CCTV revealed the inside interview of Starbucks but was refused.

How much should a cup of coffee cost? White-collar workers who often spend money in coffee shops in Beijing may not have thought about this problem. However, CCTV reported this morning that the material cost of a Starbucks latte is less than 5 yuan. How much do we spend on coffee? (excerpt from Xinhuanet)

How much should a cup of coffee cost? White-collar workers who often spend money in coffee shops in Beijing may not have thought about this problem. However, CCTV reported this morning that the material cost of each Starbucks latte is less than 5 yuan.

CCTV reported in the morning that CCTV reporters interviewed and compared the prices of Starbucks lattes in Beijing, London, New York and Mumbai, the most expensive in Beijing and the cheapest in Mumbai, at more than 14 yuan. Although such a cup of coffee sells for more than 20 yuan in New York and London, Starbucks' high price in China also brings high profits.

According to Starbucks, profits in China and the Asia-Pacific region are 32%, while those in the Americas region are 21.1%, while those in Europe, the Middle East and Africa are only 1.9%. In an interview with the media, the CEO of Starbucks publicly said that the Chinese market is a high-margin market, and revealed that it will regard the Chinese market as the second largest market outside the United States.

Starbucks issued a written statement on high profits in China, saying that pricing was based on multiple factors such as raw materials and equipment and employee benefits, which led to wide differences in prices in Starbucks stores around the world. On the other hand, the high profit margin in China appears to be higher because the number of direct stores in China is relatively small, and the joint venture stores only include profits and do not take into account the costs previously invested.

In order to uncover the inside story of Starbucks' high profits, a CCTV reporter was refused to come to Starbucks Beijing for an interview, while the public relations manager of Starbucks China said that he could not give any data other than the statement.

Wang Zhendong, chairman of the Shanghai Coffee Professional Committee, said that the material cost of a medium latte is less than 5 yuan. The high price of Starbucks, in his view, stems from domestic consumers' superstition of foreign brands.