Starbucks was once the undisputed king of coffee in China. Having opened its first branch in the country in 1999, the company used its first-mover advantage to build and dominate a thriving coffee scene. More than two decades on, it is no longer the only caffeinated beverage game in town. Time to pack up its beans and focus efforts elsewhere.
Local and other foreign chains such as Luckin and Cotti Coffee have caught up with the Seattle-based caffeine-peddler. Starbucks’ revenue from China stalled at about $3bn three years ago and has barely moved. Worse, its share of the country’s $22bn-a-year coffee market has fallen precipitously, from a peak of 42 per cent in 2017 to 14 per cent last year, despite investing heavily to more than double its store count.