Starbucks China Ends Era of Co-CEO Leadership

According to information disclosed in an internal letter by Starbucks Chairman and CEO Brian Niccol this week, Molly Liu will transition from Co-CEO of Starbucks China to CEO of Starbucks China starting September 30. Belinda Wong, who previously served as Co-CEO and Chairman of Starbucks China, will continue to serve as Chairman of Starbucks China.

This is the first key change in the China region since Brian Niccol officially took the helm of Starbucks on September 9. Starbucks China stated that under the new structure, both Molly Liu and Belinda Wong will report directly to Brian Niccol. Under the new model, the division of labor between Liu and Wong will change: Liu, as CEO of Starbucks China, will be responsible for leading the company’s operations in the Chinese market, focusing on driving continuous growth of the business in China; Wong, as Chairman of Starbucks China, will focus on controlling the company’s future development strategy and innovation, enhancing the brand’s social impact.

“Since Starbucks’ fiscal year 2025 begins on October 1, 2024, this change also means that the company’s top management hopes to drive China’s business in the new fiscal year with a new structure,” said an unnamed insider quoted by Chinese media Huxiu.

Another insider revealed that Brian Niccol, during his time at Taco Bell and Chipotle, greatly valued quick responses to changes in market demand. As Starbucks’ second-largest market, Niccol hopes to refine operations in the Chinese market and respond more quickly to changes. “The new structure will also speed up the decision-making process in Starbucks China and promote the younger generation of the management team.”

An insider told Huxiu that with Molly Liu becoming the CEO of Starbucks China, she may further drive the overall efficiency of Starbucks China and focus on online orders and drive-thru stores. “On the one hand, it will further strengthen digital transformation, especially the company’s emphasis on data; on the other hand, the iteration speed of new products is expected to significantly accelerate, and more localized new products will be launched in the Chinese market.”

However, the challenges facing Molly Liu are immense. On the one hand, the price war triggered by Luckin and Cudi is deeply affecting consumer habits. This year, the price of some brands’ coffee products has already dropped from 9.9 yuan to 6.6 yuan. For essential coffee consumption, the competitiveness of a 30+ yuan per cup Americano will only further weaken.

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