Starbucks opens free study rooms in China to lure back customers
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.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Sign Up
Sign Up
'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
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Straits Times
an hour ago
- Straits Times
US, China to resume tariff talks in effort to extend truce by 90 days
Find out what's new on ST website and app. US Treasury Secretary Scott Bessent and Chinese Vice-Premier He Lifeng will lead tariff talks on July 28, in Stockholm. STOCKHOLM – Senior US and Chinese negotiators will meet in Stockholm on July 28 to tackle longstanding economic disputes at the centre of the countries' trade war, aiming to extend a truce keeping sharply higher tariffs at bay. The South China Morning Post reported on July 27 that the two sides are expected to agree to extend the truce by three more months. China is facing an Aug 12 deadline to reach a durable tariff agreement with President Donald Trump's administration, after Beijing and Washington reached a preliminary deal in June to end weeks of escalating tit-for-tat tariffs. Without an agreement, global supply chains could face renewed turmoil from duties exceeding 100 per cent. The Stockholm talks, led by US Treasury Secretary Scott Bessent and Chinese Vice-Premier He Lifeng, take place a day after European Union chief Ursula von der Leyen meets Mr Trump at his golf course in Scotland to try to clinch a deal that would likely see a 15 per cent baseline tariff on most EU goods. Trade analysts on both sides of the Pacific say the discussions in the Swedish capital are unlikely to produce any breakthroughs but could prevent further escalation and help create conditions for Mr Trump and Chinese President Xi Jinping to meet later in 2025. Previous US-China trade talks in Geneva and London in May and June focused on bringing US and Chinese retaliatory tariffs down from triple-digit levels and restoring the flow of rare earth minerals halted by China and Nvidia H20 AI chips and other goods halted by the United States. Top stories Swipe. Select. Stay informed. Singapore Sewage shaft failure linked to sinkhole; PUB calling safety time-out on similar works islandwide Singapore Tanjong Katong Road sinkhole did not happen overnight: Experts Singapore Workers used nylon rope to rescue driver of car that fell into Tanjong Katong Road sinkhole Asia Singapore-only car washes will get business licences revoked, says Johor govt World Food airdropped into Gaza as Israel opens aid routes Sport Arsenal beat Newcastle in five-goal thriller to bring Singapore Festival of Football to a close Singapore Benchmark barrier: Six of her homeschooled kids had to retake the PSLE Asia S'porean trainee doctor in Melbourne arrested for allegedly filming colleagues in toilets since 2021 So far, the talks have not delved into broader economic issues. These include US complaints that China's state-led, export-driven model is flooding world markets with cheap goods, and Beijing's complaints that US national security export controls on tech goods seek to stunt Chinese growth. 'Stockholm will be the first meaningful round of US-China trade talks,' said Mr Bo Zhengyuan, Shanghai-based partner at China consultancy firm Plenum. Deals, deals, deals Mr Trump has been successful in pressuring some other trading partners, including Japan, Vietnam and the Philippines , into deals accepting higher US tariffs of 15 to 20 per cent. He said there was a 50-50 chance that the US and the 27-member European Union could also reach a framework trade pact, adding that Brussels wanted to 'make a deal very badly'. Two of Mr Trump's top trade officials, Commerce Secretary Howard Lutnick and US Trade Representative Jamieson Greer, will attend the Scotland talks and then travel to Stockholm. Analysts say the US-China negotiations are far more complex and will require more time. China's grip on the global market for rare earth minerals and magnets, used in everything from military hardware to car windshield wiper motors, has proved to be an effective leverage point on US industries. Trump-Xi meeting? In the background of the talks is speculation about a possible meeting between Mr Trump and Mr Xi in late October. Mr Trump has said he will decide soon whether to visit China in a landmark trip to address trade and security tensions. A new flare-up of tariffs and export controls would likely derail any plans for a meeting with Mr Xi. 