Latest news with #MollyLiu
Business Times
7 days ago
- Business
- Business Times
Starbucks opens free study rooms in China to lure back customers
[BEIJING] Starbucks 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. 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
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Business Standard
7 days ago
- Business
- Business Standard
Starbucks launches free study rooms in China to lure back customers
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. 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. 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 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 aren't 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 customizing orders. That's in contrast to recent moves at home, where it's 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 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 Co.'s animated film Zootopia and Taiwanese rock group Mayday, whose lyrics Starbucks China printed on its cups.
Yahoo
09-07-2025
- Business
- Yahoo
Starbucks eyes ‘strategic partner' in China amid reports of bids up to $10 billion
You can find original article here Nrn. Subscribe to our free daily Nrn newsletter. Starbucks could be inching closer to a deal in China as the coffee chain considers options for selling at least part of its second-largest global division after the United States. A spokesperson for the company said Starbucks is 'looking for a strategic partner' for its China business following CNBC reports that the company is considering several bids that have valued the company at up to $10 billion. Last month, Chinese financial magazine Caixin reported that 20 potential buyers have been in talks with Starbucks China, including private equity firm Hillhouse Capital. At the time, Starbucks said it was 'not considering a full sale' of Starbucks China. Rumors of the sale of Starbucks' China division have been circulating since November 2023, when Luckin Coffee overtook Starbucks as the largest coffee chain in China. Since then, Starbucks has softened its initial denial of these reports. 'We see significant long-term potential in China and are evaluating the best ways to capture the future growth opportunities,' a company spokesperson told NRN. 'We are looking for a strategic partner with like-minded values who shares our vision to provide a premium coffeehouse experience.' Since last year, Starbucks has focused on turning around the sluggish China business, including the promotion of Molly Liu to sole CEO of the division and the appointment of Starbucks China's first chief growth officer last December. Other steps the company has made in its efforts to drive traffic amid growing competitive pressure include menu innovation, a full rollout of digital menu boards by September, and lowering prices of non-coffee beverages. 'We remain committed to China and want to retain a meaningful stake in the business,' the Starbucks spokesperson said. 'Any deal must make sense for Starbucks business and partners.' Contact Joanna at Sign in to access your portfolio
