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On 21 April 2016, Taste Holdings opened the doors of the first Starbucks in Joha...
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On 21 April 2016, Taste Holdings opened the doors of the first Starbucks in Johannesburg, bringing the full Starbucks experience to Rosebank. Taste Holdings, under an agreement with Starbucks, is a business franchise group holding the rights to own and open Starbucks stores in South Africa. This was not the end for Starbucks in South Africa. In 2019 Adrian Maizey, CEO of Rand Capital Coffee (RCC) bought the rights to own and operate Starbucks in South Africa. RCC bought the 12 stores for R7 million rand. After the acquisition, Rand Capital Coffee (RCC) inherited the 12 Starbucks stores, with plans to continue expanding the brand to roll out 30 new stores by March 2022. RCC planned to restructure the business model to include economies of scale, and to enter an agreement with Shoprite Checkers. This agreement extended Starbuck into regions and neighbourhoods that would have otherwise not been a viable business option. The change in strategy involves moving away from large store roll outs, and towards smaller kiosk-format locations, reaching more market segments. Despite the 2021 disruptions of the pandemic, the related lockdowns, looting, strikes, load- and water-shedding, RCC managed to open 41 additional stores in December 2022. Under RCC, a total of 54 stores were opened in 2022. Which one of the following options is an example of a market development strategy followed by RCC?
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