KKR, Fountainvest and PAG Among Those Eyeing Starbucks China Stake, Sources Say
KKR & Co, Fountainvest Partners, and PAG are reportedly interested in acquiring a stake in Starbucks' operations in China as the coffee chain seeks to address declining sales in its second-largest market. This potential stake sale comes amid heightened competition from local brands like Luckin Coffee, which have been capturing market share with lower-priced offerings. Starbucks is exploring various strategic partnerships, including a potential franchisee model, to rejuvenate its presence in the challenging Chinese market.
- The interest from private equity firms highlights a broader trend of foreign brands reassessing their strategies in China, where local competitors are increasingly proficient at catering to consumer preferences.
- What implications would a franchisee model have on Starbucks' brand identity and operational autonomy in the Chinese market?