First look at Starbucks' Reserve Roastery in Shanghai

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It's the Starbucks Reserve Roastery Shanghai, a new installment of Starbucks's upscale Roastery concept that first opened in Seattle in 2014.

Starbucks has showcased its first overseas roastery and its world's largest store in Shanghai, as it expressed strong confidence in the growing Chinese market. There's also an on-site bakery with enough carbs from famed Italian baker Rocco Princi to keep you fueled as you explore Starbucks' first-ever augmented reality experience.

An augmented reality app is used in the new Starbucks Roastery in Shanghai, China.

"It's obvious to us that the holding power of China for Starbucks is going to be much more significant than the holding power of the U.S.", Schultz said Tuesday at a briefing to unveil the new cafe.

Wondering where that two-story, 40-ton copper cask came from?

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At the same time, revenue from Starbucks Asia-Pacific region represented close to 15% of the revenue for Starbucks during its fiscal year that ended during October.

The "Starbucks Reserve Roastery" is on Nanjing Road West, the city's most-famous shopping street, and has been hotly promoted for months on social media. In 2019, the company plans to open a Reserve Roastery in Chicago that will span 43,000 square feet.

Starbucks' new Shanghai store is 30,000 square feet.

In 2012, Starbucks China has operated the China Starbucks Farmer Support Center in Pu'er in the Yunnan Province, supplying agronomists to work in concert with government representatives and local farmers to improve quality and production through the region. The company has more than 3,000 stores across 136 cities in China. In July, Starbucks announced the closure of 379 Teavana outlets across the country.

But despite all of Shanghai Roastery's features, it's still a coffee shop at heart. Last quarter, China posted an 8 percent increase, compared with a 3 percent gain in the USA, excluding impacts from Hurricanes Harvey and Irma. That's up from 5.5 percent five years earlier.

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