Starbucks Uruguay cafes will open from early 2018 after the US coffee giant signed a licensing agreement with Alsea, a leading restaurant operator in Latin America and Spain.

The agreement grants Alsea the exclusive rights to develop and operate Starbucks stores in Uruguay, with the first store set to open in Montevideo. Starbucks and Alsea have worked together since 2002, now serving millions of customers in Mexico, Argentina, Chile, and Colombia in 841 Starbucks stores and employing more than 10,500 Starbucks employees. Uruguay will become the fifth market in this partnership, and Starbucks 18th market in the Latin America and Caribbean region.

Ricardo Rico, GM and VP for Starbucks Latin America, described Uruguay as a critical emerging market as the company continued its expansion across South America.

“As we position the brand for continued growth, Alsea continues to be an invaluable strategic partner in the region as we pursue disciplined and profitable growth in a way that celebrates local cultures and coffee traditions.”

Alsea has a diversified portfolio of fast food and restaurant brands, also including Domino’s Pizza, Burger King, Chili’s, California Pizza Kitchen, P.F. Chang’s, Italianni’s, The Cheesecake Factory, Vips, El Portón, Archie’s, Foster’s Hollywood, Lavaca and Cañas y Tapas. The company operates more than 3200 stores and has more than 67,000 employees in Mexico, Argentina, Chile, Colombia, Brazil and Spain. The new agreement with Starbucks also represents Alsea’s first foray into Uruguay, representing a critical business opportunity in a new South American market.