This photo shows an interior view of a Starbucks in the Golden Street commercial area in north China's Tianjin, Oct. 13, 2024. [Photo/Xinhua]

The Starbucks China Innovation and Technology Center (SITC) on Wednesday unveiled the digital achievements it has made since its establishment, underscoring the company's efforts to sharpen its edge in a fiercely competitive beverage market.

Launched in Futian District of south China's Shenzhen City on Aug. 18, 2023, with an initial investment of 220 million U.S. dollars, SITC has over the past two years taken charge of Starbucks China's core digitalization initiatives.

Over the period, SITC has helped Starbucks advance its digital transformation, delivering tangible results across its operations.

Marketwide, more than 7,800 branches have replaced paper menu boards with electronic upgrades. Starbucks has also introduced extensive customization options, including espresso type, extraction method, serving temperature, and milk or other bases, offering consumers at least 500 combinations of flavors and sweetness levels.

"Looking ahead, Starbucks, empowered by AI technology, will open up innovative opportunities for 'technology integrated with humanity' in more scenarios, expanding its unique advantages in stores, products and partners like never before, and creating richer new value for customers," said Luo Jinpeng, chief technology officer of Starbucks China.

Starbucks has deep roots in Shenzhen, where it opened its first store in south China in 2002. The company has since introduced a range of store concepts in the city, including pet-friendly, signing and greener stores. By April, Starbucks operated more than 360 stores in Shenzhen.

Coffee consumption has been on the rise nationwide in recent years. As of June 2025, Starbucks had 7,828 stores in the Chinese mainland -- up by 70 from the previous quarter.

Meanwhile, the market landscape is shifting rapidly, with domestic players such as Luckin and Cotti gaining traction with their high cost-effectiveness and fast turnover business models.

Shenzhen alone is home to nearly 10,000 coffee-related enterprises, ranking first among all Chinese cities, with a core urban density of 2.23 cafes per square kilometer, which also ranks highest nationwide.

In June, Starbucks announced price adjustments for a variety of non-coffee beverages, marking the company's first large-scale price reduction in China in 25 years.

Its digital push has coincided with a performance rebound. In the third fiscal quarter of this year, Starbucks China posted a net revenue of 790 million U.S. dollars -- up 8 percent year on year, marking a third consecutive quarter of growth.

Same-store sales -- a key measure of performance of stores that have been open at least 13 months -- rose 2 percent in the company's third fiscal quarter, turning positive for the first time in six quarters.

Earlier this month, Starbucks global CEO Brian Niccol reiterated that Starbucks is seeking suitable partners to bolster its business in China and capture opportunities to open as many as 20,000 to 30,000 stores in the future.

"We remain committed to our China business and want to retain a meaningful stake," he said.