Starbucks intensifies Latin America growth with Drive-Thru expansion

Starbucks in Latin America is consolidating itself as a strategic pillar for the brand’s global growth. The region not only produces more than half of the coffee the company roasts and sells worldwide but is also central to its expansion strategy. 

With formats such as the Drive-Thru and a growing network of franchise partners, Starbucks aims to capture more consumption occasions while reinforcing its role as an ambassador of Latin American coffee to the world.

Coffee roots and farmer support

Latin America and the Caribbean provide around 600 million pounds (272 million kilos) of coffee each year, forming the base of Starbucks’ most iconic blends. “We see ourselves as true ambassadors of Latin American coffee around the world,” said Ricardo Arias-Nath, president of Starbucks Coffee Company for Latin America and the Caribbean, during the brand’s Leadership Conference (LE 2025) in Las Vegas.

To strengthen this link, Starbucks has established five Farmer Support Centers in Brazil, Colombia, Costa Rica, Guatemala and Mexico, out of a total of ten worldwide. These centers help improve seeds and production, reinforcing long-term sustainability in the region.

Franchise partners driving growth

Starbucks’ presence in Latin America is led by local franchise partners, with Alsea as the largest operator, managing 1,313 stores across Argentina, Chile, Colombia, Mexico, Paraguay and Uruguay. Other partners include Delosur in Bolivia, Zamp in Brazil with 114 stores, and Delonorte in Ecuador. Altogether, the brand operates more than 1,800 stores in the region.

Arias-Nath emphasized that Latin America already represents “a significant portion of international growth” and is expected to play an even larger role in the future.

Expanding formats: the rise of Drive-Thru

Beyond opening new cafés, Starbucks is diversifying its store formats to adapt to consumer demand. Currently, Drive-Thru outlets represent 20% of stores in the region. “Formats are very important, especially in more established markets,” said Arias-Nath, noting that traditional cafés will always remain the core representation of Starbucks as the “third place”,  a space between home and office.

In 2024 alone, the company opened 150 new stores in Latin America, maintaining a steady pace of expansion alongside its franchise partners.

A competitive coffee market

The coffeehouse business is becoming increasingly competitive in Latin America. According to Euromonitor, the coffee and tea specialty retail sector reached a market value of $3.16 billion in 2024 in the region, a 71.5% increase compared to 2019.

For Brady Brewer, CEO of Starbucks International, the challenge is to stand out in a crowded market. “We need to continuously show that we care about coffee, that we have the best coffee in the world and that we are the best at it,” he said during LE 2025.

The road ahead for Starbucks in Latin America

The company’s “Back to Starbucks” strategy, led globally by CEO Brian Niccol, is fueling greater investment in brand storytelling and media presence. For Starbucks Latin America, this means not only expanding its physical footprint but also reinforcing its identity as a leader in premium coffee.

“Latin America represents a tremendous growth opportunity for Starbucks,” Brewer concluded. “Telling our story here is a top priority.”