Starbucks efforts set to upgrade store experience

Starbucks China will introduce a purchase-required seating policy nationwide from Oct 22 while investing more than 300 million yuan ($44.9 million) in fiscal year 2027 to upgrade its in-store experience.

The new policy, which requires customers to make a purchase before using store seating, has attracted widespread public attention. Starbucks said the implementation will be guided by clear service standards while maintaining flexibility in daily operations.

Store employees will receive training on communicating with customers in a friendly manner and accommodating reasonable special circumstances, the company said. Customers requiring assistance, including pregnant women and people with mobility issues, will continue to receive priority support.

The move is part of Starbucks China's new initiative to redefine how customers use and experience its cafes.

"While non-paying visitors may increase foot traffic, they could also weaken paying customers' sense of ownership and comfort in the space," said Jason Yu, general manager at CTR Market Research. "In the long term, Starbucks needs to ensure that its stores continue delivering the experience that customers expect from the brand."

The coffee market in China has undergone significant changes in recent years, with domestic players such as Luckin Coffee and Cotti Coffee expanding rapidly through lower prices, mobile ordering and convenient pickup models.

These changes have reduced consumers' dependence on cafes as physical destinations, creating pressure for Starbucks to make its store experience a stronger reason for customers to visit.

Against this backdrop, Starbucks is increasing investment in its physical stores, service capabilities and digital infrastructure.

Molly Liu, chief executive officer of Starbucks China, said the company's "thousand stores, thousand looks" strategy is reflected not only in different store formats and product offerings, but also in everyday customer interactions.

"In the new fiscal year, we will continue directing resources to the front lines of our stores, supporting partners to focus on crafting every cup of coffee and serving every customer well," Liu said.

As part of the investment plan, nearly half of Starbucks' stores nationwide will receive additional staffing during peak hours, with priority given to high-traffic locations such as transportation hubs, business districts and tourist destinations. The move will add more than 200,000 hours of frontline service time each month. Starbucks Reserve stores will receive an additional 70,000 hours of monthly staffing.

The company will also begin rolling out a new generation of intelligent mobile point-of-sale systems from January, with more than 70 new functions designed to help employees better understand customer preferences and provide more personalized service.

Around 1,000 stores across China will undergo renovations and equipment upgrades during fiscal year 2027.

The latest measures come after Starbucks completed its China joint venture transaction with Boyu Capital in April. Under the deal, Boyu holds a 60 percent stake in the joint venture, while Starbucks retains 40 percent and continues to license the brand.

Nearly 8,000 previously company-operated stores across the Chinese mainland have been converted to a franchise model. The two sides aim to expand their network in the country to 20,000 locations over the long term.