Starbucks latte illustration
In China, a Starbucks latte costs nearly $1 more than in the United States, and the rent accounts for 26% of the price of a Starbucks latte in China.
The price of Starbucks latte in China is 30 yuan, or about US $4.8. the specific composition is: rent US $1.25, accounting for 26%; profit US $0.85, accounting for 18%; store operating costs US $0.72, accounting for 15%; raw materials US $0.64, accounting for 13%; Labor costs US $0.41, accounting for 9%; general administrative expenses US $0.28, accounting for 6%; tax revenue, US $0.24, accounting for 5%. The cost of equipment is US $0.17, or 4%, and other operating expenses are US $0.23, accounting for 5%.
Brands such as Starbucks and Haagen-Dazs have set higher prices for Chinese consumers to show a higher-quality image and create appeal to pompous consumers.
'Product prices vary from market to market,'a Starbucks spokesman said.'in China, customers prefer stores with more seats and larger areas, which have higher rent costs and therefore higher prices,'a Starbucks spokesman said.
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