How Starbucks’ Misguided Positioning Misled China’s Cafés

Published: Nov 08, 2026 Author: World Gafei Last Updated: Nov/08/2026 128 views

Starbucks never truly relied on the 'third space' model in the U.S.—yet it became China’s dominant café blueprint. Here's why that strategy failed.

In cities across China, independent cafés continue to pour money and square footage into recreating what they think made Starbucks successful: a cozy, lingering-friendly 'third space.' But while these cafés invest in slow design and lounge vibes, the actual Starbucks business model—both globally and locally—has quietly shifted away from that ideal. The result? A lot of beautiful, underperforming spaces. So what really drives Starbucks’ success—and why isn’t the third space the gold standard it’s made out to be?

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