Starbucks' New Breakfast Line Struggles with High Prices
When you’re hunting for a cheap, fast breakfast that gets you through the morning, $50 for coffee and a pastry doesn’t usually make the shortlist. Yet that’s exactly what Starbucks is now offering in China with its new breakfast menu, joining other global chains in a competitive morning meal race—but facing skeptical reactions from both consumers and industry watchers.
The quick answer? Starbucks has introduced four breakfast combos in China priced from 15 to 20 RMB (about $2 to $3 USD each), but the total cost with a coffee comes to roughly 50 RMB (around $7 USD)—far higher than local fast-food rivals like McDonald’s or KFC, whose breakfast meals start at just 6 RMB (about $1 USD).
Starbucks Launches Four New Breakfast Combos in China
According to reports, Starbucks has rolled out four new breakfast options in China, each paired with coffee and priced individually between 15 and 20 RMB. This marks the first time the coffee chain has specifically introduced new products for the breakfast period, although it has always offered a range of food items throughout the day. The new breakfast sets aim to capture the early morning market, a time slot traditionally weaker for coffee shop revenues.
Price Comparison: Starbucks vs. Local Fast Food
While Western fast-food giants like McDonald’s and KFC offer breakfast combos starting as low as 6 RMB (approximately $1 USD)—typically including a burger and coffee—Chinese fast-food chains serve meals such as soy milk, congee, and dim sum for 6 to 12 RMB (about $1 to $1.70 USD). In contrast, Starbucks’ new breakfast sets, when combined with coffee, reach around 50 RMB (about $7 USD), maintaining the brand’s premium positioning. This pricing strategy places it well outside the range of most everyday breakfast consumers in China.
Industry Skepticism Over Premium Pricing Strategy
Coffee professionals and shop owners in China have expressed doubts about the initiative. One-based café operator noted that morning sales are typically weaker than afternoon ones, and that while Chinese consumers value breakfast, they strongly prefer traditional Chinese options over Western pastries and coffee. The high price point of Starbucks’ breakfast offerings is seen as a potential barrier, with many fearing a “” (high price, few buyers) scenario. The concern is that the premium pricing may alienate cost-conscious customers, especially when more affordable and culturally familiar alternatives are readily available.
Why Morning Sales Are a Challenge for Coffee Shops
Across the coffee industry, the morning period is a critical but challenging sales window. Although it’s when many customers seek caffeine, coffee shops often struggle to convert those visits into profitable transactions. The appeal of Western-style bakery items remains limited compared to the deeply rooted habit of Chinese breakfast foods like congee, buns, and soy milk. For Starbucks, introducing new breakfast items is an attempt to boost early-hour traffic, but the premium pricing and cultural preferences present significant hurdles.
Frequently Asked Questions
What are the new breakfast items from Starbucks in China?
Starbucks has introduced four new breakfast combos in China, each priced between 15 and 20 RMB (about $2 to $3 USD). Each combo includes a coffee and is meant for the morning meal period. Exact food items were not specified in the report.
How much do the Starbucks breakfast combos cost with coffee?
With the addition of coffee, each of the four new breakfast combos totals around 50 RMB (approximately $7 USD), making them considerably more expensive than local fast-food options.
How do Starbucks’ breakfast prices compare to McDonald’s or KFC?
McDonald’s and KFC offer breakfast combos starting at just 6 RMB (about $1 USD), which include a hamburger and coffee. In comparison, Starbucks’ breakfast meals with coffee are priced around 50 RMB (roughly $7 USD).
Why are industry experts skeptical about Starbucks’ breakfast push?
Experts doubt the appeal of Starbucks’ premium-priced breakfast sets in China, where consumers generally prefer affordable, traditional Chinese breakfasts. The high price point may limit customer interest, leading to concerns about poor sales performance during the already weak morning sales period for coffee shops.
What time of day do coffee shops typically see lower sales?
Coffee shops generally experience lower revenue in the morning compared to the afternoon. Despite morning foot traffic seeking coffee, profitability is often lower due to consumer preferences and price sensitivity.
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