Starbucks Responds to Rumors of Selling China Business

On November 21, market news reported that Starbucks was considering the development of its China business, including the possibility of selling its business shares, and the company had informally assessed the interest of multiple potential investors, including local private equity firms in China.In response, a Starbucks spokesperson said that the company was committed to the development of its China business and the maintenance of partnerships. They were working hard to find the best development path, including exploring strategic partnerships.Just last month, Starbucks' new chairman and CEO Brian Niccol said he was trying to understand the company's China business, as the competition in the market environment is becoming increasingly fierce, Starbucks needs to figure out how to expand its market and explore strategic partnerships that are beneficial to its long-term development.Starbucks has 7596 stores in ChinaIn recent years, the domestic coffee market has become increasingly competitive. According to the data from the narrow door restaurant eye, as of November 12, the total number of coffee stores in the country has exceeded 200,000, with more than 70,000 new stores opened in the past year, a net increase of 18,000.From the financial data, Starbucks China's performance has declined this year.According to the fourth-quarter earnings report as of September 30, the net revenue of Starbucks China in the reporting period was US$783.7 million, up 6% from the previous quarter. However, in 2024, Starbucks China's revenue was US$2.958 billion, down 1.4% year-on-year.In terms of same-store sales, in 2024, Starbucks China's same-store sales decreased by 8% year-on-year, and the number of same-store transactions was flat year-on-year. Starbucks said that the average transaction value decreased by 8% year-on-year due to the frequent promotional environment.In terms of store numbers, in the fourth quarter, Starbucks China added 290 new stores. At the end of the reporting period, the total number of stores in China was 7,596, covering nearly 1,000 county markets.Regarding the subsequent development, Starbucks China CEO Liu Wenjuan said that the Chinese coffee market is undergoing profound changes, with frequent promotions and the entire industry under pressure, which has affected the company's same-store sales. However, they firmly maintain their confidence and commitment to the Chinese market and will continue to adhere to the long-term development concept.