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Friday, 09 November, 2012, 12:20pm

Is Starbucks overcharging? Chinese coffee drinkers ask

BIO

Amy Li began her journalism career as a crime news reporter in Queens, New York, in 2004. She joined Reuters in Beijing in 2008 as a multimedia editor. Amy taught journalism at Southwestern University of Finance and Economics in Chengdu and started an environment blog, Green Bullet, before joining SCMP in Hong Kong. She is now an online news editor for SCMP.com. Amy can be reached at chunxiao.li@scmp.com.

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Beijing’s Starbucks lovers are wondering why they are paying 22 yuan (HK$27.5) for a cup of regular coffee that only sells for 11 yuan in San Francisco.

In a heated online discussion on China’s twitter-like service Weibo, coffee drinkers are asking why the same cup of coffee costs so much less in the United States.

While the tariff imposed on foreign companies in China might contribute to the higher price, some also believe the coffee chain charges more simply to satisfy the vanity of Chinese buyers.

Drinking Starbucks coffee is generally seen as sophisticated in China, where traditional tea is more popular and affordable. With Starbucks’ success in recent years, more young people have become loyal Starbucks drinkers. Young people also love to share their Starbucks photos online.

On Weibo, netizens criticise those who buy Starbucks coffee for the sake of its brand.

“After a cup of Starbucks, do you suddenly turn into a better person?” said a Weibo user.

“I drink my one-yuan soy milk everyday and I feel proud of it,” said another user.

It’s not just Starbucks whose pricing practices are under attack. People are also asking why Haagen-Dazs ice cream sold in China is three times more expensive than the US.

Neither Starbucks nor Haagen-Dazs has responded to the controversy.

My advice for grumpy Chinese coffee drinkers? If you don’t like the price then don’t buy it.

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This article is now closed to comments

corygoldblatt
I can't believe that after reading ALL these comments that not a single person commented about how much Mainland Chinese coffee bars charge for their coffee. Starbucks is cheap considering that most of the coffee houses in China (I live in Chengdu) charge 30+RMB for a horrible cup of coffee. Starbucks is not the greatest but it definitely isn't the worst. They have wifi included and the service is pretty decent. I get a cup of black coffee and the small costs 17 RMB. There are several coffee chains in this city that sell a cup of coffee made of beans from Yunnan that is just awful.
Snake Eyes
You don't pay for the coffee, you pay for the rent to sit and relax. But yes, Starbucks is too expensive.
mrlcooper
Presumably no-one is forced to pay?
I used to think Starbucks made the lousiest chain store coffee in the world, until I moved to HK and discovered Pacific Coffee.
nylt
Is that the attitude of Starbucks or is it merely its author. I'm sure that Starbucks would like to hire you first chance they get.......................
markshaw
It's not only the foreign companies guilty of this. An affluent city I travel to frequently, Quanzhou in Fujian has a coffee shop culture and has lots of independent coffee shops selling coffee at RMB30 for a small cup of Illy. Or try the smaller airports in China where there are usually no Starbucks and they charge RMB 58 for a small hot latte.
yogimo
First of all, I think the Starbucks coffee is actually quite lousy, compared to buying quality beans, grinding them yourself and then enjoying a good cup of brewed coffee yourself.
My guess is that they simply have to charge more, as people tend to drink the coffee inside the place and occupying the seats for 2 hours plus, instead of taking it to the office.
The rest is supply and demand: If people pay it, why charge less?
SpeakFreely
China trade surplus over USA is around us$400 B a year so if you divided that evenly over China population of 1.3B will be Usd 307 per person. If all Chinese are not counterfeiting US goods but just buying the real stuff, do you think they almost will consume at least $307 per person per year? So why complaint to just pay a bit more for a cup of coffee? Lets me fair.
SpeakFreely
bTW Amy, there is a imitation of Starbucks In BJ I saw the logo is green and almost looks like Starbucks , you probably know what I meant, their coffee is not cheap but quality and service is no good either...so I won't compliant about Starbucks as I assume at least they are not poisoning me with fake coffee...haha
Camel
Why they charge for a cup of coffee in Mainland China more than in San Frisco?
Well, Starbucks has their own coffee fields somewhere in South America and Out-Sourcing for Coffee around the world becomes less. The Coffee in the US is mostly shipped from the coffee fields of Star Bucks in that local area. Coffee in China is imported from many other countries with coffee fields. Star Bucks is not using Chinese Coffee Beans (there is only Hainan Coffee which is terrible). With tax, customs and middle chain service companies you can add up to come to this price. Isn't this logical Mrs. Li?
SpeakFreely
You forgot about high rent that often accounts for 30% of operating costs. We are ripped off by our own landlords in HK n China.

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