The image from pixabay
As you know, Starbucks is one of the famous coffee chain-shop of all over the world. It’s famous in Japan too and lots of youth visit there. The author also visits there occasionally.
Meanwhile, Starbucks Japan decided to rise some drinks prices depending on the characteristics of the location and trade area from 15 February 2025.
In this section, I’d like to talk for details including personal views.
※ Starbucks Japan delisting in February 2015, therefore I couldn’t see the detail of decision for this.
According to the Starbucks Japan official website, it says that the company continue to be close to our customers and deliver richer experiences. There are three things commodity pricing initiatives.
- Location-based pricing introduced in about 30% of shops nationwide
- Free changeover to soy-milk in beverage products in nationwide
- Nationally available ‘One More Coffee’, which offers a special price for the second cup, and beverage customisation maintain current prices.
the location-based pricing will be introduced such places.
- Shops in service areas, airports, etc.
- Tokyo and Osaka or other large cities etc.
I think it has a three reasons.
- High demand by inbound effects
- Poor performance of Starbucks in the US.
High demand by inbound effects
In Japan, the interest rate differential with Western countries has led to a sharp depreciation of the local currency. As a result, many tourists from other countries are coming to Japan.
According to the Japan National Tourist Organisation (JNTO),In December 2024, the number of foreign visitors to Japan reached 3,489,800, the highest level since statistics began in 1964.
Most of overseas tourists will buy goods and services even if the prices are slightly higher, and they will visit famous tourist destinations such as Tokyo and Osaka.
Starbucks Japan may be trying to capture these people to generate additional revenue.
Poor performance of Starbucks in the US
According to the Q4 results by Starbucks in the US in 2024, as many as 96 Starbucks shops have closed.
In addition, Starbucks’ mainland US try to keep customers coming back by offering free second coffees.
Against this background, the company may have tried to improve its performance in Japan, the second largest market after China in Asia.
Thank you for reading at last.
Nikkei
https://www.nikkei.com/article/DGXZQOUC301RX0Q5A130C2000000
Starbucks Japan Official website
https://www.starbucks.co.jp/press_release/pr2025-5387.php?nid=nw_01_pc
JNTO(Japan National Tourist Organisation)
