Starbucks China will require purchases to sit in its cafes
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Starbucks is trying to make its cafes more appealing while battling intensifying competition in China.
PHOTO: REUTERS
- Starbucks China will require a purchase to sit in its cafes from Oct 22, as it tries to improve the in-store experience and keep paying customers.
- The company plans more investment in fiscal 2027, including extra staff, better digital systems, upgraded equipment and about 1,000 store renovations.
- The move comes as Starbucks faces fierce competition in China, falling sales and pressure from cheaper rivals like Luckin Coffee, with a US$4 billion (S$5.11 billion) Boyu Capital deal set to reshape its business.
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BEIJING - Starbucks will require customers to make a purchase to sit in its China cafes, part of a push to revive its fortunes in the competitive mainland market.
The new seating policy will take effect nationwide from Oct 22, with stores displaying notices informing customers of the change, Starbucks China said on Oct 21.
“We will continue investing resources to improve the in-store experience, and work together with customers to create and maintain a welcoming third-place experience,” the company said in a statement.
Starbucks China also plans additional investment in fiscal 2027, including adding staff during peak hours, upgrading digital systems and core equipment, and renovating about 1,000 mainland outlets, according to a separate statement on WeChat.
The changes come as Starbucks tries to make its cafes more appealing while battling intensifying competition in China.
The chain agreed in November 2025 to sell a majority stake in its China business to private equity firm Boyu Capital at a US$4 billion (S$5.11 billion) enterprise value, bringing in a local partner to help chart its next phase of growth.
Starbucks China posted comparable-store sales declines in each of the past two fiscal years, weighed down by fierce competition and price wars.
Sales showed signs of recovery earlier this fiscal year, though the business has yet to demonstrate a sustained return to growth as it transitions to its new ownership structure.
Starbucks stopped separately disclosing China’s performance from the third quarter ended in June.
The seating change echoes a move in 2025 by Starbucks in the US, where the company reversed a policy allowing anyone – even those who had not purchased food or drinks – to use its cafes, patios and restrooms.
Starbucks said the change was intended to prioritise paying customers and introduced a new code of conduct as part of Chief Executive Officer Brian Niccol’s effort to make its stores more appealing.
Starbucks has about 8,000 stores in China after first opening in Beijing in 1999.
But its position has come under pressure in recent years as cheaper local rivals including Luckin Coffee have expanded rapidly and consumers have become more reluctant to pay a premium for foreign brands.
Luckin dethroned Starbucks as China’s biggest coffee chain three years ago, helped by drinks that cost a fraction of the price.
Starbucks’ bigger, more expensive store format has also come under pressure as customers grow increasingly cautious about discretionary spending amid China’s economic slowdown. BLOOMBERG