Starbucks shuts two China outlets after reports they used expired ingredients -Breaking
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© Reuters. FILEPHOTO: This Starbucks sign was displayed in Los Angeles on October 19, 2018, U.S.A. REUTERS/Mike Blake/File Photograph BEIJING (Reuters), -The U.S. chain of coffee shops Starbucks (NASDAQ;) stated Monday it had shut down two locations in China. The company was investigating after a newspaper supported by the state reported that Starbucks used expired ingredients for making drinks and violated food safety standards.
Beijing News, which described the investigation as undercover, stated that incidents took place at Wuxi, an eastern Chinese city.
Starbucks spokeswoman said that the company takes all reports by local media extremely seriously. They have closed both of these stores immediately to carry out an investigation.
We have been committed since our entry into the Chinese mainland market 22-years ago to implement strict food safety standards. The media and public are welcome to continue their supervision.
However, the company declined to comment on specifics. Later reports stated that Wuxi local authorities had been probing the shops.
After the publication of this report, it became an increasingly popular topic on China’s Twitter-like Weibo site (NASDAQ:).
Chinese customers and media are more vigilant about protecting their rights and monitoring large brands’ behavior, especially when they come from overseas.
Canada Goose, a Canadian brand of winterwear, was the target of complaints about its refund policy. Chinese brands like Nayuki, a milk tea company, also received government reprimands.
The largest Starbucks market outside of the United States is China, with 5,360 outlets as of October 3, according to Starbucks’ latest earnings report.
According to the Beijing News, one Starbucks store used old matcha to make lattes while another offered pastries that could be recycled.
Weibo had more than 50 million people viewing the Starbucks reaction to the Beijing News article on Monday afternoon. Many commenters were both disappointed and worried about more general problems.
Revario said, “If Starbucks is like that, then other shops really worry about me.” They are subject to scrutiny as it’s a foreign company.
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