Data map: A Starbucks store in Guangzhou.

Photo by Cheng Jingwei

　　Zhongxin Finance, February 17th (Zuo Yuqing) Hot searches continue!

There's been a lot going on at Starbucks recently.

　　The turmoil of "a Starbucks store in Chongqing drives the police to eat a box lunch and maliciously complains" has not subsided. On the 16th, many consumers found that Starbucks has increased prices, and it quickly became the first topic of Weibo hot search.

The price increase may not be just once, but several times

　　"The price increase just announced today is only for some beverages and food." A Starbucks clerk at a store in Beijing told Zhongxin Finance that the price increase was based on a comprehensive consideration of market costs and other factors.

　　Zhongxin Finance noticed that Starbucks’ price increases on the “cusp” are generally 1-2 yuan.

For example, the large cup of ice American style has risen from 28 yuan/cup to 30 yuan/cup, an increase of 2 yuan.

On February 16, some Starbucks drinks and food products rose slightly.

　　"Although the increase is not big, I am extremely resistant in my heart." Many netizens said so.

Some netizens said that the increase was still within an acceptable range.

　　However, unlike the "quiet" price increases that consumers complained about, as early as February 1, Starbucks released a price increase signal.

　　According to foreign media reports, under the influence of the new crown epidemic and inflationary pressures, Starbucks in the United States has ushered in two waves of price increases in October last year and January this year to cope with the cost squeeze on net profit.

　　"There may be more than one, but several, price increases at Starbucks in 2022." After the first-quarter 2022 earnings report, Starbucks Corp. President and CEO Kevin Johnson said that Starbucks had "additional pricing action throughout the year." "plan.

　　Starbucks' performance report for the first quarter of fiscal 2022 shows that there are currently 5,557 Starbucks stores in China.

However, same-store sales in Starbucks China fell by 14% in the quarter, as the average customer price fell by 9% and the transaction value fell by 6%.

　　Zhu Danpeng, an analyst in the food industry, believes that Starbucks’ price increase has a certain degree of rigid demand, but at the same time its overall gross profit margin is relatively high, “The company itself can actually absorb the cost pressure, but as a company with many stores, it also I want to use its own brand effect and scale effect to further increase profit margins, so as to support the stock price."

Image Crisis under "High-end" Positioning

　　Starbucks, whose prices are rising, has its corporate image falling again and again.

　　In December 2021, two Starbucks Wuxi stores were exposed to privately changing ingredient labels and using expired ingredients.

Although Starbucks closed the two stores involved, in the follow-up investigation, the supervisory department found that in the other 82 Starbucks stores in Wuxi City, there were employees who did not wear work caps, items in the processing area were placed in disorder, and disinfection records were incomplete. 15 questions and more.

　　And only two months after the "gold standard" was "slapped in the face", Starbucks overturned again and ushered in a more serious image crisis.

　　On February 13, some netizens broke the news that Starbucks employees in the backstreet of Ciqikou, Chongqing, "affected the brand image" because the police on duty had dinner at the door, and drove away and complained to the police on duty.

The incident immediately caused an uproar on the Internet.

　　Although Starbucks China publicly apologized through its official Weibo on the evening of the 14th, saying that it was "miscommunication caused by inappropriate words".

But many netizens still have reservations about this: "The tone of your apology is too arrogant!"

Starbucks responds to the incident of "drive away the police".

　　Since entering the Chinese market in 1999, China has become Starbucks' fastest-growing and largest overseas market.

　　However, compared with Starbucks' decline in the Chinese market, the number of stores reported by China's local coffee brand Ruixing Coffee in the third quarter of 2021 is 5,671, which has exceeded the number of stores recently disclosed by Starbucks.

On February 15, Ruixing Coffee CEO Guo Jinyi said in an internal letter that the total number of new stores opened by Ruixing Coffee in January was about 360, setting a new record for the total number of stores opened in a single month.

　　In addition, many coffee brands such as McCafé, M Stand, Manner, and Tims Coffee are also eroding Starbucks’ market share.

　　Do you drink coffee now, do you drink Starbucks?

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