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Straits Times
3 days ago
- Business
- Straits Times
Starbucks struggles to find a new identity in cutthroat China
Baristas work to make drinks in Starbucks Reserve Roastery, the largest Starbucks shop in the world, in Shanghai, on Feb 28. BEIJING - When a group of private equity investors and Chinese technology companies were asked for ideas on how they would revive Starbucks' fortunes in the world's second-largest economy, the most common advice was: Be a lot more like the local competition that beat you. Starbucks, they argued, should have smaller stores, employ fewer people and cut prices, according to sources familiar with the sale of a stake in Starbucks' China business that reportedly kicked off in May. These proposals resemble the very model that enabled Luckin Coffee to overtake Starbucks as China's biggest coffee chain two years ago by selling coffee at one third of its price. Most of the prospective investors want a controlling stake of Starbucks' Chinese business. And while US company has said it'll only partner with an investor aligned with its vision, the process has put its local Chinese management team on tenterhooks, worried that a brand they've spent decades building will become just another low-price, trend-following chain, said people familiar with the matter. The stake sale exercise is underscoring Starbucks' identity crisis in China as it tries to salvage a flagging legacy business amid fierce domestic competition – a problem that has afflicted other foreign brands as China's economy undergoes major shifts. What Starbucks chooses to do in China will decide whether it ends up successful like McDonalds, or faltering like Apple. Starbucks is 'in a tough position,' said Mark Tanner, managing director of consultancy China Skinny in Shanghai. 'Many cost-conscious consumers are opting for cheaper alternatives, but trying to compete on price will be a race to the bottom, destroying any margins they currently hold.' Starbucks brought the cafe experience to China in the 1990s, and as China's economic growth soared, its footprint expanded in tandem to bring its total number of stores there to over 7,800. In recent years, however, Western brands have been losing ground to local names amid rising nationalism and reluctance to pay premiums for brands. The very few American brands that still thrive in China's great consumer pullback made successful adaptations to their business. Yum China Holdings' KFC incorporated street food and local delicacies to its menu and offers cost-conscious consumers meal deals all year long. Walmart's Sam's Club taps into the middle class's craving for exclusivity and growing health consciousness with high-quality private label snacks and premium meat cuts. Top stories Swipe. Select. Stay informed. Asia India, Singapore ministers discuss deeper tie-ups in digitalisation, skills, industrial parks Business More seniors remain employed after retirement and re-employment ages raised in 2022: MOM study Singapore askST: Public bidding possible if assets seized in $3b money laundering case are sold at auction Singapore 2 dead after fire in Jalan Bukit Merah flat, about 60 evacuated Sport PSG beat Tottenham on penalties to win Uefa Super Cup Singapore TB screenings at two pre-schools after staff member diagnosed in July Business Haidilao to close Clarke Quay outlet on Aug 31; exit follows 3 earlier outlet closures Opinion How to train a drone warrior, with lessons from Ukraine Starbucks seems stuck in between those models. While its 'third place' store format is expensive to upkeep, customers have become less willing to pay higher prices for its drinks since the Covid pandemic and ongoing economic downturn. Compounding the problem was previous China chief executive officer Belinda Wong's tendency to hew more closely to the company's strategy in developed Western markets, according to people with knowledge of the matter. Ms Wong rejected ideas like a lower-price spinoff chain before Covid, as well as more localised campaigns during the pandemic, the people said, citing a belief that they conflicted with Starbucks' brand. New initiatives have been launched rapidly since new CEO Molly Liu took over in late 2024. These included a cheaper line of tea-based drinks and sugar-free options, and tie-ups with the move Zootopia and Taiwanese rock band Mayday. 'Starbucks' new product innovation and marketing campaigns this year show it's digging deeper to explore the demand of Chinese consumers,' said Roolee Lu, Shanghai-based director of consultancy Mintel Group. 'They want new products, they want emotional connection with brands, they need some comprehensive, immersive experiences.' There are signs of a turnaround. Based on conversations with three store managers in Shanghai, drinks cobranded with Mayday drove their May sales by as much as 20 per cent in their stores. Overall, the most recent quarter showed sales returning to growth since late 2023 in China, with Starbucks CEO Brian Niccol attributing the success in an earnings call last month to 'beverage innovation' and changes to 'non-coffee pricing.' Yet the lack of a clear strategy endures, especially around its stores which, depending on who you ask, are either a vaunted part of brand identity or an expensive cost overhang. The Chinese management team is now experimenting with different ways to bring people in. These include making more stores pet-friendly, providing free-to-use study rooms and targeting store openings in heritage or scenic sites, such as a recent one in Yunnan's Yulong Snow Mountain. From the potential investors' perspective, it isn't necessary to have large stores if Starbucks aims to capture the needs of busy professionals who are unlikely to linger, though some shops should maintain in-store experiences, said people familiar with the proposals. Cutting the number of staff in stores is also an option, the people said, as many local chains only have one employee as orders are mostly taken online. Jessica Gleeson, a former Starbucks China executive who now runs her own retail consultancy in Shanghai, said the risk is that the new investor doesn't understand Starbucks' positioning in China and turns it into just another 'transactional' coffee chain. 'The low-end of the market is already crowded,' she said. Whichever direction Starbucks China takes, one thing is clear: It'll regain past glory only if consumers like Jelly Li can be persuaded to become regular customers again. The 32-year-old musician from Guangzhou was recently at a Starbucks in Shanghai with a view of the Oriental Pearl Tower. She was unimpressed by the orange-flavored ice-shaken espresso she ordered, noting: 'Starbucks taught me how to enjoy coffee when I was in college. Now I need coffee everyday but no longer pay for Starbucks.' BLOOMBERG
