Zhang Yu JeniZhang13@163.com THE Starbucks China Innovation and Technology Center (SITC) unveiled its digital achievements yesterday and announced its relocation to the Hetao Innovation Center at the Shenzhen Park of the Hetao Shenzhen-Hong Kong Science and Technology Innovation Cooperation Zone (HTCZ). Established two years ago, the center serves as a core engine driving the company’s transformation into a digitally powered, experience-led coffee enterprise, said Luo Jinpeng, vice president and chief technology officer at Starbucks China. “Empowered by AI technology, we will pioneer new opportunities that blend technology and humanity across more scenarios,” Luo said at a ceremony. “This will unprecedentedly expand our unique competitive advantages in stores, products, and partners, creating richer, new value for our customers.” Zhong Hai, director-general of the Hetao Development Authority, congratulated Starbucks and expressed gratitude for its presence in the cooperation zone. He stated that the digital rollout reflects high recognition of the region’s potential for innovation. Zhong added that he looks forward to collaborating with Starbucks to build new digital and physical connections. He emphasized the zone’s national strategic role in developing a world-class research hub. According to Starbucks China, a key achievement of the SITC is the national rollout of digital menu boards to nearly all company-operated stores in China. These boards form a new communication interface designed to create a personalized and warm experience. The system, combined with the SITC’s upgraded “product center” and “menu center,” allows individual stores to tailor product offerings and promotions based on their neighborhood demographics and the time of day. The boards also act as a content platform to share Starbucks’ “bean-to-cup” stories and an interactive interface to engage customers during holidays and special occasions. The SITC’s data capabilities are also driving product innovation. A recent breakfast menu test in Shenzhen was developed using a data-driven model of insight, development, testing, and feedback. Based on analysis of urban breakfast consumers, the company created new, smoother daily black coffee and milk-based coffee drinks and optimized pricing for high-frequency purchases. Market feedback will be analyzed for future adjustments and a potential broader launch. Another core mission is simplifying store operations through automation, allowing employees to focus more on coffee craft and customer service. The SITC has already increased efficiency in several work areas, with plans to expand to more scenarios. Starbucks China has now implemented its IoT intelligent system One-Box across over 7,500 stores nationwide, enabling real-time monitoring of 20 types of equipment spanning seven major operational systems. By analyzing the unique operational characteristics of different store formats and time periods, the system delivers tailored energy-saving and efficiency optimization strategies. This initiative has generated annual energy cost savings exceeding 50 million yuan (US$7.03 million), the company said. According to earlier media reports, the SITC, which settled in the HTCZ in 2023, acts as the digital hub for Starbucks’ future growth in China. The center had invested 500 million yuan in research and development by the end of 2024, generating approximately 263 million yuan in sales revenue last year. | 