Core Insights - Starbucks is facing significant challenges in China, with comparable store sales down 14% in the most recent quarter, highlighting the volatility in its sales performance over the past five years [1][3][11] - The company has over 7,300 stores in China, making it its second-largest market after the US, with a target of reaching 9,000 stores by 2025 [1][12] Sales Performance - Comparable store sales have been negative for the last two quarters, with both the transaction count and average ticket size down 7% year-over-year [3][12] - The average ticket size has been declining steadily over the past two years, indicating a shift in consumer spending behavior [3][12] Competition Landscape - The coffee shop sector in China is experiencing intense competition, with Luckin Coffee being Starbucks' biggest rival, boasting over 20,000 stores compared to Starbucks' 7,300 [5][6] - Other competitors include Cotti Coffee, McDonald's McCafe, and KFC's KCoffee, contributing to a challenging market environment for Starbucks [6] Consumer Preferences - Many Chinese consumers prioritize product over experience when visiting coffee shops, which contrasts with Starbucks' consumer-centric approach [7] - Luckin Coffee's rapid product innovation and focus on local flavors have made it more appealing to Chinese consumers, particularly with popular offerings like sweet and milky beverages [7][8] Strategic Positioning - Starbucks aims to maintain its premium positioning in China, targeting middle-class consumers, particularly white-collar professionals, with prices ranging from 30 to 40 yuan ($4.20 to $5.60) for a 16-ounce drink [9] - Despite this strategy, Starbucks has increased its use of discounting to compete with local rivals, which has led to lower average check sizes [9] Economic Context - China's economic growth has slowed to 4.7% year-over-year in the second quarter of 2024, contributing to cautious consumer spending [11] - The current economic climate presents challenges for all players in the market, including Luckin Coffee, which has also reported a decline in same-store sales [11] Future Outlook - Starbucks remains optimistic about its long-term strategy in China, focusing on locally relevant products and expanding into smaller cities [12] - The company added over 800 new stores in the year leading up to June 30, indicating a commitment to growth despite current challenges [12]

By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . You can opt-out at any time by visiting our Preferences page or by clicking "unsubscribe" at the bottom of the email.Access your favorite topics in a personalized feed while you're on the go. download the appThanks for signing up! Go to newsletter preferencesSign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read previewAnother longtime Tesla worker has quit, as Elon Musk's c ...

By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . You can opt-out at any time by visiting our Preferences page or by clicking "unsubscribe" at the bottom of the email.Access your favorite topics in a personalized feed while you're on the go. download the appSign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read previewThe Paris Olympics was a big hit for Comcast and NBC: Viewers loved the games, advertisers paid big money t ...

By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . You can opt-out at any time by visiting our Preferences page or by clicking "unsubscribe" at the bottom of the email.Access your favorite topics in a personalized feed while you're on the go. download the appThanks for signing up! Go to newsletter preferencesSign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read previewTarget just pulled off a much-needed win.Faced with a ye ...

By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . You can opt-out at any time by visiting our Preferences page or by clicking "unsubscribe" at the bottom of the email.Access your favorite topics in a personalized feed while you're on the go. download the appThanks for signing up! Go to newsletter preferencesSign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read previewFord has changed its electric vehicle strategy again, ca ...

The FAA has ordered hundreds of Boeing 787 Dreamliners to undergo inspections.It comes after a Latam Airlines jet suddenly dropped 400 feet in March, injuring dozens.Investigators found the captain's seat, which had a loose switch cover, involuntarily moved forward. Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read preview Thanks for signing up! Go to newsletter preferences Thanks for signing up! Access your favorite topics in a perso ...

By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . You can opt-out at any time by visiting our Preferences page or by clicking "unsubscribe" at the bottom of the email.Access your favorite topics in a personalized feed while you're on the go. download the appThanks for signing up! Go to newsletter preferencesSign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read previewFirst, these new injectable drugs were meant to treat di ...

Boeing has paused flight tests for its much-anticipated 777X widebody jet.A problem was discovered in the structure that connects the engine to the plane.The 777X is already years behind schedule, and the problem adds another challenge for Boeing's new CEO. Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read preview Thanks for signing up! Go to newsletter preferences Thanks for signing up! Access your favorite topics in a personalized f ...

By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . You can opt-out at any time by visiting our Preferences page or by clicking "unsubscribe" at the bottom of the email.Access your favorite topics in a personalized feed while you're on the go. download the appThanks for signing up! Go to newsletter preferencesSign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read previewDuring July's earnings call, Meta CEO Mark Zuckerberg la ...

By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . You can opt-out at any time by visiting our Preferences page or by clicking "unsubscribe" at the bottom of the email.Access your favorite topics in a personalized feed while you're on the go. download the appThanks for signing up! Go to newsletter preferencesSign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read previewBy nearly every measure, the war on inflation is over.Wh ...