Starbucks ($SBUX) is facing intense competition in China, where it has been dragged into a price war despite efforts to avoid discounting. Rivals such as Luckin Coffee have surpassed Starbucks in sales, prompting the coffee giant to offer more discounts on its popular drinks. The competitive landscape has been further complicated by upstarts like Cotti, which have ignited a price war by offering weekly coupons for 9.9 yuan coffees. This situation has forced Starbucks to focus on store operations improvements as part of its capital expenditure (CAPEX) plan. Additionally, Starbucks is set to resume union negotiations as it confronts issues at its stores.
Starbucks remains popular in China, where consumers drink both premium brands and low-cost alternatives. Among affordable chains, however, Luckin is mired in a discounting war with Cotti, offering weekly coupons for 9.9 yuan coffees. https://t.co/E35YayhGiQ
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$SBUX working on store ops improvements as part of CAPEX plan RT: Starbucks is set to resume union negotiations as it confronts issues at its stores https://t.co/Ycplpfaej5
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$SBUX In China, Starbucks tries to avoid price war but gets dragged into discounting Reuters
Starbucks faces intense competition and a price war in China, as rivals like Luckin Coffee surpass its sales. https://t.co/fqi3REawGB
In China, Starbucks Tries to Avoid Price War but Gets Dragged into Discounting https://t.co/OYgflHEWqq
In China, Starbucks tries to avoid price war but gets dragged into discounting https://t.co/Q6y4pJXH0P https://t.co/8mG7PJCpNo
⚠️ ANALYSIS-IN CHINA, STARBUCKS TRIES TO AVOID PRICE WAR BUT GETS DRAGGED INTO DISCOUNTING Full Story → https://t.co/9HpqdIWqKG