BRIEF: Starbucks names new head for struggling China operation

SBUX.US

Starbucks China has adjusted its leadership in China, as it faces unprecedented competition from several aggressive startup rivals. The company said its China Co-CEO Molly Liu will take over as its lone CEO from Sept. 30, while former co-CEO Belinda Wong  will continue to serve as chairman of Starbucks China.

The change is one of the first major executive moves by Starbucks (SBUX.US) Chairman and CEO Brian Niccol , who only took the helm of the global coffee giant from Laxman Narasimhan at the start of this month.

Starbucks China is facing an unprecedented challenge from homegrown chains Luckin (LKNCY.US) and Cotti, which are charging just 9.9 yuan ($1.41) per cup of premium coffee. It also faces competition from the country’s proliferation of bubble tea shops that also sell premium beverages. Starbucks currently has 7,300 stores in China, making the country its second largest market after the U.S.

By Lau Chi Hang

To subscribe to Bamboo Works free weekly newsletter, click here

,
, , , ,

Related Articles

RELATED ARTICLES

No related posts.

Discover hidden China stock gems in our weekly newsletter

Follow us

Facebook Twitter Linkedin Weixin Weibo Youtube

Subscribe to Our Free eNewsletter

Subscribe

Check out our content with some of our syndication partners

factiva

Recent Articles

WeRide is enjoying a payoff from expanding its global taxi flee

Robotaxi rollout drives faster earnings pace at WeRide

The driverless technology company is enjoying a payoff from expanding its global taxi fleet, with quarterly revenues surging and losses continuing to shrink Key Takeaways: Third-quarter revenue more than doubled,…
0800.HK
WRD.US
Illustration of Luckin and Costa coffee being tasted

Luckin Coffee eyes global leap as China’s Double 11 loses its luster

Luckin could be preparing a bid for Costa Coffee. What's driving this potential deal, and what are its chances for success? And this year's Double 11 festival looks like a dud, with most big e-commerce companies failing to publish any big numbers. What does the future hold for this fast-fading shopping fest?