starbucks

China is not only eating the West in electric cars or televisions. It also threatens Starbucks

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New York is so damn big that it would be logical that the news of the opening of two coffee shops would pass unnoticed. After all, the city that never sleeps is full of places where one can taste (or pick up) a lattecappuccino, macchiato or any other coffee variation that comes to mind. The opening of the first two Luckin Coffee stores a few months ago in the Big Apple was however sneaked into media such as CNN either The New York Times and has inspired analysis of all kinds out of the country. Logical. After all, in just a few years Luckin Coffee has achieved bend your pulse to Starbucks in China. Now, for his landing in New York, he has chosen a place located barely 60 meters from one of their cafes. What is Luckin Coffee? If its name doesn’t sound familiar to you, don’t worry, it’s more than understandable: Luckin is a coffee shop chain founded in 2017 in China by Jenny Qian and Charles Lu and since then its expansion has focused mainly on the Asian giant. In 2023 he achieved a key milestone by surpassing Starbucks as the largest coffee brand in China and in recent years it has not stopped growing: from close to 16,200 stores that it had that year in China (more than double that of its American rival) has gone on to manage more than 20,000 in several countries. In July the company spoke of 24,097 points of sale spread across mainland China, Hong Kong, Singapore and Malaysia. During the first quarter of 2025 alone, it launched 1,757. After taking over the Chinese market, a few months ago the company announced his landing in America with two stores in Manhattan and Washington Square Park, an area popular with students. “This is just the beginning. New York, we are here,” warned Luckin in networks. Is it that important? The landing of Luckin Coffee in the US market has generated expectation inside and outside the country. Normal. Your surprise Starbucks in China in 2023 (both in sales and number of stores) had a symbolic value that goes far beyond the numbers. To begin with, because the Asian giant is one of the big markets of the American multinational. Starbucks has also been established in the country for some time: it opened its first establishment in Beijing in 1999, contributing greatly to establish coffee culture in a nation that has traditionally opted for tea. That’s why Luckin’s jump to the US has generated so much interest. How has it succeeded? With a bet well defined. At least until now, Luckin Coffee’s strategy has been based on three pillars. First, a dizzying expansion focused on gaining market share. Second, the user experience. Customers manage their orders directly through an app and in just a few minutes they can collect their orders at the counter, without any human interaction. The mobile application is not only dynamic; It allows the company to retain its customers by using discounts, bonuses and gamification. The third bet is a wide offer and, above all, affordable prices. During its landing in the US, the Chinese chain has decided to launch aggressive discounts that leave its coffees in less than two dollars, considerably below of what Starbucks charges for its drinks in the Big Apple. In fact there is who points that the American multinational’s strategy to stand up to its Chinese rival will be to move in the opposite direction: if Luckin focuses on app orders and low prices, Starbucks has proposed eliminate the premises of their network that only accept orders via app and for pickup due to their low “warmth”. The idea: return to the origin, to the traditional cafeteria experience. Does it only happen with Luckin? No. In fact Luckin is just one of many Chinese tea chains, hot potsdrinks… that are landing in the US to compensate for the changes in the Chinese market. How he slid TNWT in a recent analysis On the subject, there they find an excess of supply and an economy weighed down by the real estate crisis and weakened consumption, which leads them to look to the other side of the Pacific. One of the threats that its US competitors face is that this leap comes with aggressive tariffs. Gaining a foothold in the US market will not be easy. The Luckin case is a clear example. It has just opened its first stores in New York, but in front of it it has almost 17,000 establishments that Starbucks manages in the US. If the Chinese chain has demonstrated something, however, it is its resistance. In fact, it has managed to overcome the serious crisis it experienced in 2020, when an accounting scandal left it on the edge of the abyss. Since then it has not only managed to recover and grow. Now aspire to quote again in the USA. Images | Xataka In Xataka | China has just beaten the United States in the most unexpected fight: that of branded coffee shops

We knew that many use Starbucks as an office. In South Korea they lead to the printer, and the chain has said enough

