Starbucks Corp. is evaluating options for its Chinese operations, including the potential sale of a stake in the business. Sources indicate that the coffee chain has consulted advisers on ways to enhance its presence in China, potentially through a local partner.
Interest has been informally gauged from prospective investors, including domestic private equity firms. A stake sale could attract interest from Chinese conglomerates and local companies experienced in the industry.
Starbucks faces pressure from activist Elliott Investment Management to review its Chinese business. In the most recent financial year, China generated approximately $3 billion in net revenue for Starbucks, making it the company's second-largest market globally.
New CEO Brian Niccol acknowledged the challenging competitive environment in China, stating that the company is committed to finding the best growth path, which includes exploring strategic partnerships. As of late September, Starbucks operated 7,596 outlets in China, representing about 19% of its global total, though same-store sales fell 14% last quarter.