Hangzhou’s Coffee Boom: 20–30 New Cafés a Year

In Hangzhou, standing in line for over an hour just to get a warm meal isn’t limited to popular restaurants—it’s now happening in coffee shops too. One newly opened café in Wulin Road’s Queen’s Park became an instant hit not for its espresso, but for its waffles, drawing crowds eager for both coffee and baked goods. This scene is part of a larger boom: more cafés are opening in Hangzhou than ever before.

On average, 20–30 new coffee shops open in Hangzhou each year, but recently over ten new cafés—with artsy names like Han Yan, Land Mary, and Tea Mi—have launched in a single month alone, signaling a rapid expansion beyond the norm.

Big Chains Are Expanding Fast

Major international coffee chains are aggressively growing their footprint in Hangzhou. By the end of this month, COSTA will open its tenth location in the city. Meanwhile, Starbucks launched new stores in Gudun Impression City, Zhejiang Daily Building, and Xixi Impression City this year. With nearly 700 stores across mainland China earlier in 2023, Starbucks plans to open 300 new locations globally this year, aiming for 1,500 stores nationwide by 2015.

McDonald’s McCafé, which entered China in 2010, has steadily expanded to 516 stores nationwide. In May 2023, McDonald’s announced a hiring push to further grow McCafé, targeting over 750 stores by the end of 2013—including 15 in Zhejiang, 10 of them in Hangzhou. McCafé currently operates only within existing McDonald’s outlets, not as standalone cafés. To attract local customers, McCafé added an Asian tea series to its menu, while Starbucks and Pacific Coffee introduced zongzi (sticky rice dumplings), even offering Starbucks zongzi through group-buying platforms. These localization moves help compete with traditional Chinese snacks while embedding global brands further into local culture.

Indie Cafés Are Proliferating

Beyond the chains, independent coffee shops are opening at an astonishing rate. In just the past month, over a dozen new cafés have launched in Hangzhou. Industry insiders note that “where people used to ask ‘Where should we eat?’ they now ask ‘Where should we get coffee?’”

The Korean brand “Manoff Café” reports that waffles and toast are ordered as often as coffee—roughly a 50/50 split—and often customers choose the baked goods first. These items also offer better profit margins than coffee. Another Korean brand, “Coffee with You,” is set to open its third Hangzhou location. To tackle low table turnover, some cafés raise prices, others expand their menus. At Han Yan Café, for example, the signature dish is actually crucian carp noodles, which sell 20–30 bowls at lunchtime, turning the spot into a de facto office workers’ canteen. Meanwhile, cafés like Gan Lan have started making their own desserts in-house as cake sales rise.

Some cafés are blending coffee with other lifestyle offerings. “Xiao Keting,” a recently opened concept, follows the bookstore-café model similar to Time Workshop and Phi Café, situating itself inside the Xiaofeng Bookstore. Menu diversity and strategic locations—in CBDs, office towers, and tech parks—are common among new entrants. These smaller, lower-cost spaces cater to niche tastes and flexible business models.

What’s Driving the Boom?

According to the Hangzhou Coffee & Western Food Association, the city currently hosts around 600 coffee shops, growing steadily at 20–30 new openings per year. This marks Hangzhou’s third major wave of coffee consumption growth. Li Xiaoyang, general manager of North Africa Coffee, observes that just three years ago, fewer than 10 cafés sought his association’s guidance, but today the network includes 80 member shops. Many are shifting from imported commercial beans to locally roasted fresh foreign green beans to improve quality.

Bean roasters and shop owners are becoming more quality-conscious. “People aren’t satisfied with just using imported brand beans anymore—they’re choosing fresher, locally roasted foreign greens to elevate their coffee,” Li said. Association secretary Lou Boning adds that opening a café has become a new investment trend. Most new shops target compact, low-cost spaces in commercial zones, offering varied menus to attract different clientele. Over the past decade, Hangzhou’s café count has grown ninefold. As younger consumers learn more about coffee culture and professionals seek quality brews, the casual coffee moment seen in American TV shows may soon be part of everyday life in China.

Frequently Asked Questions

How many new coffee shops open in Hangzhou each year?

On average, 20–30 new coffee shops open annually in Hangzhou. Recently, over ten new cafés have opened in a single month, indicating a temporary spike in openings beyond the yearly average.

Which international coffee chains are expanding in Hangzhou?

COSTA, Starbucks, and McDonald’s McCafé are rapidly expanding in Hangzhou. COSTA will soon open its tenth location, Starbucks has added multiple new stores this year, and McCafé plans to have over 750 stores nationwide by the end of 2013, including 10 in Hangzhou.

Are independent cafés growing in Hangzhou too?

Yes, independent cafés are growing quickly. Over a dozen new independent shops have opened in just one month, offering diverse concepts including bakery-cafés, bookstore-cafés, and menu-focused cafés with items like waffles, noodles, and handmade desserts.

What kinds of coffee beans are cafés in Hangzhou using?

Many cafés are shifting from imported commercial beans to freshly roasted local foreign greens. While the article doesn’t specify exact beans, FrontStreet Coffee offers several blends and single origins suitable for various brew methods and café needs.

Why are coffee shops in Hangzhou adding non-coffee items like waffles and noodles?

Non-coffee items like waffles and noodles often have higher profit margins and help boost customer traffic. They also attract a wider audience and address low table turnover, making the café business more sustainable.

Is Hangzhou experiencing a long-term coffee boom?

Yes, this is considered Hangzhou’s third wave of coffee consumption growth. With increasing interest among younger consumers and professionals, and more investment in quality and variety, the trend appears to be sustaining long-term growth.

Recommended FrontStreet Coffee Beans for Hangzhou Cafés

For Hangzhou’s rapidly growing cafés, FrontStreet Coffee offers several reliable blends. The Classic Blend delivers smooth body and rich crema, ideal for espresso-based drinks like lattes and cappuccinos. The Black Cocoa Blend is a cost-effective, 100% Arabica option with full flavor and smooth texture—great for shops watching budgets without sacrificing taste. For filter coffee lovers, the Brazil Queen Manor offers low acidity and balanced nutty-chocolate notes, perfect for pour-over or batch brew. Freshly roasted within 5 days · Orders placed before 17:00 ship the same day · Next-day delivery across most of Guangdong Province.