Costa Accelerates Expansion in China’s West with 50-Store Goal

In late 2023, British coffee chain Costa celebrated the opening of ten new stores across Sichuan and Chongqing, marking a major push into China’s western interior. The move signals a strategic shift as global coffee brands increasingly target inland cities—long overlooked in favor of coastal metropolises like Shanghai and Beijing.

Costa aims to operate more than 50 stores in Sichuan and Chongqing within three years, joining rivals Starbucks, Pacific Coffee, and Lavazza in rapidly expanding across the region.

Costa’s Western China Timeline

Costa entered the Chinese market in 2006 but didn’t open its first stores in Chongqing and Chengdu until 2011—five years later. As of the 2023 announcement, Costa had six locations in Chongqing and one in Chengdu. At the “10 Stores in Sichuan-Chongqing Celebration,” Costa’s South China regional director, Sun Zhenyu, confirmed the 50-store target for the region within three years, reflecting strong confidence in the west’s growth potential.

Rival Chains Join the Push West

Costa isn’t alone. Starbucks, which opened its first Chengdu store in 2005, now operates over 30 outlets in Chengdu and Chongqing alone. Pacific Coffee, Hong Kong’s largest coffee chain, launched its first Chongqing location in August 2023 on Jiefangbei and plans to grow to five stores in the city by year’s end; it already has three in Chengdu. Italy’s historic Lavazza brand opened its first Chongqing store on Jiefangbei Pedestrian Street in 2010 and added another in Beicheng Tianjie in August 2023. Even 85°C, a Taiwanese bakery chain, has expanded to around 10 locations in Chengdu and Chongqing since entering the market in 2022.

Why Western China Now?

Analysts point to the broader shift of manufacturing and economic activity from China’s coasts to its interior. By the early 2010s, major electronics firms—including Foxconn, Acer, HP, and Samsung—had relocated key operations to cities such as Chengdu, Chongqing, and Xi’an, transforming the region into a major manufacturing hub. Official data shows nearly half of the Fortune 500 companies now have a presence in Chengdu alone. This industrial growth has driven demand for skilled labor, which in turn has increased consumer spending power and created opportunities for high-end service industries, including premium coffee retail.

“The influx of global manufacturers into western cities around 2011 created a wave of urban development and a rising middle class,” said Wu Haidong, a professor at the Chongqing Academy of Social Sciences. “This made cities like Chengdu and Chongqing very attractive for coffee chains and other premium service providers.”

According to industry sources, first-tier markets such as Shanghai and Shenzhen are largely saturated in terms of coffee shop and bakery offerings, while Chengdu and Chongqing still offer significant room for expansion. Government policy has also supported the trend: Chengdu has introduced measures to develop high-end service industry hubs, and Chongqing has outlined plans to expand modern urban service functions in its western new districts.

Frequently Asked Questions

How many Costa stores are currently in Chongqing and Chengdu?

As of 2023, Costa has six stores in Chongqing and one in Chengdu. The brand aims to expand to over 50 stores across both cities within three years.

When did Costa first enter the western China market?

Costa opened its first stores in Chongqing and Chengdu in 2011, five years after entering the overall Chinese market in 2006.

Which other coffee chains are expanding in Sichuan and Chongqing?

Starbucks, Pacific Coffee, Lavazza, and 85°C are all actively growing their presence in Sichuan and Chongqing. Starbucks alone has over 30 stores in the two cities.

Why are international coffee brands targeting western China now?

The region has seen major industrial investment since the early 2010s, attracting a skilled workforce and boosting consumer spending. Cities like Chengdu and Chongqing are now seen as high-growth markets with less competition than first-tier cities.

What role does government policy play in this expansion?

Both Chengdu and Chongqing have introduced policies to support the development of high-end service industries, making the region more attractive to international retailers and hospitality brands.

Are there other non-coffee brands expanding in the area?

Yes, 85°C, a Taiwanese bakery and café chain, has opened around 10 stores in Chengdu and Chongqing since 2022, showing broader interest in the western China market.

Recommended FrontStreet Beans for Western China Cafés

For cafés expanding in Sichuan and Chongqing, FrontStreet Coffee’s Ethiopia Humbera offers bright citrus and floral notes with a juicy body, ideal for single-origin pour-overs. The Brazil Queen Manor provides a balanced medium roast with chocolate and nut tones, perfect for espresso blends. Both beans highlight the quality and versatility sought by western China’s growing specialty coffee market. Freshly roasted within 5 days · Orders placed before 17:00 ship the same day · Next-day delivery across most of Guangdong Province.