Starbucks Introduces Free Study Rooms Amidst Local Competition

Starbucks has introduced free study rooms in some of its stores across several provinces, aiming to provide a summer study space for consumers. The initiative, dubbed "Star Child Study Rooms," was announced on July 22 and has since been implemented in Guangdong, Guangxi, and Hainan. These study rooms offer free seating, power outlets, hot water, and stationery, with no mandatory consumption or time limits. However, the impact on foot traffic has been minimal, with many seats remaining vacant.

This move comes as Starbucks faces intense competition from local brands such as Luckin Coffee and Kedi. The coffee giant is attempting to reverse its declining fortunes through scenario reconstruction, price reductions, and market penetration into lower-tier cities. Last month, Starbucks reduced the prices of its non-coffee products, with the average price reduction for a large cup being around 5 yuan. However, this price reduction did not affect the core coffee products.

Starbucks is also accelerating the opening of new stores in lower-tier markets. As of March 2025, the total number of Starbucks stores in China reached 7,758, covering over 1,000 county-level markets, with 40% of new stores located in rural areas. In contrast, Starbucks has closed nearly 20 flagship stores since 2024, with half of these closures concentrated in the densely populated regions of Jiangsu, Zhejiang, Shanghai, and Guangdong, indicating a trend of "closing in urban areas and opening in rural areas."

These measures are making the once high-end coffee brand more accessible. In the increasingly competitive Chinese coffee market, "lowering its profile" may be Starbucks' strategy to stay competitive. The company is exploring more "interest-driven" scenarios in the future to enhance the "third space" experience, which could include more study rooms or other community-focused initiatives. This shift towards a more community-oriented approach could help Starbucks attract a wider range of customers and maintain its position in the market.