Eater
18-06-2025
- Business
- Eater
Seattle Is About to Get Its First-Ever Thai Coffee Shop
In drizzly February 2025, Emily Sirisup decided she wanted to take a trip. She's been in Seattle since she was a baby and grew up surrounded by the service industry; her parents both worked in Thai restaurants and she spent six years as a barista at Capitol Hill's bustling Starbucks Reserve Roastery. Feeling an urge to explore her roots, she went with her partner Cole Arneson to her parents' home country of Thailand. She followed an itinerary that reflected her deep love of coffee, meeting coffee growers in the northern province of Chiang Rai, including the team at award-winning Alexta Coffee Roasters. The couple left with a vision: to bring Thai coffee culture in Seattle. Nudibranch Coffee — an homage to the fluorescent sea slugs native to the Northwest and pronounced new-dih-brank — will open this summer. The business will roast and sell coffees from Thailand, distributing online and in local grocery stores. There's a Kickstarter set up to help secure Nudibranch's first cafe space in North Seattle, too. The hope is to open that space in fall 2025. That cafe, if it opens, will be a rare outpost of Thai coffee culture in the U.S. There are no Thai coffee roasters or coffee shops in Seattle, and Thai-grown coffee is a rarity in this country. (Coffee has been grown in Thailand for centuries; production ramped up when northern farmers were encouraged by the government to grow coffee beans rather than opium in the 1970s.) Due to the heat in Thailand, cooling coffee drinks blended with fruit are common. Orange juice with espresso, for instance, will be a mainstay at Nudibranch. Butterfly pea matcha, mochas made with the malted chocolate power Milo, and oliang (coffee brewed in brown sugar) will all serve as standard bearers, too. Sirisup and Arneson's beans will be roasted by Kuma Coffee, a Seattle roaster. The business's first roast, simply called the Single Origin Chiang Rai, boasts notes of apricot and plum with a clean finish. Sirisung anticipates sourdough bread made by friends who are local Thai bakers on the food side of the menu. The business's permanent location will also host latte art classes, hang local art, and serve fare from guest chefs. Nudibranch is a direct-purchasing coffee operation, which is often touted as much healthier for the supply chain than relying on negotiators and tertiary importers. The beans are grown by the seven-person Alexta team. The coffees are shade-grown and organic. This is the first time that group's beans have been served in the U.S. 'Emily has done really well with all those farmers in that region,' Arneson says. 'That whole community is not really connected to the U.S. in any sort of major way.' Sirisup and Arneson say there's a lot of room for their business to grow. The company's first batch of green beans arrived in May, and were roasted by Kuma in early June. While at Starbucks, Sirisup helped organize the Starbucks Workers United union. She says that experience helped her learn about the kind of cafe she'd like to run: one where the coffee is connected to its origins. 'We're Thai-inspired coffee,' Sirisup says. 'But we want to make it relevant to the Pacific Northwest, as well.' Nudibranch Coffee will open its first permanent location in October 2025. Follow the Kickstarter for updates. See More: Coming Attractions Seattle Restaurant News
USA Today
12-06-2025
- Business
- USA Today
Starbucks job offering up to six figures to travel, drink coffee
Starbucks job offering up to six figures to travel, drink coffee The salary range is up to $136,000 for the 12-month, full-time role. Show Caption Hide Caption Watch: Starbucks treats rooster to a 'cluck cup' Starbucks workers were stunned and overjoyed when a rooster named Fluffy made appearance at an Arizona drive-thru. If you love coffee, have the travel bug and are addicted to your phone, Starbucks may have the perfect job for you. Starbucks is hiring two content creators to travel to some of the company's most unique locations around the world, the coffee company announced on May 28. The creators' main responsibility will be to capture their experiences at these locations, which may include a Starbucks coffee farm in Costa Rica, the Starbucks Reserve Roastery in Milan or coffeehouses in Tokyo, the company said in a news release. "The creators will highlight the care and craft that goes into every cup of Starbucks coffee as well as the diverse Starbucks experiences in communities around the world," Starbucks said in the release. With the full-time, yearlong roles comes a salary of up to $136,000, according to the job listing. The end of the hiring window is quickly approaching; here's what to know. Do you work for a great organization? Nominate it as one of America's Top Workplaces. What does a Starbucks content creator do? According to Starbucks' job description, the content creators will travel to 10-15 of the company's locations around the world over a one-year timeframe. In addition to the travel portion, the employees will be tasked with creating "engaging social content highlighting interesting, social-first stories focused on our global brand and product experiences," the description reads. The creative part of the role will include creating and pitching ideas, as well as editing and publishing videos for Starbucks' social channels. How to apply to be a Starbucks content creator Starbucks is hiring two content creators, including one current employee and one external candidate. The application window is open until June 13. Interested candidates can apply on Starbucks' website. The process also includes a video requirement — applicants must post a video on TikTok explaining why they are the right fit for the job. The video must be public and include #StarbucksGlobalCoffeeCreator in the caption. Applicants must be U.S. residents who are at least 18 years old with a valid passport. Outside of the travel associated with the role, it is a remote position. Starbucks content creator salary According to the job posting, the salary range for the content creator role is between $80,100-$136,000. Travel costs and expenses associated with work trips will be covered by Starbucks, the job description reads. Additionally, the role comes with insurance, paid vacation and retirement benefits. Melina Khan is a national trending reporter for USA TODAY. She can be reached at
