According to the star board daily on November 21 (reporter Xu Cihao), the development of starbucks' business in china has become unclear.

According to media reports, starbucks is discussing with advisors how to develop its business in china, including the sale of business shares and the introduction of local partners, and is informally assessing the interest of potential investors, including domestic private equity firms.

Reports cite sources saying that the sale of starbucks' shares in china may attract the interest of many companies and investors.

Starbucks in china quoted a global spokesperson in response that the company is taking time to gain a deeper understanding of its business operation and the market competitive environment in china.

"We are wholeheartedly committed to our china business, our partners (employees), and the long-term development in the chinese market. As mentioned in the fourth quarter earnings conference call, we are working hard to find the best growth paths, which include exploring strategic partnerships."

Recently, starbucks disclosed its fourth quarter earnings report for fiscal year 2024, in which starbucks' revenue in china was 0.7837 billion USD (approximately 5.576 billion RMB), a year-on-year decrease of 7%. Same-store sales fell by 14%, down from a 5% increase in the same period last year; transaction volume and average ticket price decreased by 6% and 8%, respectively, compared to an 8% increase and a 3% decrease in the same period last year.

Regarding the further decline in multiple key indicators for starbucks in china, "intensified competition and a weak macro environment have affected consumer spending," said starbucks chief financial officer Rachel Ruggeri at the latest earnings conference. During the season, although the number of active memberships in the star club in china reached a record high of 23.5 million, a net increase of 2.2 million year-on-year, pressures from non-member traffic, increased discounts due to aggressive promotions, and cautious consumer sentiment led to a decline in same-store sales.

As the new chairman and chief executive officer, Brian Niccol stated at the earnings conference that more time is needed to better understand the china market and operations. "The competitive environment is very intense, and the macro environment is quite severe, so we need to think clearly about how to achieve growth now and in the future."

He also revealed that in china, starbucks will continue to explore strategic partnerships to support long-term growth.

It is worth mentioning that the exploration of strategic partnerships in china was initially proposed by starbucks' former CEO Kevin Johnson.

During the fiscal year 2024 third-quarter earnings conference (ending in June 2024), Johnson first proposed exploring strategic partnerships in china.

At that time, Johnson stated that starbucks sees higher growth and profit opportunities in china, and the company is building a new generation of starbucks, focusing on high-end branding, and conducting more digital, innovative, and localized business.

"To achieve this goal, as the strategy evolves, we are in the early stages of exploring strategic partnerships to further enhance our competitive position, accelerate growth and innovation, and achieve long-term success in china," Johnson said.

Notably, during the earnings call for that quarter, an analyst sought to obtain more details on this and stated, "The board of directors has evaluated options, such as franchising in china, mimicking the practices of other multinational dining chains, which would allow you to capture growth dividends while alleviating volatility and capital pressure."

In recent years, mcdonald's and yum brands have already expanded their operations in china and sold shares to private equity firms to achieve more growth and better cater to local tastes. Starbuck seems to also be facing scrutiny regarding its business in china.

In response, Nasdaq stated that 25 years ago, Starbucks created a professional coffee industry in China and explored entrepreneurship in technology, real estate, and supply chain through joint ventures and strategic partnerships.