Do Long Customer Stays Hurt Starbucks Revenue in China?

Starbucks once expected China to become its second-largest market by 2014. But British media analysis raised doubts: Are Chinese customers really hurting Starbucks’ bottom line simply by staying too long—and spending too little?

Yes, according to the report. Chinese customers often stay for hours without buying anything, and when they do buy, their lower average spend means per-store revenue in China remains far below levels in the U.S. and other key markets where takeaway dominates.

Why Do Customers Linger So Long?

In a non-peak visit to a Starbucks in Changsha, over a third of the customers—more than 10 out of around 30—stayed for the entire morning. Four had not left by the time the reporter departed. Eight had coffee; two were using free Wi-Fi and hadn’t ordered anything. The store’s staff said they don’t push out non-paying guests, describing it as part of Starbucks’ service philosophy—even if it means taking up seats others might need.

The Role of Coffee Culture and Pricing

A Starbucks employee noted that in the U.S., a cup of Starbucks coffee often costs under $2—about the price of a local iced tea—so most customers take it to go. In China, coffee is comparably more expensive, and many visitors treat the café as a comfortable space to work or socialize. Free Wi-Fi from 7:30 a.m. to 4 a.m. also encourages people to stay longer, even if they don’t buy coffee. Staff sometimes offer free water to those not ordering anything.

Starbucks’ Expansion and Profit Expectations in China

Despite the concerns, Starbucks remains bullish on China. The company was opening a new store every four days and planned to grow from around 570 locations in 2014 to over 1,500 by 2015. At the time, CEO Howard Schultz predicted China would surpass Canada to become the brand’s second-largest market by 2014, behind the U.S., which had over 10,800 stores. Although China contributed less than 5% of global revenue, its store operating margins were around 22%—higher than in the U.S.—thanks to local pricing aligned with U.S. levels. In early 2014, Starbucks raised prices in China by about 1% on average. Schultz also remarked that while the core customer base was once expats and tourists, it had shifted to local Chinese consumers.

Frequently Asked Questions

Do Chinese customers really stay longer in Starbucks than those in the U.S.?

Yes. According to the British media report, it’s common for Chinese customers to stay for hours, and some don’t buy anything at all, unlike in the U.S. where most customers take their coffee to go.

How does customer dwell time affect Starbucks’ revenue in China?

Longer stays without corresponding purchases lead to lower revenue per customer. Since many Chinese customers sit for hours and some don’t buy anything, overall per-store sales in China are much lower than in markets where takeaway is the norm.

Does Starbucks try to stop people from using its cafés without buying anything?

No. Store staff said they welcome all customers and won’t ask non-purchasers to leave. During busy times, they may politely ask those not ordering to free up seats for paying customers, but otherwise, loitering is generally tolerated.

What is Starbucks’ store profitability like in China compared to the U.S.?

Despite lower overall revenue, Starbucks’ Chinese stores had higher operating profit margins—around 22%—compared to those in the U.S., largely because local pricing is similar to U.S. levels despite lower average spending per visit.

How fast was Starbucks expanding in China around 2014?

Starbucks was opening a new store every four days and aimed to increase its number of Chinese outlets from approximately 570 in 2014 to over 1,500 by 2015.

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