Starbucks China appoints Tony Yang as first Chief Growth Officer amid market challenges 

CHINA – Starbucks China has reportedly named Tony Yang as its inaugural Chief Growth Officer, marking a strategic move to drive growth and outlet expansion in the company’s second-largest market. 

According to Chinese media outlet Late Post, Yang, who previously served as President of digital marketing firm Tezign, will oversee initiatives aimed at bolstering Starbucks’ position in China’s competitive coffee market.  

Yang’s extensive background includes senior marketing roles at Procter & Gamble, PepsiCo, and Alibaba Group, as well as a Senior Vice President role at global media agency VML. 

Yang’s appointment follows Starbucks’ decision to grant sole leadership of its China operations to Molly Liu earlier this year. Liu’s mandate is to rebuild sales and address a significant revenue decline for the division.  

In the fiscal year ending September 29, Starbucks reported a 14 percent drop in comparable store sales in China, with the average transaction price falling by 8 percent and same-store transactions decreasing by 6 percent. 

The Seattle-based coffee chain, which entered China in 1999, operates over 7,500 stores in the country.  

However, it has faced stiff competition from local rivals. Luckin Coffee surpassed Starbucks as China’s largest branded coffee chain by outlets in 2021, and Cotti Coffee overtook Starbucks in store count during the first half of 2024. Luckin and Cotti now operate over 20,000 and 10,000 stores in China, respectively. 

In October 2024, Starbucks CEO Brian Niccol emphasized the need for the company to adapt to the “dynamic” Chinese market, describing the competitive and macroeconomic environment as “extreme.

To navigate these challenges, Starbucks has reportedly engaged advisers to explore strategic options, including selling a stake in its Chinese business, partnering with a local master franchisee, or onboarding private equity investment. 

China remains a crucial market for Starbucks, which accounted for 7,596 stores across the country as of September 2024.  

According to World Coffee Portal’s Project Café East Asia 2024 report, China’s branded coffee shop market is projected to grow at a compound annual growth rate (CAGR) of 11.7 percent, reaching 86,370 outlets by the fourth quarter of 2028. 

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