Summary
Starbucks is exploring the sale of a stake in its Chinese business to improve growth and address challenges in the market.
The company faces fierce competition from local coffee chains like Luckin Coffee and Cotti Coffee, which have outpaced it in store count and pricing strategies.
CEO Brian Niccol emphasizes finding strategic partnerships to revitalize Starbucks’ second-largest global market.
Starbucks Corporation is evaluating options to address challenges in its Chinese operations, including the potential sale of a stake in the business. According to sources close to the matter, the U.S. coffee giant has engaged advisers to assess interest from private equity firms and local partners. This move follows growing pressure from activist investors to streamline operations and secure long-term growth in the region.