Competition from cheaper local coffee chains forms the backdrop to a new Starbucks seating rule in China: Starting Oct. 22, customers must make a purchase to sit in its cafes.
Starbucks China announced the nationwide policy Oct. 21 and said stores will display notices explaining it. The company said it is investing in the experience inside its cafes.
In a separate statement on WeChat, Starbucks China outlined plans for fiscal 2027 that include renovating about 1,000 mainland stores. It also plans to update equipment and digital systems and add staff during busy periods.
Lower-priced competitors, including Luckin Coffee, have expanded in China as consumers have become more cautious about paying a premium for foreign brands, Bloomberg reported. Starbucks’ China comparable-store sales declined in each of the past two fiscal years, the outlet reported. The company stopped reporting China’s performance separately beginning with the third quarter ended in June.
In November 2025, Starbucks agreed to a deal that would give private equity firm Boyu Capital a majority stake in its China business at a $4 billion enterprise value, Bloomberg reported. The chain has about 8,000 stores in China.
The seating rule follows a similar U.S. change in 2025. Starbucks ended a policy that had allowed people to use its cafes and restrooms without buying anything, saying it wanted to give paying customers priority, Bloomberg reported.
The purchase requirement takes effect across China on Oct. 22.
