Starbucks factor

Because many Chinese customers love to spend hours in a coffee shop instead of leaving when their coffee is ready, Starbucks has to rent larger spaces for its shops in China, said John Culver, president of Starbucks China and Asia Pacific, according to Reuters.

The pricing is based on a number of factors such as cost of labor, equipment, rent and custom duties, in addition to raw materials, he said.

[Photo by Shi Yan/Asianewsphoto]