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 plans food safety checks in China after expiry violations

Published 12/13/2021, 03:12 AM
Updated 12/13/2021, 10:34 AM
© Reuters. FILE PHOTO: A Starbucks sign is shown on one of the company's stores in Los Angeles, California, U.S. October 19, 2018.  REUTERS/Mike Blake/File Photo

BEIJING (Reuters) -U.S. coffee chain Starbucks (NASDAQ:SBUX) on Monday apologised and said it would carry 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.

The Beijing News newspaper, in what it described as an undercover investigation, said the incidents occurred at two stores in the eastern Chinese city of Wuxi.

The incident became a trending topic on China's Twitter-like Weibo (NASDAQ:WB) social media site after the report was published and Starbucks initially said it had shut the two stores and was carrying out an investigation.

Later on Monday it said it had found that the two stores had indeed committed violations and that the company had not sufficiently paid attention to food safety standards.

"We sincerely apologise to all of Starbucks' customers," it said in a statement on its official Weibo account.

The Wuxi's Market Supervision Administration also said in a statement late on Monday that after conducting investigations on the two stores involved in the incident, it also carried out checks on all 82 Starbuck stories in the city, finding 15 issues in total, including employees not wearing work caps and disinfections records not being complete.

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

Some targets, such as Canadian winterwear brand Canada Goose which drew complaints over its refund policies, have been subjected to government reprimands, while Chinese brands such as milk tea chain Nayuki have also drawn public attention.

China is the largest market for Starbucks outside the United States with 5,360 stores as of Oct. 3, the firm's latest earnings report showed.

The Beijing News report said one of the Starbucks stores used expired matcha liquid to make lattes, while another had put pastries up for sale that were meant to be thrown away.

© Reuters. FILE PHOTO: A Starbucks sign is shown on one of the company's stores in Los Angeles, California, U.S. October 19, 2018.  REUTERS/Mike Blake/File Photo

As of Monday afternoon, the topic of Starbucks' response to the Beijing News report had received more than 50 million views on Weibo. Commenters expressed both disappointment and worries over more widespread problems.

"If Starbucks is like this, the other shops really worry me," said one Weibo user named Revario. "They suffer the scrutiny because it is a foreign brand."

Latest comments

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.