Starbucks’ China problem is actually getting worse

Despite adding almost 100 stores in China in its first quarter of FY25, Starbucks’ sales in the nation actually fell more than 5% from the quarter before, as the chain continues to struggle through its China dichotomy: opening new coffee shops does not mean making more money. In fact, the opposite is often the case.

The coffee giant not only welcomed fewer customers, as transactions fell 2% from the same quarter last year, but the patrons who visited Chinese branches were also spending less, with the average ticket size down 4%in the same period. 

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