Four Coffee Shops in One Tower: Shenzhen's Rapid Cafe Expansion

Walk into the newly built Excellence Century Center in Shenzhen’s Futian CBD, and you’ll find an unexpected density: four similar coffee shops sharing one skyscraper. That’s not a fluke — it’s the sharp end of a national trend, as global and local coffee chains race to plant flags across China’s booming urban centers.

As of this year, major players like Starbucks, COSTA, Pacific Coffee, and even McDonald’s McCafé have opened dozens of new stores across China, with some chains adding multiple locations per week. In one building alone in Shenzhen, four competing coffee retailers have set up shop.

China’s Coffee Chain Boom

On October 16, Li Xianglu, Director of China Operations for Éclat Coffee , revealed the company had accelerated expansion dramatically. In late 2011, Éclat had just four stores in Shenzhen. This year alone, it has opened six new outlets in the city, with plans to add another three to four before the year ends. Li says the strategy is both reactive and proactive: “Many think Huachengbei’s fast-moving crowds don’t match coffee’s slower pace, but we aim to meet demand — and create new ones.”

This push isn’t isolated. International coffee giants are making aggressive moves across the country. According to COSTA’s official site, the brand opened nine new stores in mainland China during September alone — nearly one store every three days. Meanwhile, Pacific Coffee, owned by Hong Kong-listed retailer CR Vanguard, now operates 100 stores on the mainland and plans further expansion into second-tier cities. Even McDonald’s is upgrading its stores to include dedicated McCafé sections as a new profit channel.

Major Players Race to Claim Market Share

The rapid rollout isn’t limited to second- or third-tier markets. Starbucks, the world’s largest coffee chain, has publicly committed to operating 1,500 stores in China by 2015 — up significantly from previous years. Italy’s Lavazza has also launched a three-year plan to open 200 stores across China’s first- and second-tier cities.

COSTA, often seen as Starbucks’ strongest rival in the UK and now China, is targeting 250 new stores within three years. Its expansion pace has outstripped many competitors. Backed by parent company CR Vanguard, Pacific Coffee — already well established in Hong Kong with 110 stores — received a more than ¥300 million investment to expand into mainland China. The brand opened 50 stores in 2013 alone in major cities including Shanghai, Beijing, Guangzhou, Shenzhen, and Hangzhou, with a long-term goal of 1,000 stores nationwide. McDonald’s, too, plans to add 65 standalone McCafés in Beijing, Shanghai, Guangzhou, and Shenzhen.

Why the Rush?

Despite fears of oversupply in high-traffic districts — such as the cluster of four similar cafes in one tower in Shenzhen — industry leaders remain optimistic. “Some areas are getting crowded,” admits Li Xianglu, “but the overall growth potential is still huge.”

Part of the confidence comes from market fundamentals. According to Pacific Coffee CEO Tang Guojiang, annual per capita coffee consumption in mainland China is just 0.1 cup, compared to 4 cups in Hong Kong, 35 in Taiwan, and 107 in Japan. With coffee consumption still in its infancy, the market is poised for massive growth. “If per capita consumption in China could reach just half of Hong Kong’s level, that’s 20 times the current amount,” Tang says. “Business could really scale up.”

Tang also highlights the strategic backing of CR Vanguard, Pacific Coffee’s parent company. “CR Vanguard runs major retail brands like Vanguard supermarkets and is highly experienced in the Chinese market. Their logistics and retail expertise give us a solid foundation.” He adds that while the company isn’t currently considering an IPO, strong growth may open that path in the future.

Frequently Asked Questions

How many coffee shops did Éclat Coffee open in Shenzhen in 2013?

Éclat Coffee opened six new stores in Shenzhen in 2013 and planned to add three to four more before the end of the year, bringing significant growth from just four locations in 2011.

How many new stores is COSTA opening in China?

COSTA opened nine new stores in mainland China in September 2013 alone — nearly one store every three days — as part of its aggressive expansion strategy.

What is Pacific Coffee’s expansion goal in China?

Pacific Coffee, which already has 100 stores in China, opened 50 new locations in 2013 and has a long-term target of 1,000 stores nationwide.

How much coffee does the average person in China drink per year?

The average person in mainland China consumes just 0.1 cup of coffee per year, compared to 4 cups in Hong Kong, 35 in Taiwan, and 107 in Japan.

Which cities are major coffee chains focusing on in China?

Major coffee chains are primarily expanding in first-tier cities like Beijing, Shanghai, Guangzhou, and Shenzhen, with plans to move into second-tier cities as well.

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