Starbucks relocates flagship Beijing store due to sky-high rentals
Starbucks has been forced to move its first ever store in Beijing as its annual costs including rent and staff is estimated around seven million yuan (US$163,000) a year, while the company's average revenues in their shops in the Asia-Pacific area is around US$829,000, the paper said.
Here is the blog post: 连星巴克也受不了北京的高房租了 (Even Starbucks cannot bear Beijing's high rents)
It is normal and inevitable that the real estate bubble affects businesses due to rising rents, but when even big companies like Starbucks cannot bear the high rents, who is next? And after that one, will more businesses leave? So much that Beijing turns into Detroit? Only God knows!Beijing won't turn into Detroit, but rents are reaching the upper limits if Starbucks was forced out of a prime location.
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