Starbucks China tightens rules requiring purchases for cafe seating

Starbucks has moved to require customers to make a purchase in order to occupy seating at its Chinese outlets, tightening policies as the American coffee giant confronts rising competitive pressure in one of its key markets.

The enforcement reflects the company's struggle to compete against cheaper domestic rivals, particularly Luckin Coffee, which has rapidly expanded its presence and customer base by offering significantly lower prices. Other local players have also gained traction, eroding Starbucks' premium positioning in the world's second-largest economy.

The seating requirement represents a shift in approach for Starbucks, which has traditionally positioned its cafes as social gathering spaces where customers can linger. The policy change signals the company's effort to optimize store operations and boost revenue per visit amid tighter margin pressures.

China remains a crucial growth market for Starbucks, but the competitive landscape has shifted markedly in recent years. Luckin Coffee, which emerged from accounting scandals to rebuild its brand, has captured significant market share through aggressive pricing and convenience-focused operations.

The move underscores broader challenges facing Western consumer brands in China, where local competitors have demonstrated agility in adapting to consumer preferences and price sensitivity.