Overview
- Beginning June 10, Starbucks will cut prices on dozens of iced beverages by an average of 5 yuan, with some drinks dropping to as low as 23 yuan.
- The chain introduced smaller serving sizes and digital coupons earlier this year to reduce prices for budget-conscious consumers.
- Domestic rivals Luckin Coffee and Cotti offer cold drinks for under 10 yuan while JD.com and Alibaba have expanded food delivery services into China’s coffee market.
- A spokesperson said the timing of the cuts is designed to increase afternoon patronage rather than to engage directly in a price war.
- China represents Starbucks’ second-largest market after the US, and its performance there has been challenged by cautious consumer spending.