Summary of Key Points
This news article, based on the accounts of a former Starbucks employee named Xiao Yang (a pseudonym), outlines the profound changes that Starbucks China has undergone over the past decade. The brand, once centered around its "coffee culture" and "partnership philosophy," treating employees as business partners and focusing on customer experience, has gradually shifted towards prioritizing cost reduction and efficiency improvement. In 2023, Luckin's quarterly revenue surpassed Starbucks', and the appointment of a financial executive led to increased digital integration and rapid expansion of stores. Following the acquisition by Boyu Capital in 2025, full-time positions were cut back, the coffee bean stock incentive program was discontinued, and store managers were tasked with managing multiple stores. As a result, employees shifted from viewing their work as a career to treating it more like a side job, leading to a decline in the company's coffee culture and widespread disappointment among former staff members. Essentially, Starbucks has transitioned from being driven by human values to being driven by efficiency, at the cost of its core competitiveness.
Detailed Analysis
1. The Reversal of Employee Status: From "Partners" to "Costs"
In the past, Starbucks referred to its employees as "partners," and this was not just lip service. The founder, Howard Schultz, implemented a coffee bean stock incentive program where even part-time employees could receive shares; Xiao Yang received 12 shares each year. During the pandemic in 2021, salaries were increased, and employees received an additional 14th month's pay. Employees truly saw their work as a career opportunity—Xiao Yang felt honored to pass the professional exam to earn his black apron and voluntarily took on roles such as teaching or running coffee training classes, even refusing job offers from headhunters.
Today, the stock incentive program is gone (as the company became a joint venture and could no longer hold U.S. stocks), and full-time positions have been reduced to just 1-2 per store. Part-time employees typically stay for only about four months before leaving. Recruitment now requires approval from headquarters, and store managers struggle to find enough staff, often having to borrow workers from other locations. Employees are now seen more as a cost factor. While part-time and full-time benefits were similar before, part-time jobs are now akin to temporary positions, with employees coming and going so quickly that regular customers can't remember their faces. Xiao Yang notes, "In the past, we would feel sad when someone left; now, we just say 'congrats.'"
2. The Coffee Culture: From a "Belief" to "Irrelevance"
The old black aprons featured the phrase "The last ten feet are in our hands," symbolizing the effort from coffee cultivation to roasting, with baristas passing this experience directly to customers. Employees had to create presentations and brew coffee for regional managers during the training process; receiving an apron was like receiving an honor. Daily meetings before work included drinking coffee and discussing flavors, along with a coffee passport to record tasting experiences.
Now, the old phrase is no longer on the new aprons. The training has become routine, with employees asking if passing the exam would lead to a salary increase (and if not, they skip it). Coffee tasting events and internal competitions have disappeared, and the electronic coffee passport is rarely used. Some employees even don't like coffee themselves. Xiao Yang questions whether this change is due to cost considerations, suggesting that the company no longer sees spreading the coffee culture as its mission but focuses solely on financial metrics.
3. Efficiency First: Store Managers Struggling to Keep Up
After 2023, Starbucks accelerated its expansion, opening 900 new stores (many in lower-tier cities) and implementing the "Set Sail" program, which required store managers to manage multiple locations. Xiao Yang's daily tasks include dealing with employee turnover, obtaining headquarters approval for new hires, and trying to motivate Generation Z employees (e.g., by encouraging them to sleep early). They also need to promote products like mooncakes to boost sales as coffee prices have decreased revenue.
In the past, store managers had more autonomy in hiring and organizing events; now, even adding a mall advertisement depends on the store's performance. Xiao Yang says, "All our energy is spent on recruitment and borrowing staff; we don't have time to pay attention to competitors like Luckin and HeyTea, whose business has plummeted from 1,000 orders a day to just 300."
4. External Pressures: Luckin's Rise and Changing Market Conditions
Starbucks' transformation was not sudden. In 2023, Luckin's quarterly revenue surpassed Starbucks' for the first time, which was a significant blow. Consumers have also changed their preferences—now they value cost-effectiveness (with Luckin's coffee available for just 9.9 yuan). During economic downturns, some customers will sit in Starbucks for an entire day without making a purchase, and the company has even removed power outlets to discourage prolonged stays.
Malls no longer treat Starbucks favorably; once a sought-after tenant, they now refuse to accommodate the brand if its business is struggling. Xiao Yang observes that Starbucks is "the last in the food industry to lay off employees or implement strict performance evaluations," but these measures are necessary due to fierce competition and changing market dynamics.
5. The Uncertainty After the Acquisition
The acquisition by Boyu Capital in 2025 brought about a significant cultural shift. Xiao Yang wrote to the company's global CEO, asking them not to sell the business, but received no meaningful response. Although Boyu Capital holds online meetings, Xiao Yang feels they don't understand the Starbucks employees—the very people who once worked tirelessly to build the brand are now losing confidence.
Employee benefits are also at risk: While the 13th-month salary is still available, Xiao Yang worries it might be discontinued in the future. The coffee bean stock program was canceled without any alternative compensation measures (such as traditional Chinese-style equity incentives). He believes that what was lost in less than a decade may be difficult to regain. Today's young employees join Starbucks mainly for a job, lacking the sense of dedication they once had; societal values have changed, and Starbucks' foundation has been eroded.
Conclusion
Starbucks has shifted from using coffee to connect people and culture to using data to manage its operations and business. This change may be a necessary response to competition, but the disappointment among former employees highlights that losing the spirit of partnership and cultural heritage could be the true greatest loss. The story is told through Xiao Yang's personal experiences, making it accessible to non-financial readers who want to understand Starbucks' transformation.