Competition between coffee giants in China led Starbucks to make an unusual decision

Starbucks announced a new policy across all 8,000 of its stores in China: seating will only be allowed for paying customers. The move aims to address competition from Luckin Coffee, which surpassed Starbucks to become the largest chain in the country. Social media in China responded positively.

Starbucks has announced a new policy across all 8,000 of its stores in China, allowing seating only for paying customers. The move is intended to address intense competition from local rival Luckin Coffee, which surpassed Starbucks in 2023 to become the largest coffee chain in China. Starbucks explains that the policy aims to improve the customer experience and prevent the phenomenon of seat occupiers who do not purchase anything. Many on Chinese social media responded positively, with one user writing: 'Finally, there won't be people just sitting, drinking Luckin coffee, and shouting on the phone.' The article notes that the phenomenon is not unique to China, and Starbucks faces it in the US and South Korea as well.