Starbucks will reduce the prices of several drinks in China, in the context in which the cafe chain is facing fierce competition on its second largest market, notes FT. The company from Seattle announced on Monday, in a post on social networks, that it will lower the prices of products such as latte teas and frappuccinos with an average of 5 yuan (RMB), bringing the cost of certain drinks at 23 RMB (about $ 3.20). Companies in China consumption sectors, from cars to food and drinks, are under increasing pressure to reduce prices, against the backdrop of intense competition. Starbucks has an important presence in China, with over 7,685 locations at the end of last year. The company continued its expansion in continental China, adding a record number of new net cafes in September 2024 and opening its own coffee frying factory in Kunshan. Starbucks plans for extension in continental China have been put under pressure by cheaper local alternatives. For example, the Manner Coffee chain in Shanghai perceives 15 RMB for a 355 ml American, and Luckin Coffee perceives 14 RMB for a 473 ml American compared to a 355 ml American at a Shanghai Starbucks.
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