Buyer beware: Who will acquire Starbucks China?

What happened Speculation is mounting over a potential sale of Starbucks’ China operations, as domestic brands like Luckin Coffee, Mixue Bingcheng, and Cotti Coffee are taking over the country’s coffee market with affordable prices, rapid expansion, and tech-first models. According to reports, Starbucks has received several acquisition offers for its China unit, valued at up to $10 billion, with the U.S. company expected to retain a 30% stake to maintain strategic influence. One of the most talked-about bidders is Centurium Capital, the largest shareholder in Luckin Coffee — China’s largest coffee chain by store count. Centurium owns a 32% equity stake and holds over 50% of Luckin’s voting rights. If successful, the deal would see Luckin’s backer partially acquire its biggest competitor, raising concerns about market concentration and potential antitrust reviews. Starbucks and Centurium have yet to comment publicly on the rumors. In June 2025, Starbucks announced it would reduce the prices of various iced beverages in China by an average of 5 RMB ($0.70). Similarly, in summer 2024, Starbucks China cut prices on three major non-coffee categories: Frappuccinos, iced shaken teas, and tea lattes. It was the brand’s first major price drop in China in 25 years, bringing many of these drinks below the 20 RMB ($2.79) mark for the first time, a move that would have been unheard of only years before. The Jing Take Starbucks’ struggles in China reflect the nation’s fast-changing food and beverage landscape. The American coffee chain saw its China same store sales decline 6% in Q1. This followed $3 billion in revenue in 2024, a 1.4% drop year-on-year. Meanwhile, China’s domestic coffee and tea chains are rapidly scaling up, capturing younger price-sensitive consumers with aggressive promotions and mobile-first convenience. Cotti Coffee, founded by Luckin’s former executives, aims to open 50,000 stores by the end of 2025. Mixue, known for its 6 RMB ($0.82) lattes and sugar-loaded teas, has transformed into a global phenomenon with its cheerful, budget-friendly aesthetic. As of September 2024, Starbucks had 7,596 stores in China, making it the company’s second-largest market after the U.S. and accounting for 19% of its global footprint. But the Seattle-based chain is under growing pressure. Luckin now operates over 24,000 stores, offering innovative drinks and lower prices via an app-only model. Mixue, a low-cost tea and coffee brand, recently surpassed McDonald’s in store count worldwide with over 46,000 locations. Meanwhile, Luckin is also eyeing Starbucks’ home market. In July, it opened two stores in New York City, bringing its affordable, flavor-forward model to U.S. consumers. The brand’s $4.7 billion in global revenue in 2024, up 38.4% year-on-year, demonstrates its rapid comeback after a 2020 fraud scandal, which resulted in its delisting at the time. If Starbucks does relinquish control in China, the move would mark a turning point in the global coffee wars. International dominance may now depend on adapting to local models rather than exporting the Starbucks café culture that once defined the brand. Additional research by William Zhou. The Jing Take reports on a piece of the leading news and presents our editorial team’s analysis of the key implications for the luxury industry. In the recurring column, we analyze everything from product drops and mergers to heated debate sprouting on Chinese social media.

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Buyer beware: Who will acquire Starbucks China?