How Korean Coffee Chains Are Challenging Starbucks in China

As Chinese consumers flock to coffee shops, foreign coffee brands are battling for their attention. Among the contenders, Korean coffee chains have made a dramatic entrance—but their success depends on more than just lattes.

Korean coffee chains entered China aggressively, opening over 400 stores by 2014—more than double Starbucks’ initial 13-year rollout—and aiming for 1,000 by 2015. But beneath the trendy décor and celebrity ads, can they truly challenge Starbucks’ dominance?

The ‘Korean Wave’ in China’s Coffee Shops

By 2013, China had around 28,000 coffee shops, including over 8,400 chains. While American (Starbucks), European (Italian/French), and Taiwanese (like Uni-President and Tsann Kuen) styles had already taken root, none fully escaped Starbucks’ “third space” concept—the idea of cafés as social hubs beyond just drinking coffee.

Korean Cafés: Designed for Young Women

Korean coffee chains carved out a niche with a distinct aesthetic. Think large windows, two-story layouts, wooden and vintage decor, and an emphasis on natural materials. Brands like Café Bene and Zoo Coffee leaned into a cozy, slightly rustic vibe—using textured wood, linen sofas, and straw chairs—far from the sleek, masculine tone of most Western chains.

Starbucks’ interiors, by contrast, feature brighter, more polished wood tones. “Korean cafés add a touch of countryside charm, making them feel more approachable,” said Li Qiang, chief strategist at Zhitung Liuyi International Catering Management. Female-focused branding was intentional: nearly all major Korean café brands, including Café Bene and Homestead Coffee, targeted young women. Celebrity endorsements—from actors like Song Seung-heon, Han Ye-seul, and later Kim Soo-hyun (from Goblin)—further amplified their appeal. Zoo Coffee even decorated with animal motifs, while Hollys used red brick walls for a forest-like feel.

Food, Franchising, and Fast Expansion

Korean chains simplified menus compared to Taiwanese brands, avoiding heavy dishes like pizza or steak, but offered more variety than typical Western chains. They introduced unique drinks like floral-inspired lattes and freshly made items like waffles, often prepared in-store. Café Bene, for instance, launched its own line of specialty lattes tailored to less caffeine-sensitive female customers.

Franchising drove their rapid growth. While Starbucks and Costa Coffee avoided franchising entirely, Café Bene expanded to 400+ stores in China by 2014 and aimed for 800 by year’s end, with plans to reach 1,000 in 2015. The brand operated in 14 countries, totaling 1,200+ outlets. In comparison, Starbucks had just over 1,000 stores in China by 2015, up from 400 in 2011—but planned to hit 1,500 soon.

The Challenges Ahead

Despite their rapid rise, Korean coffee chains faced hurdles. Many were concentrated in Korean expat neighborhoods, limiting broader appeal. More critically, they hadn’t imported the core elements of Korea’s specialty coffee culture. Their focus on style and marketing often overshadowed coffee quality. As Wang Zhendong, head of the Shanghai Food Association Coffee Industry Branch, noted, their success relied heavily on China’s booming market and aggressive franchising—but sustaining growth against established players like Starbucks would require more than just surface appeal.

Frequently Asked Questions

How many coffee shops were there in China by 2013?

By the end of 2013, China had approximately 28,000 coffee shops, including over 8,400 chain-operated locations, according to a report from China Business Network.

What made Korean coffee chains different from American or Taiwanese ones?

Korean coffee chains targeted young women with spacious, nature-inspired interiors (using wood, straw, and linen), celebrity endorsements (like Kim Soo-hyun), and a focus on fresh, in-store food preparation. They avoided heavy menu items common in Taiwanese chains and offered more variety than typical Western cafés.

Did Korean coffee chains use franchising to grow?

Yes. Brands like Café Bene rapidly expanded through franchising, reaching 400+ stores in China by 2014 and planning 1,000 by 2015. In contrast, Starbucks and Costa Coffee did not use franchising in China.

Why didn’t Korean coffee chains surpass Starbucks in China?

Despite fast expansion, most Korean coffee shops stayed in Korean communities, lacked strong local coffee culture roots, and focused more on style and marketing than coffee quality. Their appeal remained limited outside younger female demographics.

What kind of drinks did Korean coffee chains specialize in?

Korean chains introduced floral and unique latte flavors tailored to less caffeine-tolerant customers, especially women. They also offered freshly prepared items like waffles, often made in-store, unlike Western chains that relied on centralized food prep.

Recommended FrontStreet Beans for Café-Inspired Brewing

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