11/09/2026

How long will Starbucks survive in China?

In China, Starbucks had a rule that outside food is not allowed, even if one had ordered a cup of coffee. A controversy has erupted over a Chinese customer eating food bought from outside and being told to eat outside the outlet. The irony was it was another Chinese Starbuck employee admonishing the Chinese customer in front of everyone.

This has created an uproar among Chinese netizens on social media, with one netizen accusing Starbucks of double standards. He said that he had seen White customers munching on Macdonald burgers without being told to eat outside at other outlets. And there were others who also witnessed the same thing in other Starbuck outlets. What is worse was that Chinese Starbuck employees just turned a blind eye as far as White customers breaking the rules are concerned, but unforgiving toward their own kind. This is sick.

Starbuck now has a new rule that says - Order your food before sitting down. Ever wonder why Starbuck is losing customers in China to Luckin Coffee and other Chinese brands? There is a saying that you do not mess with customers in China and India if you want to do business in their country.


Anonymous

3 comments:

Anonymous said...

Yes, ang mo tua kee syndrome is very prevalence in Asia. Even leaders in Asian countries also like to suck up to the ang mo. This is because of hundred years of brain washing and also the Asians do not want to wakeup from their wet dream. It is also the same like peasants sucking up to politician/famous or rich people.

Anonymous said...

The thinking is that with a reputation like Starbuck, China cannot do anything. But that thinking is changing and Chinese citizens are becoming patriotic enough to rally around and support home grown brands like Luckin Coffee at the expense of Starbuck. Each wrong step means losing more support from Chinese consumers.

Chinese startup Mixue, the ice cream and tea chain is now so clearly a visible brand around the world. The ability of Mixue to grow so fast is its vertical integration, with most supply chains under its control. This is the modus-operandi of most Chinese entities, which is a bane for other global businesses that depend on outside supply chains for support. I am honestly surprised that ASML, the Dutch EUV machine maker had to rely on more than 5,000 entities around the world under its supply chain needs. Any cut off by any one of those company means problems for ASML. Think about that. ASML is not that unassailable entity as we are led to believe and the Chinese already knows that.

The most ironic realization of all is that not just the ability of Chinese enterprises to dominate in fields it entered into, but their success foraging into other fields. Huawei was basically a phone maker but has now branched into chip manufacturing and even making cars. The same with phone maker Xiaomi, now also making cars and competing with other Chinese EV makers and others outside China. You do not hear of Western phone makers like Nokia or Ericson having branched into making cars. This is why you do not assume that trying to take down a Chinese company will make it collapse. Instead, it pushed them to innovate and create an even greater threat in other sectors. Huawei is now a nightmare for Western telecommunication entities with more to come in chips and high-end vehicles.

Anonymous said...

Trump will kill all American biz in China.