As of 2025, Starbucks Coffee does not operate officially in Pakistan. Despite widespread rumors and a growing local demand for international coffee brands, Starbucks has neither franchised nor licensed its brand within the country. Various unverified online sources and unauthorized cafés have used the Starbucks name locally, but these are not affiliated with Starbucks Corporation.
Trademark Issues in Pakistan
In 2018, a Pakistani restaurant chain, Options International, came under scrutiny for using the Starbucks brand name without permission. The Competition Commission of Pakistan (CCP) investigated the matter and issued a show-cause notice. By 2024, the Supreme Court upheld a fine of PKR 6 million against the restaurant, marking a significant step in trademark enforcement.
Despite this, several unverified websites such as starbucks1usa.com continue to promote fake franchise openings and location claims in cities like Lahore and Islamabad.
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Current Status of Starbucks in Pakistan
At present, no Starbucks outlet exists in Pakistan. The company has not granted any local licenses or franchise rights. Additionally, the Starbucks website does not list Pakistan among its operational or future markets.
Coffee Market in Pakistan
Pakistan’s coffee culture is steadily growing, particularly in urban areas. Major international brands like Gloria Jean’s, Coffee Bean & Tea Leaf, Second Cup, and Esquires Coffee have already established a foothold. Local roasters such as Coffee Planet, Raaz, and Red Berry Roasters are also thriving.
This growing interest is driven by a young, brand-conscious population, increasing urbanization, and a desire for high-quality coffee experiences.
Challenges for Starbucks Entry
Despite the market potential, Starbucks faces several challenges if it plans to enter Pakistan:
- Franchise Restrictions: The State Bank of Pakistan limits franchise fees to USD 100,000 and restricts royalty payments to 5% of net monthly sales.
- Economic Limitations: Pakistan’s average income per capita remains low, and premium pricing could limit Starbucks’ reach.
- Cultural Preferences: Tea is still the dominant hot beverage, though coffee consumption is rising in urban areas.
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Opportunities and Growth Potential
Starbucks could potentially succeed in Pakistan through a strategic partnership with a local franchise operator, similar to its Tata Starbucks joint venture in India. By localizing its offerings, adapting its pricing strategy, and focusing on Tier-1 cities like Karachi, Lahore, and Islamabad, Starbucks could establish a profitable presence.
Summary Table
| Area | Details |
|---|---|
| Official Presence | None |
| Trademark Cases | PKR 6M fine upheld by Supreme Court (2024) |
| Unofficial Cafés | Several unauthorized uses of brand |
| Local Competitors | Gloria Jean’s, Coffee Bean, Second Cup |
| Market Potential | High in urban centers with youth appeal |
| Regulatory Constraints | Franchise & royalty fee limits by SBP |
| Entry Strategy Suggestion | Joint venture with local franchisee |
| Product Adaptation Need | Yes – pricing, tea-based drinks, localization |
Conclusion
Starbucks has yet to make an official entry into the Pakistani market. While the demand for premium coffee is rising, regulatory and economic barriers remain significant. With proper adaptation and local partnership, however, Starbucks could unlock a promising new market segment in the years to come.Keep visiting: Bloom Pakistan
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