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January 18, 2022

Starbucks partners with Meituan to expand delivery services in China

The partnership is expected to further expand Starbucks’ reach in China.

US coffeehouse chain Starbucks has partnered with Chinese company Meituan to strengthen its footprint in the country.

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While wanting to protect the country from being overwhelmed by Omicron, China’s adherence to a Zero-COVID policy is resulting in a significant economic downturn. COVID outbreaks in Shanghai, Beijing and many other Chinese cities will impact 2022’s economic growth as consumers and businesses experience rolling lockdowns, leading to a slowdown in domestic and international supply chains. China’s Zero-COVID policy is having a demonstrable impact on consumer-facing industries. Access GlobalData’s new whitepaper, China in 2022: the impact of China’s Zero-COVID lockdowns on economic activity, consumer goods and the foodservice industry, to examine the current situation in Shanghai and other cities in China, to better understand the worst-affected industry sectors, foodservice in particular, and to explore potential growth opportunities as China recovers. The white paper covers:
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The partnership will enable customers to place delivery orders on the Meituan app, reported Reuters. The app will also allow customers to book tables at Starbucks stores.

Starbucks intends to leverage Meituan’s ‘super store’ feature to create a unique page for each of its stores on Meituan’s platforms by the end of 2022.

The feature will allow customers to order food for delivery or check local events.

Under this collaboration, the two companies will also launch a new service that will enable Meituan users to make private bookings for coffee tastings and classes on coffee making.

The Meituan partnership is expected to further enhance Starbucks’ reach in China.

In 2018, Starbucks commenced delivery services in China through a partnership with Alibaba Group’s Ele.me.

A year later, the coffee company extended its alliance with Alibaba by introducing voice ordering and delivery for Chinese customers. This partnership allowed customers to place voice-enabled food and beverage orders.

Citing Starbucks’ latest earnings report, Reuters said that Starbucks currently operates 5,360 stores in China. It is the coffeehouse chain’s second-largest market outside the US.

In December 2021, Chinese officials reportedly carried out food safety checks at Starbucks coffee shops due to the alleged use of expired ingredients.

The inspections were conducted after a local newspaper reported that two Starbucks outlets in Wuxi had used expired ingredients in their drinks.

Free Whitepaper
img

What is the impact of China’s Zero-COVID lockdowns on economic activity, consumer goods and the foodservice industry?

While wanting to protect the country from being overwhelmed by Omicron, China’s adherence to a Zero-COVID policy is resulting in a significant economic downturn. COVID outbreaks in Shanghai, Beijing and many other Chinese cities will impact 2022’s economic growth as consumers and businesses experience rolling lockdowns, leading to a slowdown in domestic and international supply chains. China’s Zero-COVID policy is having a demonstrable impact on consumer-facing industries. Access GlobalData’s new whitepaper, China in 2022: the impact of China’s Zero-COVID lockdowns on economic activity, consumer goods and the foodservice industry, to examine the current situation in Shanghai and other cities in China, to better understand the worst-affected industry sectors, foodservice in particular, and to explore potential growth opportunities as China recovers. The white paper covers:
  • Which multinational companies have been affected?
  • What is the effect of lockdowns on foodservice?
  • What is the effect of lockdowns on Chinese ports?
  • Spotlight on Shanghai: what is the situation there?
  • How have Chinese consumers reacted?
  • How might the Chinese government react?
  • What are the potential growth opportunities?
by GlobalData
Enter your details here to receive your free Whitepaper.

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