Starbucks sales are down 23%! Why don't young people like Starbucks?

On May 3, local time, Starbucks released key financial data for the second quarter of fiscal 2022 (for the 13 weeks ended April 3, 2022). International same-store sales fell 8 per cent due to the dismal performance of Starbucks' overseas markets and the sharp decline in its second-largest market, the Chinese market.

With the re-imposition of the blockade after COVID-19 's outbreak, same-store sales in China fell 23 per cent this quarter, hit by a 20 per cent decline in same-store sales and a 4 per cent drop in average customer unit prices. A Starbucks executive said 72 per cent of Chinese cities with Starbucks stores had an outbreak of the Omicron virus this quarter.

In the 13 weeks of the past second quarter, about 1/3 of Starbucks stores in China were temporarily closed or accepted only mobile orders and payment or delivery orders. Belinda Wong (Wang Jingying), chairman of Starbucks China, said: "due to the timing of the closure of Shanghai and the further recurrence of the virus in other cities, including Beijing, the group's third-quarter results are expected to be more affected." Although China's Starbucks will be more affected in the third quarter, Wang Jingying remains bullish on the Chinese market and says Starbucks is continuing to expand its stores in China.

According to figures released in the second quarter of fiscal 2022, Starbucks added 97 stores in China, and then focused on growth, and is expected to operate 6000 stores in China by 2022. At the end of the second quarter, US and Chinese stores accounted for 61 per cent of the group's global portfolio, including 15544 in the US and 5654 in China.

The decline in sales of Starbucks in China has sparked a heated discussion among netizens, so a topic on Weibo about "Why young people don't like Starbucks" rushed into the hot search. Some netizens think that product price and innovation, brand image and positioning, industry competition and consumption habits are the reasons for the decline, while some netizens think that there is no dislike, only no choice.

The price of Starbucks products has always been the most discussed place among mass consumers, and "expensive" has become a very representative label of Starbucks. For mass consumption, coffee brands with similar taste and more favorable unit price will certainly be chosen in the choice of the same drink. Nowadays, there are many chain coffee brands in the domestic market, and small independent cafes are all over the streets. Coffee has gradually penetrated into the hearts of the people, and people's views on coffee have gradually become more and more routine. Whether the coffee brand is famous or not is no longer the first step for everyone to choose coffee.

In the face of the current market innovation of coffee, Starbucks appears to be "lagging behind" in the launch of new products. Consistent replacement of flavor syrup = new products can no longer meet consumers' requirements for beverage innovation, and the appearance of finished products can not attract more consumers' attention.

Since December last year, things that have affected Starbucks' brand image one after another, especially food safety issues and eviction of the police, have not only attracted public opinion, but also lost more potential sources of customers. at the same time, it also makes a group of loyal consumers disappointed with the brand.

Also because of the impact of the epidemic, some Starbucks were unable to provide restaurant food, which affected sales. Starbucks has always been attracted by business people by providing a comfortable "third space". People choose Starbucks because of the environment for negotiation, work and study.

The inability to provide dining room means that the "third space" is gone, so even if Starbucks provides delivery service or food pick-up service at a single store online, it will reduce the consumption of a lot of business people, coupled with the positioning of its prices. unable to attract new consumers during this period.

With the exception of Starbucks, there has been a marked decline in sales in many coffee shops because the epidemic has changed people's coffee consumption habits. In the past, when people drank coffee, they used to sit down in a coffee shop and enjoy the relaxed atmosphere brought by the coffee shop environment and the healing brought by watching the barista brew coffee.

Now, in order to make it convenient for everyone to drink coffee without going out, there are many products on the market that can easily make a cup of coffee, such as freeze-dried, coffee liquid, hanging-ear coffee and so on. There are also many tutorials of DIY coffee online, which allows many friends who do not pursue fine coffee to set up a "coffee bar" at home, in addition to giving full play to their own mini-universe and improving their hands-on ability. The production cost will also be much cheaper than the finished product from the coffee shop.

With the widespread popularization and dissemination of coffee culture and boutique coffee knowledge, more and more partners want to further study coffee. There is demand, there will be supply, in addition to more and more choices of coffee beans, coffee brewing equipment is also more and more choices, whether coffee rookies or coffee researchers, can get their own coffee equipment.

The study of coffee knowledge and brewing skills is no longer just boring theories and words. With the research, understanding and description of more and more people, the brewing of coffee is no longer as complicated as people think. Enjoying the brewing process of coffee has also become a healing moment for many friends.

As netizens said, there is no dislike, only no choice. Coffee is already a daily drink, consumers may choose their own brand, the brand can also choose their own customers. Starbucks may not suit the tastes of some Chinese young people, and it doesn't represent everything.

Because not everyone knows coffee, Starbucks is still the best choice for many people who don't care about coffee / those who don't drink coffee, because the influence of the brand can make people who don't drink coffee. Starbucks can be associated with Starbucks when it comes to coffee, and people who don't know coffee have heard of Starbucks.

Photo Source: online Little Red Book Weibo

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