① China: Second only to the U.S. in store numbers
According to the 2022 Q1 data, Starbucks has 34,317 stores worldwide. The U.S. leads in number, followed by China, and South Korea ranks fourth, right after Japan. China, which holds the second most numerous outlets, reportedly opens a new Starbucks every 9 hours.
Since opening its first store in Beijing’s Guomao in 1999, Starbucks has dominated the Chinese market. Despite the prices being higher than in South Korea, the popularity of Starbucks remains unfazed in China. This year, Starbucks plans to open a roasting plant near Shanghai – the first in Asia. Shanghai boasts over 1,000 Starbucks outlets, making it the leading city in the world for Starbucks locations.
Even amidst the ongoing COVID-19 pandemic, Starbucks’ presence in China has grown. Younger generations in China view Western-style coffee culture symbolically, favoring Starbucks for its coffee and Western cultural experience. While local Chinese coffee brand Luckin sells coffee, Starbucks emphasizes selling a lifestyle.
Their success in China can be attributed to high-quality strategies using top-tier beans, interiors incorporating traditional Chinese culture, big-data-based store selection strategies, and an extensive localization approach.
② Shocking Video Filmed at Starbucks Outlet
A disturbing incident occurred in two Starbucks outlets in Wuxi, Jiangsu Province. They were caught using expired ingredients. The revelation came from a Chinese journalist who secretly filmed the practices. The video exposed expired matcha for making matcha lattes, expired chocolate for cocoa, and relabeling expired bread for continued sales.
In the video, a staff member commented, “It’s wasteful to throw it away. If we don’t use it, the cost is borne by the store,” and mentioned that previous managers taught them this approach.
Following the video’s release, which garnered 50 million views on Weibo, Starbucks immediately closed the two involved stores. In a statement, Starbucks expressed its strict adherence to food safety standards since its inception in China 22 years ago and welcomed ongoing public and media scrutiny.
The local authorities in Wuxi have initiated an investigation into the matter, with the concerned store being fined approximately $212,000.
③ Hygiene and Plagiarism Controversies
But that’s not the end of the controversies surrounding Starbucks in China. Another incident involved a live cockroach found in a beverage. The customer stated they initially thought the insect was dead, but it was still alive upon closer inspection.
In its defense, Starbucks said that after reviewing the store’s surveillence footage, they found strict adherence to hygiene rules. They also conducted an inspection and found no evidence of any pest issues.
Earlier in February, Starbucks China was under fire for a limited-time New Year promotion. Customers who spent over 150 yuan (~$23) were gifted a bag with a rabbit design that drew plagiarism allegations against luxury brand Alexander Wang. In 2020, a chain bag style tumbler was suspected of resembling a Chanel product, and in 2017, they were criticized for a product eerily similar in size to a product from French lunchbox brand Monbento.
By. Kim Min-jae (minjaaie33@mememedia.co.kr)
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