'The Stockholm meeting is an opportunity to start laying the groundwork for a Trump visit to China,' said Ms Wendy Cutler, vice-president at the Asia Society Policy Institute. Mr Bessent has already said he wants to work out an extension of the Aug 12 deadline to prevent tariffs snapping back to 145 per cent on the US side and 125 per cent on the Chinese side. Still, China will likely request a reduction of multi-layered US tariffs totaling 55 per cent on most goods and further easing of US high-tech export controls, analysts said. Beijing has argued that such purchases would help reduce the US trade deficit with China, which reached US$295.5 billion (S$379 billion) in 2024. China is currently facing a 20 per cent tariff related to the US fentanyl crisis, a 10 per cent reciprocal tariff, and 25 per cent duties on most industrial goods imposed during Mr Trump's first term. Mr Bessent has also said he would discuss with Mr He the need for China to rebalance its economy away from exports toward domestic consumer demand. The shift would require China to put an end to a protracted property crisis and boost social safety nets to encourage household spending. Mr Michael Froman, a former US trade representative during former president Barack Obama's administration, said such a shift has been a goal of US policymakers for two decades. 'Can we effectively use tariffs to get China to fundamentally change their economic strategy? That remains to be seen,' said Mr Froman, now president of the Council on Foreign Relations think-tank. REUTERS
Straits Times
5 hours ago
- Straits Times
Trump, EU's Von der Leyen seek deal to end transatlantic tariffs standoff
US President Donald Trump is in Scotland for a few days of golfing and bilateral meetings. GLASGOW – European Union chief Ursula von der Leyen is set to meet US President Donald Trump on July 27 to clinch a trade deal for Europe that would likely see a 15 per cent baseline tariff on most EU goods but end months of uncertainty for EU companies. Before the meeting, expected at 1530 GMT (11.30pm Singapore time) on Mr Trump's golf course in Turnberry, western Scotland, American and European teams were in final talks on tariffs for crucial sectors like cars, steel, aluminium and pharmaceuticals. US Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick flew to Scotland on July 26 and EU Trade Commissioner Maros Sefcovic arrived early on July 27. 'We're cautiously optimistic that there will be a deal reached,' said a Trump administration official, who spoke on condition of anonymity. 'But it's not over till it's over.' Ambassadors of EU governments, on a weekend trip to Greenland organised by the Danish presidency of the EU, held a teleconference with EU Commission officials on July 27 to agree on the amount of leeway Dr Von der Leyen would have in the talks. In case there is no deal and the US imposes 30 per cent tariffs from Aug 1, the EU has prepared counter-tariffs on €93 billion (S$140 billion) worth of American goods. EU diplomats have said a deal would likely include a broad 15 per cent tariff on EU goods imported into the US, mirroring the US-Japan trade deal, along with a 50 per cent tariff on European steel and aluminium for which there could be export quotas. The EU deal would be a huge prize, given that the US and EU are each other's largest trading partners by far and account for a third of global trade. EU officials are hopeful that a 15 per cent baseline tariff would also apply to cars, replacing the current 27.5 per cent auto tariff. Possible exemptions Some expect the 27-nation bloc to be able to secure exemptions from the 15 per cent baseline tariff for its aerospace industry and for spirits, though probably not for wine. The EU could also pledge to buy more liquefied natural gas from the US, a longstanding offer, and boost investment in the United States. Mr Trump told reporters there was 'not a lot' of wiggle room on the 50 per cent tariffs that the US has on steel and aluminium imports, adding, 'because if I do it for one, I have to do it for all'. The US president, in Scotland for a few days of golfing and bilateral meetings, told reporters upon his arrival late on July 25 that Dr Von der Leyen was a highly respected leader, and he was looking forward to meeting with her. He said there was a 50-50 chance that the two sides could reach a framework trade pact, adding that Brussels wanted to 'make a deal very badly'. The EU now faces US tariffs on more than 70 per cent of its exports, with 50 per cent on steel and aluminium, an extra 25 per cent on cars and car parts on top of the existing 2.5 per cent and a 10 per cent levy on most other EU goods. Mr Trump has said that without a deal, he would hike the rate to 30 per cent on Aug 1, a level EU officials said would wipe out whole chunks of transatlantic commerce. Further tariffs on copper and pharmaceuticals are looming. The uncertainty and higher tariffs have already hit profits of EU companies in several sectors. A 15 per cent tariff on most EU goods would remove uncertainty but