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Enter a Starbucks store and meet several people installed with your laptop It is no novelty. The spacious tables, the plugs available, the air conditioning and, of course, the coffee, make these premises a habitual shelter for students and remote workers. A printer on the table. A cardboard separator to isolate itself from the world. A strip to plug laptop, mobile and tablet at the same time. All this has been seen – and is still seen – in some South Korea Starbucks. The phenomenon has shot, and therefore, the chain has decided to intervene. New standards in South Korea. The new regulation is clear: no printers, multi -mitoms or accessories that convert the premises into a portable office. This is what The Korea Herald collects itwhich adds that it is also not allowed to occupy several chairs or leave belongings for hours to “reserve” table. The original poster (left), the translation of Google Lens (right) From this week, employees have instructions to warn those who fail these guidelines. The measure communicates with a poster that already decorates dozens of stores in the country. And although the message is illustrated with a smiling bear, the background has nothing tender. What does it mean to be a 카공족. In South Korea, 카공족 It is the name that receives “the tribe that studies in coffee.” The term combines the words 카페 (cafeteria) and 공부 (study), and is used to describe those who spend hours working or reviewing notes in premises such as Starbucks. What began as a practical and punctual solution has become such a widespread custom that now raises a dilemma: is it a legitimate use of space or silent abuse of the common environment? The social reaction. The Donga Ilbo medium collects The testimony of Professor Seo Kyung-Duk, from the Sungshin Women’s University, who shared the image of the computer equipment with the cardboard separator: “It looks like a private office.” SEgún explainedeven the foreigner who accompanied him was bewildered: “How can anyone mark their territory in a public place like a cafeteria?” He asked, surprised. Some of the images that account for 카공족 in South Korea The author of the photo explained that this person did not return in all the time he remained in the store: “I spent three hours there and did not return once,” he said. Meanwhile, Asia Economy echoed some Of the most repeated reactions among users: “There is not even room to have coffee because of the 카공족,” said a person. Another ironized: “They leave their things and they will eat … is this a ‘Study Café’ or what?” Why have Starbucks Korea acted now? Starbucks has not acted in whim. According to the company, what is at stake is the collective experience. When a large table is occupied for hours by a single person, or when a client is absent leaving their objects as a reservation, the balance between those who enter, consume and leave, and those who turn the place into a personal office. There is also a commercial logic. Maintaining rotation is key in a business where each table counts. If someone occupies a seat for four hours with a single coffee, the impact is not anecdotal. If not, tell the owners of coffees in Barcelona, They are applying their own formula “anti occupies terraces”. Images | Athar Khan | 서경덕 (Via Donga Ilbo) In Xataka | We already know who is going to drink all the coffee that Brazil will not export to the US for the tariffs: China

The Starbucks CEO wants everyone to work to the office. It is easy for him because he can go in private jet

