No order, no seat: Starbucks China rolls out new store policy

Taking a seat at a Starbucks in China? Just create sure you're additionally ordering something there.

Key points

• Starbucks remarked last year it would sell 60% stake of its business in China as part of a $4bn (£3.04bn) agreement with investment firm Boyu Capital.
• Since opening its first store there in 1999, China has become Starbucks' second-largest market.
• In 2023, Luckin overtook Starbucks as China's largest coffee chain.
• Last month, a Starbucks store in Sichuan province sparked debate after video of its chained-up outdoor seats and tables were circulated on social media.
• Starbucks China remarked the move was part of efforts to improve the "in-store experience" for customers.

Notably, a new policy by Starbucks China takes effect throughout all its 8, 000 stores on Thursday, making it mandatory for residents to purchase items if they want to sit in its cafes.

Starbucks China remarked the move was part of efforts to improve the "in-store experience" for customers. The firm is facing stiff competition from homegrown brands such as Luckin Coffee.

Starbucks stores worldwide have additionally been wrestling with non-paying seat-hoggers and other undesirable behaviour from customers.

After some patrons reportedly hogged seats with printers and desktop computers in tow, in South Korea, Starbucks has informed customers to stop bringing "bulky items" into their stores.

In North America, Starbucks reversed its open-door policy which for years allowed individuals to apply their seats and toilets without buying anything, saying that it wanted to "prioritise" paying customers. Starbucks China is now after suit.

Ahead of the official announcement on Wednesday, reports of the new seating policy at China's Starbucks stores had been circulating this week – along with social media videos of what appear to be "purchase to sit" signs in Starbucks stores. Plenty of on Chinese social media welcomed the new policy.

"Finally, there won't be peak periods where people are just sitting there not ordering anything, drinking Luckin coffee, playing games and yelling on the phone, " reads one of the top-liked comment on Weibo. "Every time I walk around, there's nowhere to sit, ".

"There's nothing wrong with it. I'd feel awkward sitting there if I didn't create a purchase. I'd rather leave the seats for those who created purchases and need the seats, " another Weibo user commented.

Last month, a Starbucks store in Sichuan province sparked debate after video of its chained-up outdoor seats and tables were circulated on social media. It appeared to be an attempt to block individuals from sitting there without paying.

Since opening its first store there in 1999, China has become Starbucks' second-largest market. But it has faced stiff competition over recent years from Luckin and other local brands that offer cheaper products.

Luckin additionally offers a robust app-based ordering system that prioritises grab-and-go transactions, challenging Starbucks' model of a full cafe experience where residents can sit down and enjoy their food and drinks. In 2023, Luckin overtook Starbucks as China's largest coffee chain.

In another statement on Wednesday, Starbucks China remarked it was planning to rise staffing and improve digital systems at its stores, among other investments to "ensure customers receive timely and warm service even during peak hours".

Taken together, the developments around no order, no seat: Starbucks China rolls out new store policy point to a situation that is still moving, and the coming days should bring more clarity.