Investing.com– Starbucks Corporation (NASDAQ:SBUX) is considering options for its China business, including a potential stake sale, as it attempts to revitalize sales and restore investor faith under new CEO Brian Niccol, Bloomberg reported on Thursday.
The coffee chain has been in talks with advisers over how to grow its Chinese business, including potentially introducing a local partner, Bloomberg reported. The company has drawn interest from several prospective investors, including local private equity firms.
China is Starbucks’ second-largest market after the U.S., although the company has faced heightened competition in the country over the past few years from other foreign entrants, as well as local offerings, most notably Luckin Coffee (OTC:LKNCY). Starbucks has lost a major market share in China to Luckin.
In addition to its China woes, the company has seen waning sales in the U.S., and is also grappling with unionization attempts by its baristas, amid calls for better wages and benefits.
To this end, the company had named Niccol, known for turning around Mexican restaurant chain Chipotle Mexican Grill Inc (NYSE:CMG), as its CEO earlier this year.