Starbucks Runs Into Great Wall of China. Wall Wins.

Forbidden city, indeed.

When the Starbucks in Beijing's imperial palace closed down in July after seven years in operation, it did so amid protests over the international mega-chain's dissonance with traditional Chinese culture.

Now in its place thirsty tourists will find the "Forbidden City Café," which operates under the managerial authority of the Palace Museum and sells beverages as well as souvenirs in a more subdued atmosphere.

Starbucks' decision to exit the symbolic location—seat of 24 emperors and China's top tourist attraction, drawing about 7 million visitors a year—came as Forbidden City management opted to allow retail outlets within the museum to operate only under the management's name. Starbucks, famous for its own aggressive branding—was unwilling to meet the condition.

While the java joint's banishment from the Forbidden City may have been a symbolic failure, China still represents one if its major growth markets. The Seattle-based coffee shop now operates around 250 outlets on the Chinese mainland.

by Liz Gunnison