage talks with investment banks about an overseas initial public offering. The firm, however, declined to answer questions about IPO plans on Thursday.

An Indiana judge has taken an unusual step and temporarily barred Starbucks from closing 77 failing Teavana stores in Simon Property Group malls because the real estate giant was less able to handle the financial pain. Starbucks said in July it planned to shutter its 379-store Teavana operation — but Simon rushed to court to block 77 stores in its malls from going dark — claiming such a move by a high-profile tenant could spark other stores in its malls to close. Starbucks, after trying to turn around its stumbling tea chain, said last August it was pulling the plug on Teavana. It wanted to close all the stores by the end of the year. But Indianapolis-based Simon, in an environment where hundreds of stores across the country are closing, rushed to a local court to ask Judge Heather Welch to stop the store closing. Welch, in a 55-page order, found that the very profitable Starbucks could absorb the financial hit — estimated by Starbucks to be $15 million over five months — better than Simon could. The mall operator did not provide an estimate of how much the closings of the Teavana stores would hurt them. The case is being closely watched by retailers and landlords alike amid a retail meltdown that has resulted in a record number of bankruptcies this year. The retail failures have left landlords scrambling to find new tenants and retailers in the difficult position of breaking their leases. Still, it is rare that a judge orders a retailer to keep stores open, retail experts said. “I’m somewhat shocked by the ruling,” said real estate lawyer Joshua Stein. Welch “catalogues every possible detriment to Simon as a result of having vacant space,” Stein said, adding, “That’s part of a job description of owning real estate. You deal with it and don’t get injunctions to have your tenant continuing to operate.” Other industry experts, who did not want to be identified, said the ruling will send a chill down the spines of distressed retailers. “If you are a tenant that has to close a bunch of stores that are based in malls,” said one source, “you are pretty scared after this ruling.” Welch admitted that “no court has ever entered preliminary or permanent injunctive relief to specifically enforce a continuous operations covenant against a non-anchor tenant” — but she did so anyway. “We are disappointed in the judge’s ruling and will continue to focus on finding a resolution,” Starbucks, which has a market cap of $81 billion, said in a statement, noting that it is not clear whether it will appeal — or even if it is permitted to do so. Simon’s vacancy rate as of Sept. 30 was 4.7 percent — slightly below the 4.8 percent national vacancy rate for all malls, according to JLL data. Simon argues that if Starbucks is allowed to “prematurely” break its lease, it could be forced to fill the vacancies with “less creditworthy tenant(s)” or less desirable tenants “who will only agree to less desirable lease terms, and/or a shorter-term lease,” according to the court filings. Industry sources suggested that other mall operators may now challenge Starbucks’ plans to close Teavana stores in their shopping centers. Shares of Simon Property Group, a $52 billion company, gained 60 cents on Friday, to $162.35.

Starbucks has tapped Rosalind Brewer, the former president and CEO of Sam's Club, to take on the role of chief operating officer and group president, effective Oct. 2. Brewer will lead the company's operating businesses across the U.S., Canada, and Latin America, as well as the global functions of supply chain, product innovation, and store development organizations. "Starbucks is a culture-first company focused on performance and Roz is a world class operator and executive who embodies the values of Starbucks," Kevin Johnson, Starbucks' president and CEO, said in a statement Wednesday. Johnson said that Brewer had been a "trusted strategic counselor" to him since her appointment to the company's board of directors in January. Brewer, who has more than 30 years of management experience and 10 years of experience leading multinational retailers, will continue to serve on the board of directors, the company said. "Ms. Brewer has a wealth of experience in retailing, consumers and [consumer packaged goods] markets," Neil Saunders, managing director of GlobalData, told CNBC via email. "She is also used to running large, complex organization with a global focus." Starbucks has hit some snags in recent quarters in its retail sales, blaming slowing mall traffic for weak sales at its Teavana stores, in particular. The company plans to shutter all 379 of these locations by spring 2018 to deal with the prolonged underperformace. "[Brewer] was instrumental in making changes at Sam's Club to bring the retailer more in line with trends around health and wellness," Saunders said. "She also did a lot in terms of e-commerce and multichannel, and this experience will be valuable for Starbucks."

When Starbucks opened its first location in the Middle East and North Africa region in 1999, the company chose to make its debut in Kuwait City with a café on the Souq Sharq waterfront in the heart of the city’s retail and entertainment district. Eighteen years later, Kuwait City is the site of the company’s first Starbucks Reserve™ coffee bar experience, located in the city’s soaring Crystal Tower. The skyscraper itself provided inspiration for the warm wooden interiors, with triangle shaped panels reminiscent of natural crystal stones. The store combines coffee theater with local design elements, and the craft of coffee takes center stage. Existing signature features were integrated into the design, including a coffered concrete ceiling and exposed brick surfaces. “We are extremely proud to introduce this special store that showcases our passion for coffee in this region,” said Graeme Gardiner, senior operations manager for Starbucks Kuwait. “With an immersive and sensory coffee bar, the new store defines a new opportunity bringing customers closer to their coffee – and Starbucks – more than ever before.” Featuring the company’s rare, small-lot Starbucks Reserve™ coffees roasted at its Starbucks Reserve™ Roastery in Seattle, the coffee bar gives baristas (who are Coffee Masters) a platform to engage in a dialogue with customers over a variety of brewing methods. These methods include manual Black Eagle espresso, as well as pour-over, Clover ™ Brewer, Siphon and Chemex. In addition to the classic Starbucks menu, the location will also feature specialty beverages created at the Roastery that showcase Starbucks Reserve™ coffees. Stores with Starbucks Reserve® coffee bars have opened in a number of U.S. cities, including New York, Los Angeles, Chicago, Atlanta, Baltimore, Washington, D.C. and Boston. The experience is expected to make up 20 percent of the global store portfolio by 2021.

