By Savyata Mishra (Reuters) -Starbucks beat Wall Street estimates for third-quarter revenue on Tuesday, as steadying sales in China and investments in labor, store operations and menu innovation helped overcome pressures from slowing consumer spending in its domestic market.

The C.E.O., Brian Niccol, said the coffee chain’s turnaround is in progress, and sales in China increased for first time in more than a year.

The investments have added costs. Starbucks said its operating profit margin declined by 6.8 percentage points year on year to 9.9 per cent in the quarter that ended in June, driven in part by labour costs and a splashy conference for store managers last month.

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Starbucks (SBUX) is said to have introduced free “study rooms” at select locations in China, marking its latest effort to attract more customers amid intensifying domestic competition in its second-largest market.

The second "Taste of China" Global Specialty Green Coffee Bean Competition concluded on Sunday in Shanghai, showcasing the taste preferences of Chinese coffee consumers to the global market.

The rooms are Starbucks's latest initiative in China this year as it tries to revive sales growth amid stiff competition from cheaper local rivals like Luckin Coffee

This initiative come as Starbucks tries to revive sales growth amid stiff competition in China. Read more at straitstimes.com. Read more at straitstimes.com.

Starbucks Corp. has launched free “study rooms” in some of its China outlets, the company’s latest initiative to help boost consumer traffic as domestic competition surges in its second-biggest market.

The world’s biggest coffee chain said its same-store sales fell for the sixth consecutive quarter and that a decline in orders offset higher average ticket prices.