US-based international coffee company Starbucks has been accused of overpricing by the media in China in the last couple of days. The popular cafe chain has been implementing a fast expansion strategy in China and in the past 12 months, the number of stores has grown from 568 to 851 in 58 cities in the country.
However, Starbucks is not the only company which is being accused of overpricing in the country and other, high-end product brands have encountered similar accusations. For instance, Haagen-Dazs ice cream is another famous brand which is currently under scrutiny for its prices, which are three times higher in China than in other markets.
Starbucks explained that it does not make any additional profit on a cup of its coffee in the country than it does anywhere else. China Central Television stated that a latte cup at Starbucks costs 27 yuan, but it takes just 5 yuan to make it. Starbucks in a statement said, “Each Starbucks market is unique and has different operating costs, so it would be inaccurate to draw conclusions about one market based on the prices in a different market.”
The US-based coffee giant defended its pricing and stated that higher prices are due to the higher prices of food and logistics in the country.
Photo Credits: Red Luxury