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Beijing: Why free internet in is coming to an end, and coffee is going to be big

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A few simple observations when I’m in Beijing’s McDonald’s.

1. I noticed there is an open access point called McDonald’s. With joy, I knew they are offering some free internet.   With a catch  - only 30 minutes per day. You will also need to enter your personal information, such as ID card, name, and email address because it is REQUIRED by law to do so. (互联网上网服务营业场所管理条例第23条)

Think about all the Starbucks and Hotels and Restaurant access points and how you can just log on with a simple WEP password or more likely no password.

Once the 30 minutes are up, you will need to purchase credits -

  • 24 hrs for 10RMB (about 1.5USD)
  • 1 month for  48RMB  (about 7USD)

The company that operates behind this teamed up with Y5zone – one of the Wifi operators in Hong Kong, which pretty much put the entire city into a paid wifi zone.  Looks like this business model is coming soon in Beijing.

2. Coffee drinkers

While ordering a meal, I noticed many people opted to get coffee instead of the regular pop.  Now, I think it’s only recently that McD began to offer free coffee refills in China.  I can see about 30-40% of people in the restaurant having a coffee mug in their hands during peak lunch hour.

So, what does that mean?

Starbucks and chain cafes had long had a foot hold in Beijing. They are able to get away with charging 15RMB (2USD) for a tall (smallest) coffee of the day.  A specialty coffee of the same size is 24RMB (3.5USD).  Almost on par with US, one may say.  But, here is what 15RMB in Beijing can get you:

  • A McChicken Combo in McDonald’s (yes, the burger, fries, and medium drink)
  • 15 cups of soydrink
  • 10 days of milk
  • 2 bowls of beef noodles

Obvioiusly, Starbucks  or similarly priced coffee were not for mainstream consumers.

Now, with McDonald’s making their coffee cheap (at  8RMB, or 1.1 USD), and offering free refills, coffee is about to hit to the mass market.  Along with the Taiwanese 95degree chain hitting up China, coffee will make a good run to the traditionally tea-only culture.

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2 comments to Beijing: Why free internet in is coming to an end, and coffee is going to be big

  • ToTo

    As far as I know, China’s McD begun to offer free refills on the first day they sold cup coffee and black tea. As a local Beijinger ,we were so addcited to that many many years ago when I was a high school student doing my homework at the McD near the school every friday night.

  • That’s a good point. Maybe McD had offered the free refills for coffee and tea, but it wasn’t publicized. They did announced that the McCafe (aka good coffee) is offering refills just earlier this year.

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