New Starbucks store opens offering rare and exquisite small- lot coffees .The world’s leading coffee company opens Qatar’s first Starbucks store with Reserve coffee, served on a Clover® Brewing System, at the Doha Festival City - Qatar’s largest entertainment, fashion and dining destination.The opening of the first Starbucks store with Reserve coffee offers connoisseurs an immersive coffee experience and an opportunity to enjoy the range of specially selected, rare and exquisite coffees. Each coffee is one-of-a-kind, sourced from small coffee growing regions in Latin America, Africa and Asia/ Pacific islands.  The store is also home to the unique Clover® brewing system which will be available to customers for the first time in Qatar. The Clover® brewing system uses innovative Vacuum-Press™ technology to create every cup of coffee right in front of the customer. It controls brewing time and temperature digitally, as even small changes can dramatically affect the outcome of the coffee’s taste.In addition, the store will also offer other premium brewing methods including Siphon, Chemex, Pour-Over and Coffee Press. Each brewing method brings out different notes and flavours of the coffee, offering customers a unique taste profiles when offered through the different brewing techniques.“People who really love coffee are always searching for new sensory experiences from their favourite beverage,” said John Smith, Senior Operation Manger – Starbucks Qatar, Oman and Bahrain. “With the opening of Qatar’s first Starbucks store with Reserve, we aim to give consumers everything their passion for coffee demands: exquisite rare beans from exotic locations selected by our master brewers for the ultimate coffee taste experience.  This opening is a very proud moment for us, and we invite everyone who loves coffee to come and taste this wonderful range.”The new store offers a stunning environment with traditional references through calligraphy and hand painted artwork applied onto herringbone timer wall, weathered copper detailed and stone cladding. Arabic mesh details are inherent in the design and references of handpicked coffees from farmlands around the world give dimension and warmth, creating a comfortable ambiance for customers.Three Reserve coffees will be on offered at the store opening – Nicaragua Maracatura, Nicaragua La Roca, and Costa Rica Vista Del Mar Yellow Honey. The store will also offer Starbucks core range of food and beverages that are known and loved by customers in Qatar.

Though our roots are in the United States, we are a global company with stores in 65 countries, including nearly 600 stores in 12 Middle Eastern and North African countries employing more than 10,000 partners (employees). In countries where we do business, we are proud to be a part of the fabric of the local community – working directly with local business partners who operate our stores, employing thousands of local citizens, serving millions of customers and positively impacting many others through our support of local neighborhoods and cities. Our 300,000 partners around the globe have diverse views about a wide range of topics. Regardless of that spectrum of beliefs, Starbucks has been and remains a non-political organization. We do not support any political or religious cause. Additionally, neither Starbucks nor the company’s chairman, president and ceo Howard Schultz provide financial support to the Israeli government and/or the Israeli Army in any way. What we do believe in, and remain focused on, is staying true to our company’s long-standing heritage – simply connecting with our partners and customers over a cup of high quality coffee and offering the best experience possible to them – regardless of geographical location. Questions and Answers: Is it true that Starbucks or Howard Schultz provides financial support to Israel? No. This is absolutely untrue. Rumors that Starbucks or Howard provides financial support to the Israeli government and/or the Israeli Army are unequivocally false. Starbucks is a publicly held company and as such, is required to disclose any corporate giving each year through a proxy statement. Has Starbucks ever sent any of its profits to the Israeli government and/or Israeli army? No. This is absolutely untrue. Is it true that Starbucks closed its stores in Israel for political reasons? No. We do not make business decisions based on political issues. We decided to dissolve our partnership in Israel in 2003 due to the on-going operational challenges that we experienced in that market. After many months of discussion with our partner we came to this amicable decision. While this was a difficult decision for both companies, we believe it remains the right decision for our businesses. Do you have plans to re-open should the opportunity arise? We decided to dissolve our partnership in Israel in 2003 due to the on-going operational challenges that we experienced in that market. When and where the business case makes sense and we see a fit for the Starbucks brand in a market we will work closely with a local partner to assess the feasibility of offering our brand to that community. We will therefore continue to assess all opportunities on this basis. At present, we will continue to grow our business in the Middle East as we have been very gratified by the strong reception of the brand in the region. We continue to work closely with our business partner, the Alshaya Group, in developing our plans for the region. Do you work with a Middle East partner to operate Starbucks stores? Through a licensing agreement with trading partner and licensee MH Alshaya WLL, a private Kuwait family business, Starbucks has operated in the Middle East since 1999. Today Alshaya Group, recognized as one of the leading and most influential retailing franchisees in the region, operates nearly 600 Starbucks stores in the Middle East and Levant region. In addition to its Starbucks stores, the Alshaya Group operates more than 2,600 retail stores in the Middle East, Russia and North Africa, providing jobs for more than 40,000 employees of more than 110 nationalities. We are extremely fortunate and proud to have forged a successful partnership for the past fifteen years and look forward to building on this success. In which Middle Eastern and North African countries do you operate? We partner with Alshaya Group to operate Starbucks stores in Bahrain, Egypt, Jordan, Kuwait, Lebanon, Morocco, Oman, Qatar, Saudi Arabia, Turkey and United Arab Emirates in the Middle East and North Africa region. We are fortunate to have the opportunity to work with so many communities, and we are committed to providing the Starbucks Experience while respecting the local customs and cultures of each country we are a part of. We are also committed to hiring locally, providing jobs to thousands of local citizens in the countries where we operate. This updates a statement originally posted to the Starbucks Newsroom in 2010, UPDATED August 2014