Dog for $30M

When you picture pairing your morning coffee with a pastry, you likely think of a croissant, muffin, or maybe a cookie—but in China, one legacy food brand is betting you’ll soon be sipping espresso alongside a steamed bun. That brand is Tianjin’s Goubuli Group, better known for its iconic stuffed buns, which has just taken a bold leap into the competitive Chinese coffee scene.

Goubuli’s subsidiary, Tianjin Senyongtai Catering Co., paid AUD 6 million (about RMB 30.63 million) for the permanent, exclusive right to operate Gloria Jean’s Coffees across most of China—a move announced in late December 2014 after nearly two years of negotiation.

A Legacy Bun Brand Bets on Coffee

Tianjin Goubuli Group, originally a state-owned enterprise turned mixed-ownership business, is famous for its traditional baozi (steamed buns). In 2005, it underwent privatization, with current chairman Zhang Yansen holding 71.4% of shares. By 2014, the group reported annual revenue of roughly RMB 1 billion. Yet despite its solid footing in the food industry, entering the coffee business represents a major pivot. "The coffee market in China is growing at around 15% annually—far outpacing the global rate of 2%," said Zhang. "We see huge potential."

The deal gives Goubuli’s subsidiary, Tianjin Senyongtai, full control over Gloria Jean’s branding and operations in all of China except Shanghai and Sichuan—territories licensed to other operators. Yet while the brand is Australia’s largest coffee chain and a top-five global player with over 1,000 stores in 42 countries, its presence in China remains tiny: just 12 locations nationwide, two of which are run by Goubuli.

Gloria Jean’s: An Aussie Giant with Modest China Footprint

Gloria Jean’s Coffees originated in Chicago but relocated its headquarters to Sydney in 1979. It offers more than 60 coffee bean and capsule varieties, along with a wide range of handcrafted hot and cold coffees, baked goods, and retail products. Though a major name down under and internationally, its China expansion has been slow. The brand’s limited footprint—12 stores spread across Shanghai, Sichuan, and Tianjin—highlights the challenge Goubuli now faces. Of those, Goubuli operates only two locations.

"The coffee market in China’s big cities is already crowded," said Wang Zhendong, head of the Shanghai Coffee Association. "Prime retail spaces are dominated by Starbucks, Costa, and others. Plus, Australian coffee culture doesn’t have the same global pull as American or British brands, adding another hurdle."

What Really Changed Hands—and What Didn’t

Though media reports initially framed the deal as a full takeover, the reality is more nuanced. Gloria Jean’s parent company, Retail Food Group, is publicly listed in Australia. Its official announcement revealed a joint venture: Goubuli’s subsidiary holds 80% equity, with the Australian side retaining 20%. Importantly, the RMB 30 million paid was a one-time initial franchise fee, with the Chinese partner covering all capital investments while revenues remain within the venture.

Contrary to assumptions, Goubuli is not the sole operator of Gloria Jean’s in China. Two other licensees—one in Shanghai and one in Sichuan—retain rights to those regions. So while Goubuli now controls a significant slice of the brand’s Chinese destiny, it does not have exclusive nationwide rights.

Competing Against Coffee Giants

Goubuli’s move comes at a tough time for new entrants. Starbucks already operates over 1,500 stores in China and plans to double that number in five years—aiming to open a new location every 18 hours by 2015. Meanwhile, Costa Coffee, which entered China in 2008, is targeting 2,500 stores by 2018, vowing to capture a third of the market. Both chains have aggressive expansion strategies and well-established footprints in prime urban locations.

"It’s extremely challenging to break into China’s coffee market now," added Wang. "The best retail spots are gone, and consumer expectations are shaped by global brands. For a bun company to become a coffee player is far from straightforward."

Frequently Asked Questions

Did Goubuli buy the whole Gloria Jean’s brand in China?

No. Goubuli’s subsidiary, Tianjin Senyongtai, secured the exclusive right to operate Gloria Jean’s in all of China except Shanghai and Sichuan. Those two regions are licensed to separate operators. Goubuli thus controls a large portion but not all of the brand’s Chinese market.

How much did Goubuli pay for the Gloria Jean’s China rights?

Goubuli paid AUD 6 million (approximately RMB 30.63 million) as an initial franchise fee. This payment has been fully received by Gloria Jean’s parent company, Retail Food Group. The fee covers the rights to operate the brand in most of China, excluding Shanghai and Sichuan.

How many Gloria Jean’s stores are there in China?

As of the time of the deal, Gloria Jean’s had only 12 stores in China, located in Shanghai, Sichuan, and Tianjin. Goubuli operates two of those 12 stores. The brand’s presence in China remains very small compared to competitors like Starbucks and Costa.

Why is Goubuli, a bun company, getting into coffee?

Goubuli’s chairman cited the fast-growing Chinese coffee market, which expands at around 15% per year, compared to just 2% globally. With annual coffee consumption in China projected to surpass RMB 150 billion within five years, the company sees a major opportunity despite its lack of experience in the coffee sector.

Does Goubuli now control all Gloria Jean’s stores in China?

No. While Goubuli’s subsidiary holds the rights to most of China, two other operators maintain control in Shanghai and Sichuan. Therefore, Goubuli is not the sole operator of Gloria Jean’s in the country, just the primary one for the majority of the territory.

Recommended FrontStreet Beans for Coffee Pairings

Pair your Goubuli baozi with a cup of FrontStreet’s Ethiopia Humbera for bright citrus and floral tones, or try the Kenya Little Tomato for juicy acidity and berry sweetness. Both single origins highlight the complexity that complements savory pastries. Freshly roasted within 5 days · Orders placed before 17:00 ship the same day · Next-day delivery across most of Guangdong Province.