[BEIJING] Starbucks 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 study areas have been launched in some stores in southern Guangdong Province, home to millions of young workers at the country’s export, manufacturing and technology hubs, Starbucks China said this week.
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 such as Luckin Coffee, which regularly rolls out new products and flavours, and the soaring popularity of Chinese tea chains. The Seattle-based coffee giant also wants to reassert itself as a welcoming “third place” for leisure outside the home.
There’s no time limit or reservation needed to use the spaces and people are not required to purchase anything from Starbucks. Book-donation spaces have also been set up for customers, an initiative expected to boost foot traffic and ultimately revenue when users indulge in drinks and food while chilling there.
Some of Starbucks’s new moves in China take an opposite approach to policies in the US, where starting earlier this year, people must buy items to use its cafes, patios and restrooms as the company prioritises paying American customers.
Starbucks China has also expanded its drinks menu in the mainland to include more sugar-free options and teas catering to local tastes, slashed prices on a slew of beverages and upped its options for customising orders. That’s in contrast to recent moves at home, where it’s simplified its menu to boost operational efficiency.
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“Starbucks is looking for ways to create fun entry drink experiences for Gen Z consumers,” said Jessica Gleeson, a former Starbucks China executive who now runs a Shanghai-based retail consultancy firm, “in-store activities both bring new customers to the cafes and create a relationship between Starbucks and the community. It is a simple, but effective tactic”.
A first-ever China chief growth officer was appointed in late 2024, and a new management team is in place led by Molly Liu, who became the China business’s sole leader last September.
Starbucks has more than 7,700 China locations, and new stores are opening in heritage or scenic locations to draw people in, including a recent unveiling on Yulong Snow Mountain in Yunnan Province, popular with tourists lured by its natural beauty.
As part of its work to solidify a concept of community, Starbucks is also displaying student art in some Chinese university branches, and making other outlets pet-friendly. The chain plans to try putting spaces for “hobbies” into some stores, it said in its statement this week, without elaborating.
Social media marketing has stepped up in recent months, and there have been new merchandise collaborations with Walt Disney’s animated film Zootopia and Taiwanese rock group Mayday, whose lyrics Starbucks China printed on its cups. BLOOMBERG
