How Korea’s Cafe Chain Cafe Bene Expanded in China

In late 2013, a Korean coffee chain called Cafe Bene was rapidly opening locations in Wuhan’s commercial districts. By January 2014, it had 16 stores in the city—and planned 30 more that year. But beneath the fast growth lay a mixed picture: just one of those shops was a company-owned store, and many franchises were struggling to turn a profit.

Korea’s Cafe Bene set an ambitious goal: 1,000 stores in mainland China by 2015 and a stock market listing. But with only one of 16 Wuhan outlets run by the company itself, and some franchises earning as little as $30 a day, the rapid expansion wasn’t guaranteed success.

What Was Cafe Bene’s China Strategy?

Unlike Starbucks and Costa, which relied on company-owned stores to enter China, Cafe Bene pursued aggressive expansion primarily through franchising. In November 2013, its first Wuhan location opened in Huayuan Avenue—the only company-run cafe in the city at the time, covering over 200 square meters with a monthly rent of around $11,000 and daily operating costs of $1,000. Its debut promotion (“Spend 58 RMB ($9) and get a mug signed by a Korean celebrity”) drove first-day sales of $2,100, with the next four days staying strong at around $1,600. But after that, daily revenue dropped to roughly $650, and the store reportedly operated at a loss from the start.

Shortly after, Cafe Bene decided to convert its second planned company store in Chuhehan Street into a franchise at the request of an investor. That location, over 500 square meters, became the brand’s largest in Wuhan.

How Much Did It Cost to Open a Cafe Bene Franchise?

Franchisees looking to open a standard 240-square-meter Cafe Bene store had to invest around $330,000. Profits were split 49% to the franchisee and 51% to the company. For example, the Guanggu World City location—over 200 square meters—required an upfront investment of about $190,000 from the franchisee alone. But performance varied sharply by location. While K11, Guangbitun, and Lingjiaohu outlets did relatively well, others like Nanhu 29th Street, Jiangxia, and Guanggu World City struggled. Staff at the Guanggu World City branch reported February daily sales as low as $3.

How Did Cafe Bene’s Growth Compare to Competitors?

Cafe Bene’s expansion outpaced another major Korean brand, ZOO COFFEE. For similar-sized locations, Cafe Bene’s setup cost around $25,000 more, with equipment alone about $30,000 more expensive. ZOO COFFEE also published detailed profit and loss projections, while Cafe Bene did not—citing varying conditions by location. The company later said it would calculate individual store performance metrics over time.

Launched in China in April 2012, Cafe Bene grew to over 70 stores by June 2013 and had nearly 300 outlets across 16 provinces and nearly 20 cities—including Beijing, Shanghai, Wuhan, Qingdao, Hangzhou, Chengdu, and Shenzhen—by early 2014. Its stated goal was 1,000 stores in China by 2015 and an IPO.

What Was Cafe Bene’s Track Record in Korea?

Cafe Bene began in South Korea with its first company store in March 2008. By July 2012, it had surpassed 800 locations combined between company-owned and franchised cafes. Its growth was so rapid that it earned the nickname “Cockroach Bene” in Korea. In 2009, the chain had just 12 stores; by 2011, that number jumped to 451, then hit 670 by September of that year. Out of 710 total locations in Korea, only 22 were company-operated—less than 3%. Despite this explosive growth, the brand saw a 190% drop in growth rate in its second year and an 83% drop in its third.

Frequently Asked Questions

How many Cafe Bene stores were in Wuhan in early 2014?

By early 2014, there were 16 Cafe Bene stores in Wuhan, with plans to open 30 more that year. Only one of those 16 was a company-owned store, located in Huayuan Avenue.

Was the Cafe Bene model based on company-owned or franchised stores?

Cafe Bene primarily expanded in China through franchising, unlike Starbucks and Costa, which focused on company-owned locations. Most Cafe Bene stores in Wuhan were franchises.

How much did it cost to open a Cafe Bene franchise?

A standard 240-square-meter Cafe Bene franchise required an investment of approximately $330,000. Franchisees and the company split profits 49% to 51%. Smaller locations, such as the 200-square-meter Guanggu World City store, required around $190,000 from the franchisee.

Did Cafe Bene provide profit projections for its stores?

No, Cafe Bene did not offer detailed profit and loss projections for individual stores, citing differences in location conditions. In contrast, ZOO COFFEE, another Korean brand, did provide such forecasts.

How quickly did Cafe Bene grow in China?

Cafe Bene entered China in April 2012 and had over 70 stores by June 2013. By early 2014, it had nearly 300 stores across 16 provinces and 20 cities, with a target of 1,000 stores and an IPO by 2015.

How did Cafe Bene’s growth compare to ZOO COFFEE?

Cafe Bene’s stores cost about $25,000 more to set up than ZOO COFFEE’s for the same size, with equipment alone $30,000 more expensive. ZOO COFFEE also offered clearer financial projections compared to Cafe Bene.