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Starbucks Opens Free Study Rooms in China to Lure Customers

Starbucks Opens Free Study Rooms in China to Lure Customers

Yahoo11 hours ago
(Bloomberg) -- Starbucks Corp. 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.
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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 in a statement on its official Weibo account this week. People won't be required to purchase anything from Starbucks to use the spaces.
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 like Luckin Coffee Inc., which regularly rolls out new products and flavors, and the soaring popularity of Chinese tea chains. The Seattle-based coffee giant has also been weighing options for its China business, including a stake sale, Bloomberg has reported.
Under new China chief Molly Liu, some of Starbucks's latest moves in the mainland are taking 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 prioritizes paying customers.
Starbucks China has also expanded its drinks menu to include more sugar-free options and teas catering to local tastes, slashed prices on a slew of beverages and upped its options for customizing orders. That's in contrast to recent moves at home, where the chain has simplified its menu to boost operational efficiency.
'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 newly-hired China chief growth officer has led to more tie-ups with movie and cartoon franchises and pop singers to lure Gen Z customers, adopting a playbook that's helped local rivals. The measures appear to have helped stem a sales decline in the mainland in the most recent quarter.
There's no time limit or reservation needed to use the new study spaces. Book-donation areas have also been set up for customers — an initiative expected to boost foot traffic and ultimately revenue. New stores are also opening in heritage or scenic locations to draw people in, including a recent unveiling on tourist-friendly Yulong Snow Mountain in Yunnan Province.
--With assistance from Karthikeyan Sundaram.
(Updates throughout with more information on Starbucks's China business.)
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©2025 Bloomberg L.P.
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