Starbucks to invest more than ¥300M in China store experience in new fiscal year

Starbucks China said Wednesday it will invest more than 300 million yuan (US$44.9 million) in its 2027 fiscal year to upgrade customer service across its stores, as the coffee chain looks to sharpen its in-store experience in one of its key markets.

The investment will fund additional staff during peak hours and at its Reserve bars, upgrades to digital systems and core equipment, and facility renovations at about 1,000 stores, the company said. Starbucks said the spending is aimed at improving coffee quality and strengthening connections with customers.

A Starbucks staffer serves a customer at a Starbucks Reserve store in this file photo. Courtesy of Starbucks China

“In the new fiscal year, we will continue to direct resources to the store front, supporting our partners to focus on taking care of every cup of coffee and every customer,” said Molly Liu, chief executive of Starbucks China.

Starting in January 2027, the company plans to roll out in phases a smart mobile point-of-sale device with more than 70 new functions, which Starbucks said will help staff better understand customer preferences.

The company also said that from Oct. 22 it will begin requiring customers to make a purchase to use seating at its stores nationwide, with notices posted in stores. Starbucks said staff will follow consistent service guidelines and communicate in a friendly manner, and will prioritize assistance for customers who need help, such as pregnant women and people with limited mobility.

A staffer prepares food at the Starbucks Reserve Roastery in Shanghai. Zhang Yu

Starbucks, which has operated in China for more than two decades, has faced intensifying competition from lower-priced local coffee chains in recent years. The company has been investing in store renovations and service improvements as it seeks to differentiate itself in the market.

The company has established the Starbucks China Innovation and Technology Center in Shenzhen in a bid to drive its transformation into a digitally powered, experience-led coffee chain. 

A rose-adorned entrance welcomes visitors to a Starbucks store at UpperHills in Futian District, where the space has been transformed into a spring-themed "rose garden." Zhang Yu