Starbucks has found itself in hot water in China after an increase in prices "sparked an online uproar," The Wall Street Journal reports. It's just the latest setback for the major corporation in its "largest market outside of the U.S."
On Wednesday, Starbucks announced it had raised the price of certain food and beverages in China by 1-2 yuan (about 16-32 cents) for the first time in over three years, the Journal writes. The Chinese price hike follows increases in the U.S., as well.
Some users on Weibo, a Chinese social media platform, urged consumers to boycott the chain, with others claiming they'd instead opt for cheaper local brands. "There are so many coffee shops in China sourcing beans from all over the world. Why does one have to stick with Starbucks?" said one user, per the Journal.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
The beverage giant's controversial decision also unfortunately coincided with a recent scandal "in which staff from one branch reportedly drove away police officers eating at the store's outside dining area." Starbucks denies any such expulsion.
"In perfect hindsight, Starbucks should have waited before announcing the price increase," said consulting firm AgencyChina's Michael Norris.
The outcry against Starbucks "highlights a mix of challenges that foreign businesses increasingly face in the country: A rise of nationalistic sentiment among some consumers and fierce competition from up-and-coming local rivals."
On Thursday, the coffee company said the price hike was attributable to many factors, including operating costs. The increase might also serve as "a litmus test of tolerance for higher costs among consumers in the world's second-largest economy," where, unlike the U.S., "consumer inflation has barely budged" since COVID hit, the Journal posits.
Read more at The Wall Street Journal.
Continue reading for free
We hope you're enjoying The Week's refreshingly open-minded journalism.
Subscribed to The Week? Register your account with the same email as your subscription.
-
China: a superpower’s slumpThe Explainer After 40 years of explosive growth, China’s economy is now in deep distress — with no turnaround in sight
-
Retirees’ biggest surprise expense
Feature And more of the week's best financial insight
-
The United Auto Workers’ strike has put Democrats in a bind
Feature President Biden will have to pick a side in the dispute
-
China: a superpower’s slump
The Explainer After 40 years of explosive growth, China’s economy is now in deep distress — with no turnaround in sight
-
Is it time to end the China trade war?
Talking Point The U.S. aims to dial down China trade tensions after years of tit-for-tat tariffs and bans on advanced technology sales
-
Why shopping app Temu could be cause for consumer concern
Talking Point Are brazenly low prices enough to disregard dubious business practices?
-
Elon Musk used Starlink, which saved Ukraine, to thwart a Ukrainian attack on Russia's Crimea fleet
Speed Read
-
The daily business briefing: August 29, 2023
Business Briefing Transportation Department fines American Airlines $4.1 million over tarmac delays, glitch forces Toyota to halt production at its 14 Japan plants, and more
-
China: A slowdown sends tremors worldwide
feature Could this be good news for the United States?
-
Fitch downgrades US credit rating, citing 'repeated debt-limit political standoffs'
Speed Read
-
Bed Bath & Beyond relaunches online following bankruptcy
Speed Read
