Starbucks China implemented a nationwide policy requiring customers to make a purchase before occupying seating areas starting October 23, following a similar approach introduced in its North American stores last year. The coffee chain emphasized that the rule aims to prioritize seating for those in genuine need, including pregnant women and individuals with limited mobility, while continuing to position its stores as social gathering spaces known as “third places.”

The new seating policy has generated considerable discussion on Chinese social media platforms such as RedNote, with some users expressing support for the measure, describing it as reasonable and overdue. The move comes amid a rapidly expanding coffee market in China, which now counts over 550 million coffee drinkers, according to research from Cannyin88.

Starbucks China’s updated policy is part of broader efforts to enhance its presence in the country. The company plans to invest more than 300 million yuan (approximately HK$352.3 million) in store upgrades and customer experience improvements during its 2027 financial year, which began on September 28.

In April, Starbucks finalized a joint venture agreement with private equity firm Boyu Capital, which now holds a 60% stake in the entity managing Starbucks’ retail operations in China. The joint venture currently runs about 8,000 Starbucks outlets across the mainland and aims to expand this network to 20,000 stores over time. This expansion plan faces competition from domestic chain Luckin Coffee, which operates over 36,000 locations in China and Hong Kong, making it the largest coffee chain in the market.

Industry analysts note that “free-seat hogging” is a visible challenge but point to larger competitive pressures affecting Starbucks in China. Fu Yifu, a special research fellow at Su Merchants Bank in Nanjing, said that while the seating policy represents an operational improvement, Starbucks must complement it with enhanced products, in-store experiences, and distinctive value propositions to address broader market competition.

Financial results reflect some of the ongoing challenges faced by Starbucks internationally. The company reported a 34% year-on-year decline in revenue for its international segment, which totaled US$1.3 billion in the third quarter of its 2026 financial year. Starbucks attributed the drop primarily to the conversion of its China retail business into a joint venture, which reduced company-operated store revenues during the period.