No order, no seat: Starbucks China makes buying mandatory
What's the story
Starbucks has introduced a new policy in China, making it mandatory for customers to make a purchase if they want to use the seating area. The change comes as part of the company's efforts to improve customer experience in its stores. The move is also seen as a response to growing competition from local brands like Luckin Coffee.
Public opinion
Policy well-received on Chinese social media
The new policy has been met with a positive response from many Chinese social media users.
One Weibo user said, "Finally, there won't be peak periods where people are just sitting there not ordering anything."
Another user echoed similar sentiments, saying they would feel awkward sitting without making a purchase and would prefer leaving seats for those who have.
International issues
Global issues Starbucks has been facing
Starbucks stores worldwide have been dealing with problems like seat-hogging and other disruptive behavior.
In a recent incident, a Starbucks store in Sichuan province was seen with chained-up outdoor seats and tables to prevent people from sitting without paying.
Meanwhile, in South Korea, the company had to ask customers not to bring "bulky items" into their stores as some were hogging seats with printers and desktop computers.
Market strategy
Luckin Coffee overtakes Starbucks as China's largest coffee chain
Since its first store opened in 1999, China has become Starbucks's second-largest market.
However, the company has been facing stiff competition from local brands like Luckin Coffee, which offer cheaper products and a robust app-based ordering system.
In 2023, Luckin overtook Starbucks as China's largest coffee chain.
Amid these challenges, Starbucks announced last year that it would sell a 60% stake of its business in China to investment firm Boyu Capital as part of a $4 billion deal.