McDonald’s McCafé Expands to 750 Stores by Year’s End

When you’re looking for a convenient cup of coffee, you might assume the big players like Starbucks have the market cornered. But in China, a surprising challenger is rapidly expanding its footprint: McDonald’s McCafé. With major backing from one of the world’s largest fast-food chains, McCafé is growing faster than many specialty competitors, particularly in southern markets like Guangzhou and Foshan.

By the end of 2013, McDonald’s plans to operate more than 750 McCafé outlets nationally—up from 516 at the close of 2012—an increase of 45%. In the Greater Bay Area alone, McCafé locations surpassed 100 stores in Guangzhou and Foshan, with a target of 130 by year-end.

Why McCafé Is Expanding So Quickly

McCafé is not a standalone coffee shop—it’s integrated directly into McDonald’s restaurants. With over 1,700 McDonald’s locations in China (expected to reach 2,000 by the end of 2013), McCafé benefits from massive existing infrastructure. Most McCafé counters are located inside McDonald’s outlets, allowing rapid scaling without the need for standalone real estate deals.

This strategy gives McCafé a critical advantage over independent coffee chains. Rather than building new storefronts from scratch, McCafé leverages McDonald’s well-established supply chain, customer traffic, and brand recognition to grow its coffee business quickly and efficiently.

How McCafé Matches and Beats Competitors

As of 2013, Starbucks had around 700 stores in China and planned to open 300 more that fiscal year, targeting 1,500 stores by 2015. McCafé, entering the market much later—in 2012—was already on track to surpass that pace with its 750-store goal.

Meanwhile, Pacific Coffee, which entered the mainland market in 2011, had just 160 stores and aimed for 250 by the end of 2013—a growth rate of around 90 new stores in one year. Pacific Coffee benefits from backing by China Resources Holdings, which provides retail expertise and distribution strength. But McCafé’s expansion is even more aggressive, fuelled by McDonald’s restaurant network.

In the Greater Bay Area, McCafé has already outpaced Starbucks in store count, making it the region’s largest coffee retail chain by location numbers. This is significant, as Guangzhou and Foshan represent some of the most competitive and fastest-growing coffee markets in China.

What This Means for Coffee Retail in China

McCafé’s aggressive rollout reflects a broader shift in the Chinese coffee market. As competition intensifies among global and local chains, convenience and brand trust are becoming key differentiators. McDonald’s, with its deep roots in Chinese consumer behaviour and massive footprint, is using McCafé to broaden its appeal beyond burgers and fries—especially to younger customers who are increasingly coffee drinkers.

According to industry analysts, McCafé helps McDonald’s compete not only with other fast-food giants like KFC (which has over 4,000 outlets in China) but also with dedicated coffee chains. The addition of a credible coffee offering keeps customers in-store longer and opens up new revenue streams beyond breakfast.

Frequently Asked Questions

How many McCafé stores were there in China by the end of 2012?

There were 516 McCafé stores across China by the end of 2012.

What was McCafé’s store growth target for the end of 2013?

McCafé aimed to have over 750 stores in China by the end of 2013, representing a 45% increase from 2012.

How many McCafé stores were in Guangzhou and Foshan by late 2013?

By late 2013, McCafé had over 100 stores in the Guangzhou and Foshan area, with a target of 130 stores by the end of the year.

How does McCafé’s growth compare to Starbucks in China?

Starbucks had around 700 stores in China in 2013 and planned to reach 1,500 by 2015. McCafé, entering later, aimed for 750 stores by the end of 2013 and grew faster by leveraging McDonald’s existing restaurant network.

Does McCafé operate as standalone coffee shops or inside McDonald’s?

McCafé is primarily operated inside McDonald’s restaurants. Most McCafé counters are located within McDonald’s outlets, allowing fast and cost-effective expansion.

Which coffee chain grew the fastest in 2013 in terms of new openings?

McCafé aimed to add over 200 stores in one year, while Pacific Coffee planned to open around 90 new locations. McCafé’s expansion was the fastest due to integration with McDonald’s restaurants.

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