No order, no seat: Starbucks China rolls out new store policy

Taking a seat at a Starbucks in China? Just make sure you’re also ordering something there. A new policy by Starbucks China takes effect across all its 8,000 stores on Thursday, making it mandatory for people to purchase items if they want to sit in its cafes. Starbucks China said the move was part of efforts to improve the “in-store experience” for customers.

The company is facing stiff competition from homegrown brands such as Luckin Coffee. Starbucks stores around the world have also been wrestling with non-paying seat-hoggers and other undesirable behaviour from customers. In South Korea, Starbucks has told customers to stop bringing “bulky items” into their stores, after some patrons reportedly hogged seats with printers and desktop computers in tow.

In North America, Starbucks reversed its open-door policy, which for years allowed people to use their seats and toilets without buying anything, saying that it wanted to “prioritise” paying customers. Starbucks China is now following suit. Ahead of the official announcement on Wednesday, reports of the new seating policy at China’s Starbucks stores had been circulating this week – along with social media videos of what appear to be “purchase to sit” signs in Starbucks stores.

Many on Chinese social media welcomed the new policy. “Finally, there won’t be peak periods where people are just sitting there not ordering anything, drinking Luckin coffee, playing games and yelling on the phone,” reads one of the top-liked comments on Weibo. “Every time I walk around, there’s nowhere to sit,” “There’s nothing wrong with it. I’d feel awkward sitting there if I didn’t make a purchase.

I’d rather leave the seats for those who made purchases and need the seats,” another Weibo user commented. Last month, a Starbucks store in Sichuan province sparked debate after video of its chained-up outdoor seats and tables were circulated on social media. It appeared to be an attempt to block people from sitting there without paying. Since opening its first store there in 1999, China has become Starbucks’ second-largest market.

But it has faced stiff competition in recent years from Luckin and other local brands that offer cheaper products. Luckin also offers a robust app-based ordering system that prioritises grab-and-go transactions, challenging Starbucks’ model of a full cafe experience where people can sit down and enjoy their food and drinks. In 2023, Luckin overtook Starbucks as China’s largest coffee chain.

Starbucks said last year it would sell 60% stake of its business in China as part of a $4bn (£3.04bn) deal with investment firm Boyu Capital. In another statement on Wednesday, Starbucks China said it was planning to increase staffing and improve digital systems at its stores, among other investments to “ensure customers receive timely and warm service even during peak hours”.