would be seen by many in Europe as a poor outcome compared to the initial European ambition of a zero-for-zero tariff deal on all industrial goods. Seeking to learn from Japan, which secured a 15 per cent baseline tariff with the US in a deal earlier this week, EU negotiators spoke to their Japanese counterparts in preparation for the July 27 meeting. For Mr Trump, aiming to reorder the global economy and reduce decades-old US trade deficits, a deal with the EU would be the biggest trade agreement, surpassing the US$550 billion (S$705 billion) deal with Japan. So far, he has reeled in agreements with Britain, Japan, Indonesia and Vietnam, although his administration has failed to deliver on a promise of '90 deals in 90 days.' REUTERS
Business Times
7 hours ago
- Business Times
Humanoid robots embodiment of China's AI ambitions
[SHANGHAI] Serving craft beer, playing mahjong, stacking shelves and boxing, the dozens of humanoid robots at Shanghai's World AI Conference (WAIC) this weekend were embodiments of China's growing AI prowess and ambition. The annual event is primed at showcasing China's progress in the ever-evolving field of artificial intelligence, with the government aiming to position the country as a world leader on both technology and regulation as it snaps at the US' heels. Opening the event on Saturday, Premier Li Qiang announced China would set up a new organisation for cooperation on AI governance, warning the benefits of development must be balanced with the risks. But in the cavernous expo next door, the mood was more giddy than concerned. 'Demand is currently very strong, whether in terms of data, scenarios, model training, or artificial construction. The overall atmosphere in all these areas is very lively,' said Yang Yifan, R&D director at Transwarp, a Shanghai-based AI platform provider. This year's WAIC is the first since a breakthrough moment for Chinese AI this January when startup DeepSeek unveiled an AI model that performed as well as top US systems for an apparent fraction of the cost. A NEWSLETTER FOR YOU Friday, 2 pm Lifestyle Our picks of the latest dining, travel and leisure options to treat yourself. Sign Up Sign Up Organisers said the forum involved more than 800 companies, showcasing over 3,000 products – the undeniable crowd pleasers being the humanoid robots and their raft of slightly surreal party tricks. At one booth, a robot played drums, half a beat out of time, to Queen's 'We Will Rock You' while a man in safety goggles and a security vest hyped up a giggling crowd. Other droids, some dressed in working overalls or baseball caps, manned assembly lines, played curling with human opponents or sloppily served soft drinks from a dispenser. While most of the machines on display were still a little jerky, the increasing sophistication year-on-year was clear to see. The Chinese government has poured support into robotics, an area in which some experts think China might already have the upper hand over the US. At Hangzhou-based Unitree's stall, its G1 android – around 130 centimetres (four feet) tall, with a two-hour battery life – kicked, pivoted and punched, keeping its balance with relative fluidity as it shadowboxed around a ring. Ahead of the conference's opening, Unitree announced it would launch a full-size humanoid, the R1, for under US$6,000. 'Digital humans' Most high-tech helpers don't need hardware though. At the expo, AI companions – in the form of middle-aged businessmen, scantily clad women and ancient warriors – waved at people from screens, asking how their day was, while other stalls ran demos allowing visitors to create their own digital avatars. Tech giant Baidu on Saturday announced a new generation of technology for its 'digital humans' – AI agents modelled on real people, which it says are 'capable of thinking, making decisions, and collaborating'. The company recently ran a six-hour e-commerce broadcast hosted by the 'digital human' of a well-known streamer and another avatar. The two agents beat the human streamer's debut sales in some categories, Baidu said. Over ten thousand businesses are using the technology already, the department's head Wu Chenxia told AFP. Asked about the impact on jobs – one of the major concerns raised around widespread AI adoption – Wu insisted that AI was a tool that should be used to improve quality and save time and effort, which still required human input. For now, few visitors to the WAIC expo seemed worried about the potential ramifications of the back-flipping dog robots they were excitedly watching. 'When it comes to China's AI development, we have a comparatively good foundation of data and also a wealth of application scenarios,' said Transwarp's Yang. 'There are many more opportunities for experimentation.' AFP
