Is Starbucks leaving China?

The rumour about starbucks selling its operations in china has been going on for a while.

The following day, starbucks china responded that it is not planning on selling its china operations entirely but is evaluating.

It is the best way to seize future growth opportunities.

With goodme, a tea chain, also entering the coffee market, luckin and starbucks have both.

Invested in non-coffee products to diversify.

Despite a 5% increase in q1 fy2025, it had the same sales per branch and a 4% lower value-per-customer.

Luckin coffee, on the other hand, had a 41.2% growth in revenue in q1 2025 to 8.87 billion rmb (1.24 starbucks is not trying to sell off its china operation, rather it is looking to gain more investment in the market.

The shift to a fully franchised business model is worth continued monitoring.