Pandemic Impact! Starbucks Accelerates Expansion of Cash-Free Stores
Starbucks Goes Cashless in the UK
A British netizen posted a notice on social media from a local Starbucks announcing that the store would no longer accept cash payments. The notice specified that starting from October 1, 2022, the store would only accept card payments, contactless payments, or Starbucks Rewards payments, indicating that more and more Starbucks locations are discontinuing cash payment support. This announcement caused considerable dissatisfaction among local netizens.
According to a report by the British media outlet Telegraph & Argus, similar notices appeared outside a Starbucks store in Bradford, UK. As voices questioning this practice grew louder on social media, cashless payments seem to be becoming a trend across Starbucks stores nationwide in the UK. The aforementioned media outlet has contacted Starbucks official for comment and is awaiting the latest official response.
Mixed Reactions from Customers
Some netizens commented that they hadn't used cash for a long time, and Starbucks' policy of not accepting cash payments hasn't significantly affected them. In fact, they find electronic payments more convenient and secure.
However, other netizens expressed opposition to Starbucks not accepting cash payments and stated they would no longer patronize any Starbucks stores.
Not a New Initiative
Some netizens pointed out that Starbucks no longer accepting cash payments is not new, as it was mentioned back in 2020 by then-CEO Kevin Johnson.
However, as early as December 2017, Howard Schultz stated in an interview with CNBC that Starbucks might become a cashless coffee chain in the future.
In April 2018, Starbucks piloted a cashless model in three stores in South Korea, which proved successful. The cashless operation model was then rolled out on a large scale across all Starbucks stores nationwide in South Korea from July 16.
On July 30, 2020, the "Office Coffee Shop" opened by Starbucks Japan became the first Starbucks store in Japan to be "cash-free, all-electronic payment."
In 2020, as the COVID-19 pandemic swept the globe, then-CEO Kevin Johnson stated that Starbucks was planning to expand cashless payment options to protect customers and employees from coronavirus infection, predicting that mobile payments would become the primary payment method.
Legal Considerations
However, stores refusing to accept cash is quite controversial. Some netizens have pointed out that isn't it illegal for businesses to refuse to accept national legal tender?
A British netizen clarified that it is not illegal for businesses to refuse cash payments.
However, legal regulations differ between countries. In August 2020, a Douyin (TikTok China) blogger brought 9.9 jin (approximately 4.95 kg) of coins to Starbucks for consumption, but the Starbucks staff responded that they couldn't accept coins because they were inconvenient to store. This incident sparked heated discussion online.
According to the relevant provisions of the "Law of the People's Bank of China," Renminbi (RMB) is the legal tender of the People's Republic of China. RMB shall be used to pay all public and private debts within the territory of the People's Republic of China, and no unit or individual may refuse to accept it. Therefore, businesses refusing to accept cash is illegal.
Starbucks China responded to the incident of refusing coins: There is no regulation refusing to accept coins, and this has been reiterated to all stores. We apologize for the poor experience of individual customers.
Currently, there is no indication that Starbucks stores in China will follow this practice, as clearly, refusing cash is not legal in the country.
Additional Information
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