Starbucks, the U.S.-based coffeehouse chain headquartered in Seattle, Washington, clarified on June 24, 2025, that it is not currently considering a full sale of its China operations. This statement follows media reports claiming otherwise. Although the company has reportedly initiated a formal process to explore potential partnerships or stake sales, it has not yet decided whether it would part with a majority or minority stake. Starbucks is facing increasing competition from Chinese brands and rising consumer price sensitivity.
Seattle-headquartered coffee giant Starbucks has confirmed that it is not currently considering a full sale of its operations in China, countering reports from Chinese media that claimed otherwise. The clarification comes amid increasing speculation regarding the company’s strategic plans in one of its most important international markets.
The clarification followed a report by Chinese financial magazine Caixin, which claimed Starbucks had initiated talks with several buyers. While the company did not comment on the specifics of ongoing discussions, a spokesperson confirmed, “Starbucks is not currently considering a full sale of its China operations.”
According to sources familiar with the matter, Starbucks began a formal evaluation process in May 2025, reaching out to over 20 institutions, including private equity firms, to assess interest in its China unit. Advised by Goldman Sachs, the U.S. company sent potential partners a comprehensive questionnaire covering corporate culture, sustainability, management styles, treatment of employees, and proposed business plans.
While Starbucks has not made a final decision on whether to sell a controlling or minority stake, the process is said to be aimed at identifying the most compatible strategic partner. Certain parts of the business, such as Starbucks China’s supply chain, may be retained, sources indicated.
Starbucks operates a significant footprint in China, including the 1.5 billion yuan ($209 million) Coffee Innovation Park located in Kunshan, Jiangsu Province, near Shanghai. This state-of-the-art 80,000-square-meter roasting plant can supply all of Starbucks China’s stores.
However, Starbucks has been losing market share in China in recent years, dropping from 34% in 2019 to 14% in 2024, according to market data. The decline is attributed to increased competition from budget-friendly domestic brands like Luckin and Cotti, as well as aggressive subsidy campaigns by Chinese e-commerce platforms pushing instant retail models.
To address pricing pressures, Starbucks earlier this month reduced the price of several iced beverages in China by an average of 5 yuan—the first such move in its history in the Chinese market.
Starbucks is expected to announce the sh