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Back to Starbucks. That is the name that Brian Niccol, the current of CEO of the popular coffee shop chain, put To the plan to revitalize the company. It is an ambitious plan and that, among other things, has meant a change of course as far as teleworking is concerned. Since 2023, Starbucks workers have maintained a hybrid format Three days in the office, two at home. That will end because, soon, will be four mandatory days. It is a novelty that is seen very differently when you go to the office in private Jet, of course. Let’s start at the beginning. Of coffee tacos. Niccol was CEO of Taco Bell until 2018. The headquarters of this company is in Irvine, California, 15 minutes by car from Niccol’s house in Newport Beach. In 2018 he left Taco Bell to exercise as CEO in Chipotle, whose headquarters was in Denver, 1,600 kilometers from his residence. Three months after assuming the position, Chipotle changed its headquarters to Newport Beach affecting 400 people in the process. In 2024, and after revitalizing Chipotle, Niccol assumed the CEO of Starbucks With conditions that did not go unnoticed. Elon Musk vs Jeff Bezos: The Galaxies War Brian Niccol | Image: Starbucks To the ophi yes, but I don’t move. The Starbucks headquarters and therefore the workplace of its CEO is in Seattle (Washington). As a company employee, he also applied the policy of going at least three days to the office. The distance that separates the headquarters from your home is 1,600 kilometers, but that is no problem because The offer contemplated that “you will not be asked to move to the headquarters of the company”. So… It will not go by car, clearly. They are about 19 hours of journey, According to Google Mapsbut fortunately the job offer established that Niccol could dispose of the company’s private jet for “business -related trips according to the company’s travel policy, travel between its city of residence and the headquarters of the company in Seattle, Washington and its personal trips according to the company’s policies, up to a maximum amount of $ 250,000 a year.” Image | Starbucks Three four days. Now that we know the context, we will surely see in another way The letter that the CEO has recently published. In this text, Niccol explains that from next fiscal year employees will have to go to the office four days instead of three. Specifically, from Monday to Thursday. At the moment, this dynamic will affect the regional offices of North America, the Toronto support centers and, of course, the headquarters in Seattle. If you are a boss, to the office. In February, Starbucks asked the VP level team and managers who worked in Seattle and Toronto. Now that requirement will also apply to support centers, whose leaders will also have to move to these cities. And all this why? According to Niccol, the reason to reestablish this office culture is that “we work better when we are together. We share ideas more effectively, we solve difficult problems creatively and move much faster.” Between lines can be read that an increase in productivity is sought. The CEO affirms that it understands that not everyone will agree with this measure, “but as a company based on the human connection, and given the magnitude of the change we have ahead, we believe that this is the right path for Starbucks.” So clear it has that the future goes through the office that, in its own words: “If you decide to leave Starbucks for any reason, we respect it. To support those who decide to” leave “, we are offering a unique voluntary output program with a cash payment for the partners who make this decision.” Two rhythms. This is not a problem for Niccol (to which this policy should also be applied). Has All the company’s resources at your disposal To travel and, according to a company spokesman, a house has been bought in Seattle. This already shows that The return to the office is made at two speeds: that of employees, which can be forced to move to a more expensive city, give up promotions or even leave the company; and that of the senior executives, who can afford to travel in a private jet or buy a house in the city that proceeds. Cover image | Tr In Xataka | Starbucks made a very strong bet in China to continue growing. Tariffs threaten to take it ahead

The commercial war between China and the US has had an unexpected injury: Starbucks

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Just a year ago we talked to Xataka of the delicate moment through Starbucks. A year later, the world’s largest coffee chain deepens the crisis of its business model, now trapped between those structural problems, which came from afar, and a new problem: Trump’s tariffs. The current situation. Starbucks accumulates five consecutive quarters of falls In sales in the United States. Only in the last quarter, transactions fell 4%, although average customer expenditure increased by 3%. It does not matter: that increase is insufficient to compensate for the loss of traffic in coffee shops if customers look for cheaper alternatives like Dunkin ‘or McDonald’s. Why is it important. The company depends on coffee imported from more than 30 countries, and with The new 10% tariffshis commitment not to raise prices in 2025 further complicates the recovery of his margins, which were already down. The context. What for years was an unstoppable growth story, tripling its premises from 2012 to exceed 40,000 in 2024, it has now become a struggle to maintain its profitability. The United States, its main market, is saturated. And China, its great growth commitment, has its own problems. The US market shows clear signs of maturity with a growth of premises that has slowed down. In China, although it has almost doubled its stores in five years, income has stagnated, with flat interannual sales (0% last quarter). The latter has a lot to do with Nationalist consumption That put local alternatives before. The threat. Beyond tariffs, Starbucks has other open fronts around its business model. Between the lines. The new CEO Brian Niccol, signing of Chipotle with music from Fanfarrias, has launched the Plan “Back to Starbucks“To recover the essence that made the company great. However, he recently recognized that “our results of the second quarter are disappointing,” although he also said he “confidence that our plan is the right strategy to turn the business.” The unexpected turn. Despite all these problems, Niccol maintains its commitment to freeze prices in 2025, a brave decision (and we will see if reckless) when their competitors will surely increase them due to the impact of tariffs. It is true that this strategy could give it competitive advantage if it manages to control its margins on other ways, but it is also that these margins are increasingly constrained. In figures. The financial situation explains the deterioration of the business: The actions almost 30% have fallen From the announcement of tariffs. Its adjusted operational margin of the last quarter was 8.2%, quite below the expected 9.5%. The benefits collapsed more than 50% compared to the previous year, to 384 million dollars. The company accumulates 23,000 million net debt, with a indebtedness ratio superior to triple. The latest. Starbucks has already implemented several measures to contain costs: Elimination of extra charges for alternative milks. Reduction of customization options. Product discontinuation. Free recharges offer for those who consume in their establishments. The question now is whether these measures will be enough in the face of an increasingly hostile economic environment, where consumption habits are changing and the experience that previously defined Starbucks no longer seems sufficient to justify their prices. In Xataka | Specialty coffee is expensive and there is something that increases it even more: to remove caffeine Outstanding image | Xataka

