Starbucks China is lowering prices on popular non-coffee drinks like Frappuccinos, Iced Shaken Teas, and Tea Lattes by about 5 yuan (around $0.70) starting June 10.
Some drinks will cost as low as 23 yuan, matching the price range of popular milk tea brands such as HeyTea and Naixue.
This move comes as Starbucks aims to attract more customers in China’s growing tea market, which is larger than its coffee market. By offering more affordable tea-based drinks, Starbucks hopes to win over consumers who favor milk tea’s sweet and social appeal, especially in lower-tier cities.
Starbucks’ new pricing strategy targets afternoon and evening consumers, hoping to boost foot traffic during these hours with a “morning coffee, afternoon tea” model.
With nearly 7,800 stores across China, Starbucks is positioning itself to challenge established tea brands and capture a bigger share of the market.
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