Overview
- Starbucks closed a joint venture that gives Boyu-managed funds 60% of its China retail business, with Starbucks keeping 40% and licensing its brand and intellectual property.
- The venture now oversees about 8,000 stores in China with a longer-term plan to grow to 20,000 locations.
- In the U.S., the company introduced weekly pay, mobile tipping and scan-to-pay tips, plus a store bonus of up to $1,200 a year for baristas and shift supervisors when targets are met.
- At unionized stores, Starbucks said the changes will be subject to collective bargaining, and Starbucks Workers United criticized tying extra pay to manager-set metrics and customer behavior.
- China remains a tough market for coffee, with average consumption at about three cups per person per year and lower-priced rivals like Luckin Coffee and Cotti pressuring Starbucks.