The next price war, on coffee. $LKNCY (+2 %) has reduced the price floor from 9.9RMB to 5.9RMB. Now when your coffee costs 30RMB and isn't much better, that's going to hurt. Plus you're lagging behind on selection and you've already lost your flair.
Starbucks won't have it any easier in China. Should actually be a growth market for them...