Starbucks China now requires a purchase to sit in its stores
Starbucks China now requires people to buy something before they sit in its stores, the BBC and Caixin reported. The rule took effect Thursday, the company said. The BBC said the chain faces stiff competition from local rivals such as Luckin Coffee.
Starbucks China now says people must buy something if they want to sit in its stores, according to the BBC and Caixin.
The rule took effect Thursday, the company said Wednesday, the BBC and Caixin reported. The BBC said it covers all of the chain's 8,000 stores in China. Caixin said stores will post notices that seats are for paying customers.
Starbucks China said the move is part of efforts to improve the "in-store experience," the BBC reported. Caixin said the chain is spending more than 300 million yuan, or about $45 million, to upgrade its stores as competition grows.
The chain faces stiff competition from local brands such as Luckin Coffee, the BBC reported. Luckin offers cheaper drinks and an app that favors grab-and-go orders, the BBC said. In 2023, Luckin passed Starbucks as China's largest coffee chain, according to the BBC.
China is Starbucks' second-largest market, the BBC reported. The company opened its first store there in 1999. Last year, Starbucks said it would sell a 60% stake in its China business to the investment firm Boyu Capital in a $4 billion deal, the BBC said.
Reports of the policy and videos of "purchase to sit" signs spread on social media before the announcement, the BBC reported. Many people online welcomed the rule, the BBC said. One top comment on Weibo, translated from Chinese by the BBC, said there would no longer be peak times when people sit without ordering.
Starbucks has made similar moves elsewhere, the BBC reported. In North America, it ended a policy that let people use seats and restrooms without buying anything. In South Korea, it asked customers to stop bringing "bulky items" into stores.
Starbucks China also said it plans to add staff and improve its digital systems, the BBC reported. It said the aim is to give "timely and warm service even during peak hours."
What we know: Starbucks China's purchase-to-sit rule took effect Thursday.
What we don't: How strictly stores will enforce it.
Where outlets agree The BBC and Caixin report that Starbucks China now requires a purchase to use seats in its stores and that the rule took effect Thursday.
Where they differ The cited reports agree on the key facts so far.