Latest news with #LuckinCoffee
Business Insider
2 hours ago
- Business
- Business Insider
Starbucks is taking a page out of competitors' playbooks to woo Chinese customers this summer
Starbucks is serving up cheap drinks in China this summer. Starting Tuesday, the coffee chain is lowering the prices of more than 20 drinks in its Frappuccino, iced shaken tea, and tea latte product lines, Starbucks representative Kok Kuan Tan told BI. He said the company hasn't determined an end date for the promotion. The chain said in a Monday post on Chinese social media site Weibo that prices will be brought down to as low as 23 yuan, or about $3.20, for the summer. Tan said Starbucks' grande drinks in the three lines will get cheaper by an average of 5 yuan. The move aims to offer "more accessible pricing" for a group of "popular non-coffee beverages," he said. Per checks by BI, the regular price of drinks in the three product lines in China ranges between 29 to 39 yuan. Starbucks had more than 7,700 stores in China as of March. The price cut comes as Starbucks China grapples with weakened consumer confidence and strong competition from local players. After the price reduction, Starbucks' offerings are closer in price to those of its biggest Chinese competitor, Luckin Coffee. Luckin Coffee, which had more than 24,000 outlets in China as of March, serves customers with aggressive discounts year-round. The non-discounted price of iced tea on Luckin Coffee's app was 26 yuan on Tuesday. But it cost 14 yuan after discounts. Luckin Coffee's iced lattes cost 32 yuan at the regular price and 19 yuan after the discounts. Starbucks is not the only Western brand betting on cheaper deals to lure Chinese consumers. Pizza Hut saw great success with its $7 pizza offering in China last year, with its sales increasing 50% in 2024 compared to the year before. Its parent company, Yum China, also reduced the price of 30 popular items in Pizza Hut, starting from 9.9 yuan for drinks and desserts. It introduced Pizza Hut Wow, the chain's budget wing, which serves smaller, cheaper versions of its regular fare. The summer deals come as Starbucks has seen slowing performance in China. In 2024, sales dropped 2%, to $3.01 billion, from the year earlier. Starbucks' CEO, Brian Niccol, told Bloomberg in February that the chain was eyeing a major expansion in China. "Today, we have over 7,000 stores. There will be many more thousands of stores in China in our future," he told Bloomberg.
The Independent
21 hours ago
- Business
- The Independent
Starbucks is cutting prices in China. Here's why
Starbucks is set to lower the prices of some iced drinks in China by an average of 5 yuan (51p), starting Tuesday. The company aims to offer more accessible prices on dozens of drinks, including non-coffee options and frappuccinos, with some drinks priced as low as 23 yuan (£2.36). This move comes as Starbucks faces intensifying competition and increased consumer caution in China, its second-largest market. Domestic rivals like Luckin Coffee and Cotti have priced drinks as low as 9.9 yuan (£1) or even 8.8 yuan (90p). According to a source close to Starbucks, the company is not reducing prices due to competition but to attract more afternoon customers.
Yahoo
a day ago
- Business
- Yahoo
Coffee wars heat up in China as Starbucks slashes prices
Starbucks is set to lower the prices of some of its iced drinks in China by an average of 5 yuan ($0.70), the company announced on Monday. The US coffee chain said in a post on its Weixin social media account that it would offer more "accessible" prices on dozens of its drinks, including non-coffee drinks and the Frappuccino, from Tuesday. Some drinks will be priced as low as 23 yuan, the post said. The move comes as competition intensifies and consumers become more cautious about spending in China, Starbucks' second-largest market after the US. Domestic rivals such as Luckin Coffee and Cotti have priced their drinks as low as 9.9 or even 8.8 yuan, while internet companies and Alibaba Group have entered the food delivery market, adding to the competition. With offers and vouchers, Chinese coffee consumers can buy themselves a drink for as little as 2.9 yuan. A person close to Starbucks, said the company was not reducing prices in response to intense price competition, but looking to attract more customers in the afternoon. The individual requested anonymity as they were not in a role that allowed them to comment to the media. "Starbucks likely has a longer-term strategy, which is to focus on the demand for non-coffee items in the afternoon among consumers," the source said. Starbucks had said previously that it would not engage in a price war. However, it has also introduced smaller-sized drinks and issued coupons which have lowered prices for customers. The US giant has also been looking to revive its business in China via selling stakes in the business.
Yahoo
a day ago
- Business
- Yahoo
Coffee wars heat up in China as Starbucks slashes prices
Starbucks is set to lower the prices of some of its iced drinks in China by an average of 5 yuan ($0.70), the company announced on Monday. The US coffee chain said in a post on its Weixin social media account that it would offer more "accessible" prices on dozens of its drinks, including non-coffee drinks and the Frappuccino, from Tuesday. Some drinks will be priced as low as 23 yuan, the post said. The move comes as competition intensifies and consumers become more cautious about spending in China, Starbucks' second-largest market after the US. Domestic rivals such as Luckin Coffee and Cotti have priced their drinks as low as 9.9 or even 8.8 yuan, while internet companies and Alibaba Group have entered the food delivery market, adding to the competition. With offers and vouchers, Chinese coffee consumers can buy themselves a drink for as little as 2.9 yuan. A person close to Starbucks, said the company was not reducing prices in response to intense price competition, but looking to attract more customers in the afternoon. The individual requested anonymity as they were not in a role that allowed them to comment to the media. "Starbucks likely has a longer-term strategy, which is to focus on the demand for non-coffee items in the afternoon among consumers," the source said. Starbucks had said previously that it would not engage in a price war. However, it has also introduced smaller-sized drinks and issued coupons which have lowered prices for customers. The US giant has also been looking to revive its business in China via selling stakes in the business.
Free Malaysia Today
a day ago
- Business
- Free Malaysia Today
Starbucks to lower prices in China as competition heats up
China is Starbucks' second-largest market after the US. (EPA Images pic) BEIJING : Starbucks China will lower the prices of some of its iced drinks by an average of ¥5 (US$0.70) across the country, the company announced today, as competition intensifies and consumers become more cautious about spending. In a post on its Weixin social media account, the US coffee chain said it would offer more 'accessible' prices on dozens of its drinks, including non-coffee drinks and the Frappuccino, from tomorrow. While China is Starbucks' second-largest market after the US, the coffee market is highly competitive, and consumers have become more cautious about spending because of the slowing economy and concerns about job security. The new approach means some of Starbucks' drinks will be priced as low as ¥23, the post said. Domestic rivals such as Luckin Coffee and Cotti have priced their drinks as low as ¥9.9 or even ¥8.8, while deep-pocketed internet companies and Alibaba Group have entered the food delivery market, adding to the competition. With offers and vouchers, Chinese coffee consumers can buy themselves a drink for as little as ¥2.9. A person close to Starbucks, said the company was not reducing prices in response to intense price competition, but looking to attract more customers in the afternoon. The individual requested anonymity as they were not in a role that allowed them to comment to the media. 'Starbucks likely has a longer-term strategy, which is to focus on the demand for non-coffee items in the afternoon among consumers,' the source said. Starbucks had said previously that it would not engage in a price war. However, it has also introduced smaller-sized drinks and issued coupons which have lowered prices for customers. The US giant has also been looking to revive its business in China via selling stakes in the business.
