Starbucks Has a Pumpkin Spice Latte Problem in China
www.nytimes.com
For years, Starbucks was the dominant coffee chain in China. Now rivals offering local flavors and cheaper prices are crushing the company’s bottom line in its second-largest market.

Good article from the New York Times.

Summary

Starbucks China is losing customers at a very rapid pace. Starbucks corporate executives are angry. Brian Niccol, the new $100 million CEO of Starbucks, sounded the alarm in October, calling the competition “extreme”. For the Chinese Lunar year, Starbucks released a pork flavor latte. It cost more than $9 and was widely seen as a disaster.

Billionaire Howard Schultz, Starbucks’s former CEO, insisted that Starbucks would not enter a price war in China. He claimed “as chinese customers become more knowledgeable about coffee, they will want to upgrade from lower-end or discounted products”

  • hark@lemmy.world
    3·
    5 days ago

    Billionaire Howard Schultz, Starbucks’s former CEO, insisted that Starbucks would not enter a price war in China. He claimed “as chinese customers become more knowledgeable about coffee, they will want to upgrade from lower-end or discounted products”

    They got more knowledgeable about coffee which is precisely why they’re choosing places other than starbucks.

    • NotJohnSmith@feddit.ukEnglish
      1·
      5 days ago

      I know right? The absolute balls on the guy - anyone that’s had a Starbucks knows that it’s that shit that you move on from. It’s not far removed from a McDonald’s milk shake.

      I’m hoping here (UK) and certainly continental Europe we see similar decline in their revenue, and other US companies that forget to pay tax