Starbucks China requires purchase for seating under new policy AI-generated image

Starbucks China requires purchase for seating under new policy

Newsora24 staff
2 minRead

Customers at Starbucks stores in China will need to buy something before they can sit down, under a new policy that takes effect on Thursday across all 8,000 of the company’s stores in the country.

Starbucks China said the change is part of efforts to improve the “in-store experience” for customers. The company faces stiff competition from local brands such as Luckin Coffee. Reports of the policy circulated this week, along with social media videos showing what appear to be “purchase to sit” signs in its stores.

Competition from Luckin shapes the new seating rule

China has been Starbucks’ second-largest market since the company opened its first store there in 1999. In recent years, however, it has faced pressure from Luckin and other local brands that offer cheaper products.

Luckin also runs a strong app-based ordering system that prioritises grab-and-go transactions. That approach challenges Starbucks’ model of a full cafe experience, where people sit down to enjoy their food and drinks. In 2023, Luckin overtook Starbucks as China’s largest coffee chain.

Chinese social media users welcome the purchase requirement

Many people on Chinese social media welcomed the new policy. One of the top-liked comments on Weibo said there would no longer be peak periods when people sat without ordering anything, while another said there was nowhere to sit whenever the commenter walked into a store.

Another Weibo user said there was nothing wrong with the rule and that they would rather leave seats for customers who had made purchases and needed them.

Seating curbs and investment plans at Starbucks

Starbucks stores around the world have been dealing with non-paying visitors and other undesirable customer behaviour. Last month, a store in Sichuan province drew debate after video showed its outdoor seats and tables chained up, an apparent attempt to stop people sitting there without paying.

In South Korea, Starbucks has told customers to stop bringing “bulky items” into its stores. In North America, the company reversed an open-door policy that had let people use seats and toilets without buying anything, saying it wanted to “prioritise” paying customers.

Starbucks said last year it would sell a 60% stake in its China business as part of a $4bn (£3.04bn) deal with investment firm Boyu Capital. In a separate statement on Wednesday, Starbucks China said it planned to increase staffing and improve digital systems, among other investments, to ensure customers receive timely service during peak hours.

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