Starbucks’ determination to capture the attention of the Chinese consumer extended to offering a pork-flavoured latte in the country earlier this year. The limited edition drink is made of espresso, steamed milk and Dongpo braised pork flavour sauce topped with extra sauce and pork meat as garnish. Such product “innovation”, however, hasn’t cut it: operating in the country is no easy task, particularly given fierce local competition.
Starbucks had almost 7,600 outlets in China as of late September and the country accounts for about a fifth of the group’s global total. It is still expanding in China, increasing the number of its stores by more than a tenth in the latest financial year. Starbucks had a 14 per cent market share of China’s café market in 2022, according to the most recent available data.
That makes it an attractive target for Chinese groups, including domestic coffee chains. Starbucks, which is reported to be exploring options for its Chinese operations — including the possibility of selling a stake in the business — would also benefit from a helping hand from a local partner.