In spite of the complaints about the high price, Chinese still love Starbucks. A recent survey reveals that even though 52% of respondents believe Starbucks makes unreasonable profit in China, 46% of respondents claim that they will continue to drink Starbucks coffee.
Most Chinese consumers especially coffee shop owners say they understand Starbucks’ high price. They agree that the cost of a cup of coffee should include both material cost and operation cost. For retain chains like Starbucks, the cost of marketing, brand development, and management should also be considered. To some extent, Starbucks’ high price indicates its high approval rate among Chinese consumers, a Chinese scholar said. In addition, unlike US customers, Chinese consumers usually occupy a table for several hours. The low turnover rate further adds the cost.
Starbucks has more than 1,000 retail locations in China and is growing. It plans to have 1,500 locations by 2014 in 70 Chinese cities. To better serve the Chinese market, Starbucks added bakery and breakfast service in late 2012 and launched China-specific products earlier this year.