moondog

Well, you can't give them a try here any more because they threw in the towel

But, lots of normal Chinese restaurants in NorCal and Socal make far superior versions of both for less money.

moondog

The following article is a month old, but I didn't hear about the news until people started complaining about the lack of biscuits in the new stores:
https://www.cnn.com/2023/08/22/busin...hnk/index.html

Oh, well.

(I grabbed these images from Google because I was curious about the importance of biscuits to the brand...maybe not so high on the list any more.)

Eta: I went to the grand opening of the Xujiahui Popeyes yesterday. The restaurant is clean and the staff, full of enthusiasm. I thought the food was kind of disgusting, even though from a qualitative standpoint, better than KFC or Dicos. Here are a few pics.


I'm starting off with this napkin photo because it relates to my logo evolution image above. Basically, they're sticking with the classic style, but have omitted one word.


They built up hype by using a significant amount of outdoor advertising.


I passed by on Monday night while they were preparing for the Tuesday launch.


The sandwich tasted as bad as it looks and I lack words to describe those nugget things. I mean, the chicken itself was moist and tender, but the batter was uncharted territory for my pallette.

Jiatong

NFL brand in china;

The Frankfurt NFL game last night had chinese commentator's, (Chiefs vs Dolphins) tv feed from NFL network, only a couple commercials in 1st quarter then last week highlights in the commercial slots.
Used a tv box with free VIP sports app, station was 'polar lights.' only english was the referee calls on penalties...

Ads for the Frankfurt NFL game next sunday , week 10, will be, Colts vs Patriots at 10:30 pm in china. probably with the same chinese commentators who explain NFL football in chinese.

travelinmanS

NFL in China has been available with Chinese commentators for years. The NFL has a deal with Tencent Sports where they show a few games a week for free. Many other games are available if you're a VIP customer of Tencent Sports, including the English feed.

Jiatong

Thanks, Old school here, I like free NFL 'live' games, was amazed they were using NFL network as the free tv feed. but it was the Frankfurt game! I'll find Tencent on this tv box.

lsquare

I had no idea there was even a market for NFL games in China.

Jiatong

Yep, probably true now that foreign western tourism is residual in the mainland, MLB has had better luck in other Asian countries, ie Japan, Ive noted that in China, when i wear my NFL logo shirts, the Chinese blur it with the Nba.

PES_B1

I recently visited China for a brief holiday and indulged in coffee and milk-based drinks from various stores, often 2-3 times a day due to their affordability. This experience illuminated why Starbucks is losing market share there. The brand's premium image and pricing model are proving to be its downfall, especially given that most Chinese consumers prefer drinks over coffee. In 2023, with aggressive price cuts from competitors like Luckin Coffee and Cotti Coffee, the situation has intensified. Both are offering every coffee product on their menus for less than 10 RMB, and Cotti even prices everything at just 8.5 RMB.

Starbucks can still compete on the quality of its environment, as most Cotti and Luckin outlets have fewer than 10 chairs and less than four staff members per store. However, unless someone wants to spend hours working in a coffee shop, I don't see how Starbucks can maintain its appeal. Both Luckin and Cotti are continually introducing innovative products. A few months ago, for instance, Luckin introduced a latte with Maotai, while Cotti added whole grains to its latte. Meanwhile, Starbucks has largely maintained the same menu for years. With such a lack of menu innovation, it's not surprising that Starbucks is losing market share.

moondog

What's your source for this claim? I don't care for coffee myself, but I've seen no evidence that Sbux is losing market share.

travelinmanS

You haven’t noticed all the Manner, M Stand, Lukin etc that have sprung up in shanghai over the last 5 years? Before that Sbux was basically the only game in town, now their share is slipping as it’s being spread amongst all those brands. They were also much more impacted by the lockdowns than others due to their in store customer model versus delivery focused. Lost something like 55% year on year sales at some point in 2022. This year they tout their 5% growth over last year in China….so we know what that means.

They change their top management in China on the regular now as they can’t seem to figure out how to arrest their decline in market share. Their newest plan is to invest in 1000 more stores around the country in lower tier cities. Maybe it’ll work but to me it feels like a Hail Mary.

YariGuy

Starbucks is definitely losing share.

Looking solely at Luckin, their revenue increased 88% to $855 million in 2023Q2 from 2022Q2. Starbucks revenue increased 51% in a similar period, to $822m (yes, lower than Luckin).

narvik

If Starbucks closes down in China, I won't shed a tear.
RMB 32.00 for a coffee or whatever they charge? What a ripoff!

travelinmanS

This is what the Starbucks full fiscal year report says about FY2023 in China:

China comparable store sales increased 2%, driven by a 4% increase in comparable transactions and 2% decline in average ticket

A 2% increase in revenue over last year when seemingly half the country was locked down isn’t very inspiring. Commodity prices, especially coffee, and much higher than last year so I’d think this revenue growth is just them passing along cost increases (or trying).

They are in trouble long term in China but I think we all pretty much know that.

moondog

They are still the KFC of coffee shops. While Tim's might well be able to get into lesser malls, Starbucks will continue to have an advantage in premium office buildings, and those 1000-seat reserve stores are simply out of budget for everyone else.

Tangentially, I'm somewhat dismayed that closed-down restaurants (that used to serve food that we might like) have been replaced by independent coffee shops, which are basically meeting spots.

PES_B1

Starbucks' success in China isn't solely due to its coffee, which, considering the price point, isn't particularly exceptional. Rather, what appeals to the Chinese market is the concept and ideology of a Western, relaxed, and calm work lifestyle. This includes the idea of working on a MacBook in Starbucks, perceived as a premium way of life. This approach, rather than the coffee itself, is what has enabled Starbucks to being so successful in the past.