Hospitalizing Starbucks ignites debate
(Shanghai Star)
Updated: 2004-10-26 11:38

The 39th Starbucks outlet in Shanghai will open at the end of this month. That in itself is not unusual, but this cafe will be located in a hospital, marking the first time any Shanghai hospital has agreed to such an arrangement. It is also the first time ubiquitous Starbucks has made such an agreement in China.

A medical worker in white gown walks past a huge banner of Starbucks. [sina]

Shanghai East Hospital, located in Lujiazui, the most prosperous commercial area in the Pudong New Area, will host the new Starbucks. The company is the biggest coffee retailer in the US.

Both the company and the hospital emphasized that their co-operation is designed to meet the needs of each party, with the aim of bringing about a "win-win" solution. Shanghai East Hospital did not organize the arrangement itself, but handed the negotiations with Starbucks over to the Yipu Company, which is affiliated to the hospital, according to a hospital spokesperson.

The cafe was expected to open for business inside the hospital on October 20, according to a local newspaper. However, the construction and decoration process has been delayed, and a new opening date has not yet been disclosed.

In the part of the hospital where the coffee chain is to be located, two areas of equivalent size near the entrance have been boarded off. Peeking through the cracks, it is possible to see wood and other construction materials piled up inside. Nevertheless, the final appearance and facilities of the new outlet remain a mystery, as do its business prospects inside the hospital.

Hygiene issue

How healthy will it be to enjoy a cup of Starbucks coffee in the hospital? Some have raised questions about the hygiene requirements for the cafe.

"We will use disposable cups in the new outlet instead of the coffee mugs used in ordinary outlets, in order to prevent diseases from spreading," said Summer Li, spokesperson for the President of Starbucks Coffee Shanghai Corporation.

As for Shanghai East Hospital, its spokesperson said hospital space was divided into three categories: a sterile area, a clean area and a contaminative area. The clinic hall where the Starbucks will be located belongs to the clean area, so - in theory - there is no difference between this spot and any other public place.

Liu Zhongming, the president of the hospital, said people should not worry unduly about the risk of contagion - after all, customers at any cafe could become sick. Strict disinfection measures would be undertaken to lower the possibility of contagion or contamination. The new outlet, which will occupy about 60 square metres, is to be enclosed and operate "half-openly", a description said to relate to concerns about hygiene and customer safety.

Wang Weihua, head of the Yipu Companyo, claimed strict hygienic practices would be followed in the new Starbucks, but she refused to say anything else about the coming cafe.

Liu said the introduction of Starbucks into the hospital required approval from the local health inspection department. "There is no precedent for this in China - we are making the first attempt," he said. "What we have to do is ensure compliance with all relevant national standards and regulations. We have a lot to do, including setting up the appropriate facility, keeping the fresh air circulating, taking disinfection measures and offering superior service."

It is not unusual to find cafes in the clinic halls of hospitals in some foreign countries. In these cases, however, due to their larger main halls and lower visitor numbers, it is easier for the cafes to operate in well-ventilated areas. Some experts have suggested that Chinese hospitals should be more concerned about their general conditions than about housing coffee shops.

Relaxed atmosphere

"It's important to keep in line with the best international standards - not just medical expertise, but also service concepts," said Liu, the hospital president. "We want to create a more relaxed and cozy environment for patients, their family members and medical staff."

Liu said establishing such a cafe within the hospital would serve to improve its entire atmosphere.

"Patients can sit and wait for their medical examination results in the Starbucks with a cup of coffee, which will help to lower their anxiety," he said.

The hospital had previously planned to establish a cafeteria of its own, but switched to the idea of partnering with Starbucks because of the coffee company's reputation, Liu said.

"Furthermore, opening and running a cafe is a much simpler undertaking. It is far riskier establishing a restaurant in a hospital. Obviously, more steps are involved, including the purchase and transportation of food, cooking and disinfection of dishes," he said.

Starbucks, meanwhile, hopes patients, doctors, nurses and employees from nearby buildings all make use of the new location.

"We are ready to bring our service to where there is a need," said Li, the Starbucks spokesperson.

Seattle-based Starbucks Corporation opened its first China outlet in Beijing's Forbidden City, the former imperial palace, in December 2000. Now it has chosen Shanghai East Hospital as the newest site at which to sell its coffee and spread its culture.

Li said the company chose the hospital after conducting careful research, noting its ideal location, surrounded by office buildings and near a condensed residential community.

The company expects the new outlet to be attractive to the white collar workers nearby.

"Hospitals are not awful places," said Li.

Habits and doubts

In the clinic hall of Shanghai East Hospital, next to the future Starbucks, several visitors were interviewed by the Shanghai Star.

"I think it would make a good place for people to sit and wait for their examination results," said one, surnamed Fan. "Some patients are accompanied by their family or friends, and not all of these people need to see the doctors, so it will be good for them to have the chance to enjoy a cup of coffee here."

But some seemed to dislike the idea of drinking designer coffee in a hospital.

"I often drink coffee in Starbucks, but I will not drink here. There is a Starbucks near my workplace, and I would prefer to go there," said a young woman surnamed Li.

"It would be better for the cafe to be located outside the main hall," said a man surnamed Xu. "Most people are used to avoiding hospitals. Unless they have to stay in the hospital for some reason, they would not choose to come to a cafe there. I am not sure whether it will prove very profitable."

According to Xu Lanbo, an expert on consumer behaviour and legislation at the Chinese Academy of Social Science, it is reasonable to offer refreshments and places to relax in hospitals. Nevertheless, he doubts whether it is appropriate to put a cafe in the clinic hall. "People may not feel at ease drinking coffee in such a noisy and busy area. It may also add to the difficulty of maintaining hygiene in the cafe. I think the hospital would be more sensible if it put the new outlet in the park, or at least outside the main hall."

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