Make Starbucks Cool Again

A minor step, but a strategic one to rejuvenate a middle-aged brand

After Starbucks announced it would lower the price of some non-coffee drinks by 5 RMB (about $0.70), I stopped by a nearby store and ordered a 23 RMB iced shaken orange carrot tea. The drink was cool and tasty. The barista thoughtfully dressed it with a charming Rabbit Judy sleeve—part of a collaboration with Zootopia—and gently reminded me that I could snap a photo for social media. In that moment, something clicked: my long-forgotten joy with Starbucks returned, packed with years of memory and emotional connection.

The price cut has sparked heated discussion online. Most of the chatter centers on pricing, seen by many as a counterstrike or a last-resort move in the ongoing price war triggered by aggressive homegrown players like Luckin. I don’t intend to wade into that debate; countless analyses have already done so. Instead, I want to look at this from a brand strategy perspective. And this is exactly where I continue to admire Starbucks: a brand that plays the long game with strategic intent and a clear sense of identity.

1. Rejuvenating the brand by leading with non-coffee offerings

Starbucks opened its first store in Beijing in 1999, meaning it has now been in the Chinese market for over 25 years. If we imagine the brand as a person, it’s a middle-aged figure, steadily navigating challenges that many of its younger, more aggressive rivals haven’t yet faced. Among Gen Z consumers, Starbucks no longer feels trendy or chic. Many now prefer younger tea or milk tea brands that ride the wave of Guochao and hyper-local design.

Yet these same Gen Zers haven’t forgotten the Mango Frappuccino—once a staple summer treat their parents ordered for them, especially if they didn’t yet drink coffee. Many of them quite literally grew up with Starbucks’ non-coffee drinks, creating a soft spot of nostalgia and familiarity.

By lowering the price of these drinks to match those of high-end local tea brands, Starbucks is cleverly luring those once-little customers back into the store. The move is paired with smart co-branded collaborations, first Mayday, Snoopy, and now Zootopia. What I appreciate most is that Starbucks is doing this without losing its international brand identity. Unlike local competitors that lean heavily into traditional Chinese aesthetics, Starbucks continues to embrace a more cosmopolitan image.

As trends and fads come and go, the real test for any brand is whether it can stay true to its core spirit while making the necessary adaptations to cultural and social change. Starbucks, as a seasoned player, understands what it needs to hold on to. At the same time, it may need to move faster and make more agile adjustments to keep pace with the zeitgeist of a new era.

 2. Staying Out of the Coffee Price War—for Now

Notably, Starbucks has made no changes to the pricing of most of its core coffee offerings. I see this as a deliberate pause—a moment of strategic restraint before any major move. Right now, the coffee business in China is increasingly complex, with Luckin acting as the most aggressive disruptor in the market. I’ve never been convinced that selling coffee at 9.9 RMB per cup is sustainable. It’s a flashy, bold move—a way to bluff competitors by slashing prices to a level that leaves little to no profit for anyone. The damage has already been done, and so far, no one has emerged as a clear winner.

In this muddy, highly competitive price war, making no move may be Starbucks’ smartest strategy—for now. Long-term brand building shouldn’t come at the expense of short-term gains. It requires clarity and conviction. With so much uncertainty in the market, it would be unwise—and frankly, too late—for Starbucks to join the race to the bottom just to win back price-sensitive consumers. Especially after so many years of positioning itself as a premium coffee brand, chasing discounts could risk diluting everything it has built.

So, how can Starbucks be cool again, if not through price?

It needs to look beyond the cup: reigniting desire through culture and experience.

First, double down on lower-tier cities to revive the myth

Shanghai still plays a significant role in Starbucks’ coffee expansion map—but increasingly, it’s a symbolic one. The local coffee culture has evolved into a post-artisanal era, where niche and personality-driven cafés dominate, and Starbucks has largely lost its cool factor.

But China is vast. In many cities where coffee culture is less developed, Starbucks remains a cool, aspirational brand—an emblem of urban lifestyle and modern identity. To maintain this cult-like appeal, store location and local relevance are critical.

To truly capture the zeitgeist, Starbucks could lean more into local culture and heritage, creating spaces that feel rooted in place while delivering a global experience. A great example is the recently opened store in Chongqing’s renovated Lu Zu Temple. Tucked inside a historic site, the store seamlessly integrates with traditional architecture, paying homage to the city’s cultural heritage. It’s a compelling fusion of modern urban life and historical depth — a model for how Starbucks can continue to resonate beyond the coffee itself.

Second: create experiences, not just drinks

As Chinese consumers increasingly prioritize experiences over products, the key to standing out lies in creating spaces that make people want to stay and come back. One reason Starbucks has lost appeal in Shanghai is that many of its stores lack individuality. Too often, they’re cookie-cutter in design: predictable and replicated.

But Shanghai thrives on the vibe for bold and thoughtful individuality. It’s a city where self-expression and niche tastes shape everyday decisions. To truly resonate, Starbucks needs to offer more than just coffee—it needs to help urbanites find their tribe, spark curiosity, and extend their unique identity. In doing so, it can win not just their attention, but their hearts (and appetites) as well.

Starbucks doesn’t need to win the price war. It needs to play its own game—quietly, strategically, and coolly. I’m curious to see what unfolds next—not just for Starbucks, but for the shifting landscape of China’s coffee culture. The market is changing fast, and much of the disruption may come from adjacent categories, like tea or even retail itself.