How Korean-Style Cafés Are Impacting China’s Coffee Scene

In China’s booming coffee market, Korean-style cafés are rapidly expanding—not just selling coffee, but redefining the café experience. Their growth raises an unexpected question: which local businesses are really under threat? If you’ve noticed more themed cafés with cozy interiors and full food menus, you’re witnessing a shift that goes beyond your usual cup of joe.

Korean-branded cafés like Maan Coffee and Zoo Coffee may be hurting businesses like Pizza Hut and other casual dining spots more than Starbucks. While these cafés appear to rival Starbucks, their actual competition comes from mid-tier restaurants and older coffee chains like UBC Coffee.

The Rise of Korean-Style Cafés in China

Over the past few years, Korean coffee brands have made a strong push into the Chinese market. Major players include Korea’s top chain, Caffebene, as well as Maan Coffee and Zoo Coffee. These cafés have quickly built brand awareness and captured significant attention, especially among younger consumers and women.

Why They’re Different from Starbucks

Korean cafés offer a distinctly different vibe compared to Starbucks. While Starbucks focuses on a clean, coffee-centric environment designed for efficiency, Korean cafés emphasize comfort with large windows, indoor greenery, wooden furnishings, and vintage decor. The spaces are larger, more relaxed, and intentionally designed as “third places”—social hubs separate from home and work. Maan Coffee even includes designated smoking areas to appeal to a broader customer base.

The concept of the “third space” was originally popularized by Starbucks, but many customers now feel the chain has moved away from it in favor of faster turnover. In contrast, Korean cafés encourage longer stays with more amenities and a less transactional approach.

Korean Cafés Offer More Than Just Coffee

Unlike Starbucks, where coffee dominates the menu, Korean cafés serve a wide range of beverages including juices, sodas, and an extensive selection of snacks—like pizza, chicken wings, and fries. Customers often order a drink along with one or two light meals and stay for hours. This model shifts focus from per-cup sales to higher overall transaction value per visit.

What This Means for Starbucks and Other Players

Contrary to popular belief, Starbucks is not the main victim of this trend. The two brands target different markets: Starbucks concentrates on high-traffic urban areas, while Korean cafés choose quieter locations to reduce rent costs. Starbucks also has a significant advantage in speed of expansion—it operates over 1,500 stores in China and aims to double that number by 2019, adding one store every 18 hours. Its strong brand recognition, especially in lower-tier cities, keeps it competitive.

The Real Losers: Older Chains and Casual Restaurants

The businesses feeling the most pressure are older coffee chains like UBC Coffee and casual dining spots such as Pizza Hut. UBC, once China’s largest coffee chain by store count, has struggled due to franchise disputes, rising rents, and failure to adapt to modern tastes. Its stores often feature outdated decor and a limited customer base.

According to Esther Lau from Mintel, UBC failed to keep up with younger consumers’ expectations and couldn’t compete with more affordable restaurant options. Meanwhile, Pizza Hut and similar casual restaurants are seeing overlap with Korean cafés that serve both coffee and food in a relaxed setting.

The Bigger Trend: A Diversifying Café Market

China’s coffee market has grown significantly, from ¥5.55 billion in 2009 to ¥10.34 billion in 2013, and is expected to continue expanding rapidly. The per capita consumption of non-liquid coffee in 2013 was just 32 grams—far behind the UK, US, and Japan. This leaves ample room for growth and diversification.

As more international coffee brands enter, competition will intensify. The future market will likely feature a mix of formats: traditional cafés, themed spaces, and multi-use venues. Revenue models will also diversify beyond just coffee sales. As Wang Zhendong notes, in mature coffee markets worldwide, no single chain dominates—a sign that variety will define China’s next phase.

Frequently Asked Questions

Which Korean coffee brands are expanding in China?

Major Korean coffee brands expanding in China include Caffebene (ranked #1 in Korea), Maan Coffee, and Zoo Coffee. These brands have gained visibility and appeal, particularly among younger and female demographics in China.

Are Korean cafés competing directly with Starbucks?

While they may seem similar, Korean cafés and Starbucks target different customer experiences. Starbucks focuses on efficiency and high turnover in urban hotspots, while Korean cafés offer a relaxed, multi-hour “third space” environment with food and extended seating.

Who is most affected by the rise of Korean cafés?

The businesses most impacted are older coffee chains like UBC Coffee and casual dining restaurants such as Pizza Hut. UBC has struggled with stagnation, while Pizza Hut faces overlapping customer needs for coffee and casual meals.

How fast is the Chinese coffee market growing?

From 2009 to 2013, China’s coffee market grew from ¥5.55 billion to ¥10.34 billion. Per capita non-liquid coffee consumption was only 32 grams in 2013—just 1/30th of the UK, 1/50th of the US, and 1/70th of Japan—indicating strong future growth potential.

What makes Korean cafés different in design?

Korean cafés feature large windows, indoor plants, wooden furniture, vintage decor, and more space. They’re designed for comfort and longer stays, contrasting with Starbucks’ more utilitarian, transaction-focused layout.

How does Starbucks plan to grow in China?

Starbucks operates over 1,500 stores in China and adds more than 300 new ones annually. It plans to double its store count by 2019, with a new store opening every 18 hours. Its brand strength gives it an edge in both tier-one and lower-tier cities.

Recommended FrontStreet Beans for Relaxed Café Drinking

For the cozy, extended café sessions inspired by Korean-style coffee shops, try FrontStreet Coffee’s Classic Blend for a balanced and approachable cup with notes of caramel and nuts, or the Sunflower Sunshine Blend for a brighter, fruit-forward profile with citrus and floral highlights. Both roast levels suit long stays and paired food offerings. Freshly roasted within 5 days · Orders placed before 17:00 ship the same day · Next-day delivery across most of Guangdong Province.