Amid Fierce Competition And Declining Revenue, Starbucks Contemplates Selling Minority Stake In China Business – CoffeeTalk

Starbucks has received significant interest from investors in talks to acquire a stake or partner for its China business, according to CEO Brian Niccol. This is the company’s first admission that it is exploring the sale of a minority stake in its China unit. Starbucks first opened a cafe in China in 1999 and has since grown to 7,758, making it the second-biggest market for the U.S. coffee chain. The company’s revenue from China has fallen from $3.7 billion in 2021 to $3 billion in 2024, despite opening hundreds of new stores. The decline comes amid rising competition from lower-priced local brands and concerns about consumer spending in a slower economy. Starbucks has also cut prices on some of its beverages in China. The plan to offload a stake in the business is part of a business revival strategy under CEO Brian Niccol, who has eliminated over 1,000 jobs and is implementing a strategic overhaul that includes redesigning store layouts and integrating technology into barista workflows.

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