Rising costs have contributed to the price surge of some Starbucks drinks on the Chinese mainland. According to the Seattle-based coffee chain, Starbucks stores on the Chinese mainland will adjust their pricing of selected beverages by one or two yuan beginning June 16, 2016. This price adjustment does not involve food, whole bean coffee, merchandise, or Starbucks reward cards…Full Article: ECNS.cn June 2016

Key Point

  • Starbucks will raise the price of its coffee drinks by 8% to 10%. The last time Starbucks raised the price of its coffee drinks was in 2012.

ChinaAg Comments

  • As of early 2016, Starbucks had more than 2,100 stores located across 10 cities, making China its largest overseas market.
  • In January 2016, Starbucks announced plans to open 1,400 new stores by 2019.
  • In 2015, Starbucks had a 73.3% of China’s high-end coffee chain market, followed by McDonald’s McCafe at 9.3%, Whitebread’s Costa Coffee (British), and China Resources Enterprise’s Pacific Coffee at 3.9%.
  • In December 2015, Starbucks began marketing their goods on Alibaba’s Tmall e-commerce site.
  • As of 2015, Starbucks had 1,700 coffee shops in China.
  • In September 2015, Starbucks opened two stores in Xining City, Qinghai Province, northwest China.
  • In March 2015, Tianjin’s Tingyi Group signed a deal with Seattle’s Starbucks to produce and distribute the coffee company’s ready-to-drink products in mainland China.
  • In November 2012, Starbucks raised the retail price on five espresso-based drinks (e.g. latte, macchiato, mocha, and cappuccino) by CNY 2 (US$0.32) in 12 cities across China including Tianjin, Chongqing and Dalian.
  • In January 2012, Starbucks raised the retail price for regular coffee by CNY 1 to 2 (US$0.16 to US$0.32). Starbucks also increased the price of espresso and hot chocolate by CNY 1 to 3.
  • In 1999, Starbucks opened its first coffee store in China.

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