Introduction to the Holiday Season
The holiday season is arriving in New York and less than a week into November, Starbucks has released its festive holiday menu and cups. Among this year’s holiday merchandise debuts is the Glass Starbucks Bearista Cold Cup, a $30 glass bear-shaped cup that has taken the internet by storm, as Starbucks stores run out of this viral tumbler in under 24 hours.
The Viral Bearista Cup
Made of glass, this mini teddy bear cup comes with a green beanie and straw in green and white stripes. Customers lined up outside locations of the Seattle-based coffee chain as early as 4 a.m. on Nov. 6, in some cases, to get their hands on this viral cup — only for many to wind up being turned away. Rob Pepp got up at 3 am on Nov. 6 and pulled up to a Starbucks nearby in Staten Island for a cup. The content creator had a feeling that there would be people in line for the Starbucks Bearista Cup that was launched for this holiday season.
Customer Disappointment
The Bearista cup is now being resold on eBay for as much as $399. When asked if Pepp would be willing to buy the cup at such a lofty price, the content creator said, “Absolutely not. In this economy!!” Customers who have found themselves shut out of the special glass took their displeasure to social media. “Hey @Starbucks glad I woke up at 4 am to go to your store for the new bear cup to be told the only one they had an employee purchased. Sick system.” said Brian Kaplan, a user on X.
Allegations of Employee Favoritism
Several users allegedly complained on social media that the Starbucks employees were buying the bearista cup for themselves even before opening the store. “I did not see anything with my own eyes, but I did hear some gossip from Starbucks employees that I’m friendly with.” Pepp believes the rumors are true. Starbucks had to publicly apologize to fans for the low supply amid high demand.
Holiday Collection and Performance
Among the coffee giant’s holiday collection is a collaboration with Hello Kitty, which will be available for the first time in North America. At $85.16 in the first week of November 2025, the price of Starbucks (SBUX) suffers a 12% drop from last year’s performance at $97.55. Mizuho Financial Group is skeptical that investments in an improved SBUX experience alone will suffice in convincing customers to pay for Starbucks premium.
Restructuring and Challenges
Due to the pressure of tariffs and plans of restructuring in the beginning of this fall, the coffee chain had shut down over 450 stores in North America, with 34 alone in New York. In continuation of the restructure plan, Starbucks also announced its plan to sell 60% of its stake in its second-largest market, Starbucks China, to Boyu Capital, a Chinese private equity firm, in a $4 billion deal this week. One of the major challenges faced by Starbucks China was the emerging economic competitors like Luckin Coffee, which recently launched 5 locations in New York, targeting North America as their next possible expansion.
Partnership with Boyu Capital
Started in 2011, Boyu Capital runs a diversified portfolio that includes tech giants like Alibaba Group and Singapore-based Genesis Medtech. “Strategic response to market challenges. Starbucks has been facing heavy competition, with Luckin Coffee having outpaced its store expansion more than two years ago”, said Alison Fok, a Primary Analyst for DBS. Through this partnership, Starbucks China hopes to expand its chain from 8,000 to over 20,000 locations across different cities.
Conclusion
As the U.S. and China, the two largest markets of this Seattle-based coffee chain, are put to the test amidst trade and political tensions between the two economies, this holiday season looks less sweet than before. The company faces significant challenges, including increased competition and a decline in stock performance. Despite these challenges, Starbucks remains committed to expanding its presence in China and improving its customer experience.
FAQs
Q: What is the Glass Starbucks Bearista Cold Cup?
A: The Glass Starbucks Bearista Cold Cup is a $30 glass bear-shaped cup that has taken the internet by storm, with Starbucks stores running out of the item in under 24 hours.
Q: Why are customers upset with Starbucks?
A: Customers are upset with Starbucks because the Bearista cup is being resold on eBay for as much as $399, and many were unable to purchase the item due to low supply.
Q: What is the partnership between Starbucks and Boyu Capital?
A: The partnership between Starbucks and Boyu Capital is a $4 billion deal in which Starbucks will sell 60% of its stake in its second-largest market, Starbucks China, to Boyu Capital, a Chinese private equity firm.
Q: What are the challenges faced by Starbucks China?
A: Starbucks China faces challenges such as increased competition from emerging economic competitors like Luckin Coffee, which has outpaced Starbucks’ store expansion in recent years.
Q: What is the expected outcome of the partnership between Starbucks and Boyu Capital?
A: The partnership is expected to help Starbucks China expand its chain from 8,000 to over 20,000 locations across different cities, and improve its competitiveness in the market.
