By continuing you agree to eChinacities's Privacy Policy .
Sign up with Google
Sign up with Facebook
Q: Guys, Starbucks coffee is expensive in China
A cup of 354 milliliters of Latte coffee costs 27 yuan (US$4.4) in China as compared to only 19.98 yuan in Chicago, 14.6 yuan in Mumbai and 24.25 yuan in London, the CCTV report said
What may be the reason for the Cost difference?
I never drink at Starfucks. Here or anywhere else in the world. Not because it's "too expensive", but because I've seen the chain run small, traditional, historical, charming coffeehouses out of business in countries like Spain, France and Portugal, for example. And I find that, despite what all you free-market advocates out there may think, soulless and predatory.
That said, I wouldn't worry so much about how expensive Starfucks is in China. As a Chinese, I'd worry more about how much more expensive a flat/condo costs in China than a house with a yard in many countries overseas. A flat in my 2nd-tier city in China costs more than a 3-bedroom home with a back yard in Austin, Texas.
So, which is the biggest rip-off? Who's screwing who? Starfuck Americans screwing the Chinese? Or Chinese real-estate developers in cahoots with the gov't screwing the Chinese?
And by the way, that house in Austin? I own the land.
Silva is back.
Scandinavian:
the odds of anyone thinking that are not looking good.
The main reason for the cost difference is that consumers are willing to pay. Starbucks is also more expensive in some countries in Europe than in the US. Starbucks had an advantage of their brand, they were early players in the coffee market in China. It's just like the iPhone. To fulfill the Chinese dream you need American stuff.
Scandinavian:
yeah well, the European stuff is usually only for people with good taste
Red_Fox:
Hmmm... can't argue with that, Scando. Taste is everything. Given the choice between gaudy and Gaudi, I reckon most folks would chose the former rather than the latter. And you can make the leap from architecture to any manmade contrivance or application: laminate vs hardwood or marble, aluminum vs concrete, tinsel, shiny bits & bobs vs silver and gold. As long as it looks good, right?
Now, what does that have to do with coffee? Or Europe vs America vs China when it comes to taste?
Scandinavian:
If you want a cup of coffee to keep you awake, Starbucks may be your friend, but if you want a cup of coffee that brings you ecstasy, then probably some Italian barista would be a better choice.
yes, starbucks charges more in china, i payed for a venti brewed coffee in waikiki for 2.29 dollars,
the problem is table turnover in china. people hang out for 3 hours after buying one cup of tea and get refills free and they have to pay outrageous rent and building cost for bigger places because everybody takes the tables for so long. if you cant get more customers then you stick it to the wifi freeloaders on the first cup to make up for lost sales.
ive seen people sleep overnight in kfc and macdonalds here, no problem, you cant tell people to leave and many people will not buy if they cant get a table, myself included, take out starbucks, coffee to go, not happening, for some maybe an exception,
the only good thing about starbucks is every employer has health insurance, even part time, in every country they operate unless the government takes care of it of course. many people work for them and have other jobs and run their own businesses just to have the insurance.
i would imagine starbucks could lower prices by about 20 percent if they had a 2 hour limit on using a table, but the chinese would start a cultural revolution again if you actually enforced it.
damn, i payed less in hawaii than chicago for coffee at a starbucks, must be the taxes in chicago that keep the city so safe for or from violent crime, good job chicago. lol
Rent is the reason for the cost difference. Also, did your government tell you how much Starbucks baristas are paid when compared to cheaper shops? You can judge from their attitude, I once went to a Chinese coffee shop for 2 days in a row, asking for coffee. The response I got was a blank "meiyou" in other words, "I'm too lazy to make any."
I understand that the government is attacking foreign companies, but is that a good idea? And why not learn from them? Starbucks for example, good quality products, employees that are trained and treated well (not made to shave their heads), researched and planned locations, product and service consistence, great environment (does not have that typical China smell).
Red_Fox:
I've received excellent service in every Chinese coffeehouse I have visited in China. Table service - not order placement in a queue at the cash register. Starfucks is a fad that I hope will go away one day and we can see the return of authentic coffeehouses that are a pleasure to visit and will not bust the bank, to boot.
Englteachted:
Sorry Red, I've been to many Chinese coffeehouses. They were priced higher than Starbucks. And the quality was hit or miss. The best coffeehouses I ran into were owned by expats or Chinese who spent time abroad.
Scandinavian:
The rent is typically high for a reason. E.g. it is a crowded place where the potential for selling your product is higher. If the product sells, rent should not be a problem.
Why open a store in a country on the edge of financial collapse?
Is a bailout already planned? what does starbucks know that the rest of the world does not, maybe I should bottom feed an Italian index fund while it's a low price for a long term ten bagger.
Starbucks has allways been overpriced. I was wondering when people would start realizing that.
