Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Starbucks faces backlash in China over police incident at store

Published 02/15/2022, 04:22 AM
Updated 02/15/2022, 06:01 AM
© Reuters. FILE PHOTO: A Starbucks logo is pictured on the door of the Green Apron Delivery Service at the Empire State Building in the Manhattan borough of New York, U.S. June 1, 2016. REUTERS/Carlo Allegri

BEIJING (Reuters) - Starbucks (NASDAQ:SBUX) is battling its second bout of public fury in China in less than three months, after an incident described by the U.S. coffee giant as a "misunderstanding" at one of its stores sparked criticism from online users and state media.

The company came under scrutiny on Monday after a user on Weibo (NASDAQ:WB) said that a number of police officers had been eating outside a Starbucks store in the southwestern city of Chongqing before they were told by staff to move away.

The user's description of the incident quickly went viral on the Twitter-like platform, prompting the ruling Communist party's mouthpiece People's Daily newspaper to issue a commentary, in which it called Starbucks "arrogant".

Chinese consumers and media have become more aggressive about protecting customer rights and monitoring the behaviour of big brands, especially from overseas.

In December, Starbucks apologised and carried out inspections and staff training across all its roughly 5,400 stores in China after a state-backed newspaper said two of its outlets used expired ingredients.

Starbucks apologized on its Weibo account late on Monday for "inappropriate communications," saying the whole thing was a misunderstanding.

But it said staff had never chased away policemen or tried to file complaints against them.

It continued to face criticism online on Tuesday, with a few small companies announcing on Douyin, the Chinese equivalent of TikTok, that they would "boycott" Starbucks by forbidding employees from arranging meetings in or buying drinks from the shops of the coffee chain.

© Reuters. FILE PHOTO: A Starbucks logo is pictured on the door of the Green Apron Delivery Service at the Empire State Building in the Manhattan borough of New York, U.S. June 1, 2016. REUTERS/Carlo Allegri

However, Hu Xijin, a prolific commentator in China who is the former editor-in-chief of the Global Times newspaper, urged his Weibo users to see the Starbucks Chongqing incident as an accident and not more, adding that Starbucks's status as a foreign brand should not subject it to more criticism.

"China is a country that is open to the world," he said. "To label a mistake as arrogance is not conducive to the bigger environment of opening-up."

Latest comments

what's wrong with eating outside the store? "China is a country that is open to the world" ???
I think the tragedy just too much dramatisation by the china police because as I know all restaurant have some rules with starbucks rule that you can't sit if you don't buy & food from outside not allowed. It's common rules in restaurant bussiness around the world.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.