Starbucks China ends "free seat reservation" in about 8,000 stores
Fortune
10-24 05:26
Ai Focus
Starbucks China has stated that customers will now need to make a purchase before they can sit down in the stores, and this rule applies to approximately 8,000 of its stores across mainland China. The company also mentioned that it will invest over 300 million yuan to upgrade the in-store experience. This move comes at a time when Starbucks is facing competition from companies like Luckin Coffee in China, and after having sold 60% of its stake in its Chinese business.
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Looking for a seat at Starbucks near your home in China? Then just place an order first.

Starbucks China now requires customers to purchase goods before sitting in their cafes, a rule that applies to approximately 8,000 of its stores across mainland China. (However, the company stated in a notice on October 21 that certain customers, such as pregnant women and those with mobility issues, will still receive "priority support.")

Social media reactions to this measure were mostly positive. A Weibo user wrote on a platform similar to X: “Starbucks is in the business of selling drinks, not providing free study spaces.” “Seats are resources provided for consumers, and they should not be occupied unconditionally.”

Starbucks China also stated that as part of a broader 'Third Space Initiative', the company will invest over 300 million yuan (44.9 million US dollars) to upgrade the in-store experience. This investment includes adding more staff during peak hours.

At the time of this change, Starbucks was facing increasingly fierce competition in China. In 2022, Luckin Coffee, another coffee chain brand, surpassed Starbucks in the number of stores; Luckin also became the first coffee brand in China to reach 10,000 stores. This company, headquartered in Xiamen and founded in 2017, built its business on affordable coffee and mobile ordering, and won the favor of younger consumers.

Starbucks generated $3.6 billion in revenue from the Chinese market during its fiscal year 2021. In the following years, due to disruptions caused by the COVID-19 pandemic and new competitive pressures, revenue declined; Starbucks reported that its revenue from the Chinese market was $3.2 billion during fiscal year 2025.

Starbucks ultimately decided to hand over some of its operations to other parties. In November 2025, the company announced the sale of 60% of its Chinese business to Boyu Capital, a private equity firm based in Hong Kong. Starbucks CEO Brian Niccol stated in a statement at that time: "We are making arrangements for this business to serve more customers, enter more cities, and strengthen our leadership in a vibrant and constantly evolving market." The transaction was completed in April 2026; thereafter, Starbucks no longer discloses data on its Chinese business separately in its financial reports.

If you want to sit down, you have to place an order first.

Starbucks stores around the world are trying to deal with people who occupy seats without consuming anything.

At the beginning of 2025, Starbucks revised its previous open-access policy. Under the old policy, anyone could enter the stores regardless of whether they made a purchase or not. At that time, a Starbucks spokesperson stated that the company would give priority to paying customers, and most other retailers already had similar regulations. The spokesperson also added that Starbucks hoped this move would create an environment where people felt welcome and safe within the stores.

In August 2025, Starbucks Korea also updated its policy, prohibiting customers from bringing large items into the stores. Previously, Korean customers had transformed Starbucks stores into remote working spaces, even bringing in desktop computers and printers. Starbucks Korea, which is controlled by E-Mart (a subsidiary of New World Group) and GIC (a Singapore government investment company), stated: "While we welcome customers to bring laptops and smaller personal devices, we ask that they refrain from bringing in desktop computers, printers, or other large items that may limit seat usage and affect the shared space."

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