"Because many Chinese customers love to spend hours in a coffee shop instead of leaving when their coffee is ready, Starbucks has to rent larger spaces for its shops in China. The pricing is based on a number of factors such as cost of labor, equipment, rent and custom duties, in addition to raw materials."

John Culver, president of Starbucks China and Asia-Pacific after Starbucks Corp came under fire recently for charging higher prices in China than other markets.