Faced with boycott activity that is squeezing its business, popular coffee chain Starbucks is considering selling part of its China business unit, according to sources.
The company is exploring various ways to strengthen its presence in the Chinese market, including partnering with local firms.
While no final decisions have been made, Starbucks has shown interest in working with potential investors, such as Chinese private equity firms and local businesses with industry experience.
China is Starbucks’ second-largest market, contributing about $3 billion in revenue last year.
The coffee giant has also increased its store count in China by 12% over the same period.
However, competition is tough, with local brands such as Luckin Coffee challenging Starbucks’ position.
New CEO Brian Niccol has expressed his commitment to understanding and expanding the company’s China operations.
He intends to improve Starbucks’ physical locations and accelerate service as part of efforts to adapt to the challenging market and find a long-term growth strategy.
Starbucks shares have risen slightly this year, and the company remains optimistic about its future.
With more than 7,500 stores in China, its approach to this critical market could have a significant impact on its global operations.