Starbucks continues to close stores in the United States in 2025

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Coffee giant Starbucks faces challenging year in 2025, marked by the closure of several stores in the United States. The company has attributed this decision to the decrease in customer traffic and worker discomfortwhich have put pressure on its operations and finances. ScrapeHero has indicated that Starbucks operated more than 17,000 authorized and operated stores in the North American country before the end of 2024. However, the company faces difficulties derived from a the lingering effects of the COVID-19 pandemic, decreased foot traffic in certain key locations, and worker strikes demanding better working conditions. These issues led to the closure of more than 60 stores in 2024 and continue to influence the company’s operations in 2025. Rachel Ruggeri, Starbucks’ chief financial officer, highlighted in the preliminary 2024 financial report: “Despite our increased investments, we were unable to change the trajectory of our declining traffic, putting pressure on both our revenue and bottom line.”. At the end of this month of January, one of the Starbucks stores in New York will close.Credit: valerii eidlin | Shutterstock Besides, Ruggeri mentioned that Starbucks is developing a recovery plan that will include an increase in dividends to generate confidence among shareholders and ensure the sustainability of the business. Stores closed in 2025 Data from Usearch and StarbucksEverywhere, a blog specialized in the coffee chain, have identified the following stores closed or with scheduled closures: California: 99 Jackson St, San Francisco (will close February 9). 1799 Fulton St, San Francisco (closed). 2222 Fillmore St, San Francisco (closed). 145 W. Santa Clara St, San José (closed). New York: 166 7th Avenue, Brooklyn (will close January 30). Pennsylvania: 1851 Bethlehem Pike, Flourtown (closed). Maryland: 1046 W Patrick St, Frederick (closed). Texas: 1201 Elm St, Dallas (closed). Oregon: 1001 N Arney Rd, Woodburn (closed). 12000 Southeast 82nd Avenue, Happy Valley (closed). Kansas: 10201 W 75th St, Overland Park (closed). Illinois: 751 N Milwaukee Ave, Wheeling (closed). A Starbucks representative explained to SFGATE that “as part of Starbucks’ standard course of business, we continually evaluate our business to ensure a healthy store portfolio.” Impact and Projections Store closures not only affect consumers who lose convenient access points, but also employees who face losing their jobs. This phenomenon also highlights the challenges that food and beverage chains face in a changing and competitive economic environment.. In addition to the closures, Starbucks plans to reduce new store openings in 2025. According to statements from the CFO last October, this will allow “accommodating a redesign, while also unlocking capital to support our broader change.” Looking to the future As Starbucks works to overcome these challenges, its success will depend on its ability to adapt to new market demands and respond to the concerns of its workers. With strategies in place and a renewed focus on efficiency, the company seeks to regain its positioning in the competitive coffee sector. Keep reading: ° Starbucks introduces new spring-inspired coffees and creamers° Starbucks changes the rules to be able to be in its cafes° Goodbye to Wifi and free bathrooms?: Starbucks announces a new Code of Conduct

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