Starbucks Blames Slower Chinese Growth On Third-Party Delivery Drop
Starbucks Corp. has reported a sudden slowdown in China growth just weeks after trumpeting rapid expansion in the country, citing a drop-off in unapproved third-party delivery services whose bulk orders had been clogging up its cafes.
The US cafe chain said on Tuesday same-store sales would be flat to slightly negative in its second-biggest market in April-June, versus 7% growth a year earlier. The announcement was followed by a 9% drop in Starbucks' share price.
Try European Supermarket Magazine PREMIUM – 30 Day FREE Trial.
A trial subscription gives unrestricted access to all premium site content, app content, weekly email content and European Supermarket Magazine digital edition for a full 30 days. Try it now!