A spokesperson from Starbucks China has denied claims the business is considering a full sale of its China operations, following Chinese financial publication Caixin’s reports to the contrary.
Without disclosing where it obtained the information, Caixin reported Starbucks had held preliminary talks with more than 12 potential buyers but cited sources who did not specify what was for sale.
“I can confirm Starbucks is not currently considering a full sale of its China operations,” the company spokesperson said via Reuters.
It had previously been reported by Reuters that KKR & Co, Fountainvest Partners, and PAG were interested in acquiring a stake in Starbucks China, as the United States (US) coffee chain continued to fall behind local brands including Luckin Coffee in the market.
China is Starbucks’ second-largest market and is only behind the company’s home market of the US. Recently, it announced it would drop the price of some of its non-coffee drinks by an average of ¥5 (US$0.70) from 10 June.
It is the first ever price drop Starbucks has made in China, with some drinks now available for ¥23 (US$3.20).
Luckin Coffee’s rise as a more affordable option is said to have contributed to Starbucks’ reduced market share in the region, which has dropped from 34 per cent in 2019 to 14 per cent in 2024 according to Euromonitor International.
Some drinks on Luckin’s menu are priced below ¥10 (US$1.39), and the brand is reportedly positioning to follow in the footsteps of fellow Chinese brand Cotti in the opening of its first US store.
Luckin overtook Starbucks as China’s largest coffee chain in 2023 and its unaudited Q1 2025 report stated there were more than 24,000 Luckin venues in operation as of 31 March 2025 across China, Hong Kong, Singapore, and Malaysia.
Starbucks holds more than 7500 stores across more than 250 Chinese cities.
