Starbucks introduces smaller cup sizes in China with more espresso
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Starbucks Corporation (NASDAQ:SBUX) plans to adopt to local preferences in China by rolling out a new smaller cup size in China. The coffee chain giant introduced a 259 ml cup at 6,500 stores this week as part of a new range the company calls "Intenso Collection." The cup will have more espresso, but with less milk or cream, to make it more intense than the larger-cup styles preferred in the U.S. The new cup size will be priced at 33 yuan ($4.51). The 259 ml cup size is much smaller than Starbucks' regular sized cups, which include the tall (355 ml), grande (473 ml) and venti (592 ml) options.
The menu change for Starbucks (SBUX) in China comes as rivals such as Luckin Coffee (OTCPK:LKNCY) and ByteDance-backed Manner Coffee have been expanding aggressively and introducing new products at a faster pace. Starbucks (SBUX) is expected to test the response to the new cup size in Mainland China before considering if it should expand to another market.
China is Starbucks's (SBUX) second largest market and the company has a target to grow to 9,000 stores by 2025.
Starbucks (SBUX) is lined up to report earnings on November 2. On the same date, Starbucks (SBUX) also plans to host a Reinvention update and holiday launch at 4:00 p.m. Eastern time. The company said the event will include presentations by Laxman Narasimhan, chief executive officer, and members of the Starbucks executive leadership team, as well as a question and answer session.
Shares of Starbucks (SBUX) dipped 0.49% premarket on Wednesday to $93.72 and the coffee chain stock is down 6.60% on a year-to-date basis.

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