Starbucks Cuts Iced Drink Prices in China to Boost Afternoon Sales

Starbucks (NASDAQ:SBUX) announced it will lower prices for select iced beverages in China by an average of 5 yuan ($0.70), starting Tuesday. The move comes as the U.S. coffee giant seeks to attract more customers during the afternoon hours and enhance its daily service appeal.

The price cut was revealed through the company’s official post on Weixin, a popular Chinese social media platform, on Monday. Starbucks said the initiative aims to offer more "accessible" pricing on popular cold drinks to better align with shifting consumer habits and drive sales beyond the morning rush.

With increased competition in China’s fast-growing coffee market, the price adjustment signals Starbucks’ strategy to defend its market share against domestic rivals and low-cost alternatives. By focusing on affordability and expanding its reach during off-peak hours, the company hopes to strengthen its brand presence and boost foot traffic.

Starbucks has been actively investing in its China operations, which are considered a key growth driver. The company continues to open new stores across major cities and smaller regions while experimenting with menu innovation and digital engagement strategies.

This latest pricing strategy comes amid broader efforts to adapt to China’s evolving consumer landscape, where value-driven choices and convenience increasingly influence purchasing decisions. By targeting the afternoon segment with reduced prices, Starbucks aims to capture a larger share of daily coffee consumption.

The company did not specify which iced drinks will be included in the price drop, but emphasized the change will enhance customer value and support long-term loyalty. As competition intensifies, particularly from local chains and convenience stores, Starbucks’ focus on accessibility and affordability marks a notable shift in its China market playbook.