Starbucks Has a Pumpkin Spice Latte Problem in China
www.nytimes.com
For years, Starbucks was the dominant coffee chain in China. Now rivals offering local flavors and cheaper prices are crushing the company’s bottom line in its second-largest market.

Good article from the New York Times.

Summary

Starbucks China is losing customers at a very rapid pace. Starbucks corporate executives are angry. Brian Niccol, the new $100 million CEO of Starbucks, sounded the alarm in October, calling the competition “extreme”. For the Chinese Lunar year, Starbucks released a pork flavor latte. It cost more than $9 and was widely seen as a disaster.

Billionaire Howard Schultz, Starbucks’s former CEO, insisted that Starbucks would not enter a price war in China. He claimed “as chinese customers become more knowledgeable about coffee, they will want to upgrade from lower-end or discounted products”

  • huppakee@lemm.ee
    0·
    6 days ago

    I don’t disagree but a lot of chains rely on franchisers, who can still be a neighbour. Also the employees can still be your neighbour. Also the supplier can be your neighbor. Buying local is definitely a good choice, likely the better choice, but not all ‘companies headquartered in a different city’ are equally evil. Also because economy of scale is a thing. That’s why you’re not talking about ‘companies headquartered in another street’ for example.

    • shalafi@lemmy.worldEnglish
      1·
      6 days ago

      All true! But the profits still get siphoned off elsewhere. My Lowe’s employs us locals, but the hardware store downtown doesn’t exist to provide shareholder value.

      Again, you’re right. Non all non-local sellers are evil capitalists, hell bent on making us poor.