Overview

• More than 20 investors, including KKR & Co., FountainVest Partners and PAG, have submitted proposals for minority or controlling stakes in Starbucks’ China business.
• China revenue has slid from $3.7 billion in 2021 to $3 billion in 2023, with market share plunging to 14% in 2024 from 34% in 2019.
• The firm rolled out its first-ever price reduction in the Chinese market this month, cutting select non-coffee iced drinks by about five yuan.
• A global overhaul has already eliminated over 1,000 jobs and introduced store redesigns and technology upgrades aimed at speeding service.
• Domestic chains Luckin Coffee and Cotti have undercut Starbucks by charging below five yuan per cup, intensifying pricing pressure.