How 10 Global Coffee Chains Expanded in China

When foreign coffee giants first landed in China over two decades ago, few expected smooth sailing. These companies—renowned for innovation abroad—struggled to replicate their success in a market with different consumer habits, fierce local competition, and complex expansion challenges. Their journeys reveal what it really takes to grow in China’s evolving coffee scene.

Since 1999, ten major international coffee chains have entered China: Starbucks, Doutor, Tchibo, Costa, Second Cup, Diedrich, Brea , McCafe, Segafredo Zanetti, and Coffee Bean & Tea Leaf. Yet only a handful, like Starbucks and Costa, achieved notable scale, while others either retreated or never gained traction.

1. Starbucks: The Pioneer with Big Plans

Starbucks, founded in 1971 in the U.S., is the world’s leading specialty coffee retailer. It entered China in 1999 and had over 430 stores across Greater China (including Hong Kong, Macau, and Taiwan) by the early 2000s, with roughly 200 in mainland China. The company established its Greater China headquarters in Shanghai in 2005 and aimed to make China its largest international market outside the U.S., focusing on tier-two city expansion and deep local cultural integration.

2. Doutor: Japan’s Budget Coffee Model Fizzles in China

Founded in Japan in 1962 by Toriba Hiroshi, Doutor grew to 1,222 stores by targeting budget-conscious older consumers with low prices (around 200 yen per cup) and a casual atmosphere. Its success in Japan faded after Starbucks’ premium model took over, and Doutor never expanded meaningfully in China—only opening a few scattered outlets in Taiwan.

3. Tchibo: The German Retailer Testing Quietly

Tchibo, Germany’s fifth-largest coffee seller (founded in 1949), is known for selling more than just coffee—including items like telescopes and drills—alongside its brews. In China, the company took a cautious approach, focusing on office and commercial area pilots rather than rapid expansion, reflecting its German precision and market research focus.

4. Costa: British Coffee with Italian Roots

Founded in London in 1971 by Italian brothers Sergio and Bruno Costa, Costa is famed for its Italian-style slow-roasted beans and 27 unique production steps. Backed by strong UK loyalty (90% brand recognition in YouGov polls), Costa aimed to open 300+ stores in China and potentially more, having already launched over 20 outlets in Shanghai by the early 2000s.

5. Second Cup: Canada’s Market Leader That Couldn’t Crack China

Based in Canada, Second Cup operated 382 stores nationwide and led the market with 31–33% share (vs. Starbucks’ 24–29%) through superior service and a specialty retail model. Despite outperforming Starbucks at home, its several failed attempts to enter China showed the limits of its franchise model abroad.

6. Diedrich: A U.S. Coffee Grower Turned Retailer

Diedrich Coffee, founded in 1983 in the U.S. by Martin Diedrich, emphasized high-quality beans and diverse offerings. Though it became the second-largest U.S. coffee retailer, its China presence remained minimal, with no significant expansion reported during the early 2000s.

7. Brea : The Canadian Chain with a Franchise Edge

Brea , founded in 1992 in Vancouver, operated over 300 outlets across North America and Asia. Known for its “BEING BETTER, NOT BIGGER” quality philosophy and distinctive store designs, Brea believed its franchise model was better suited to China and offered extensive support to potential partners, though it faced challenges establishing a major foothold.

8. McCafe: McDonald’s Coffee Push in Select Markets

Launched in Australia in 1993, McCafe grew to 300+ stores globally, offering European-style coffee and snacks. It entered Hong Kong and Beijing in the 2000s with standalone locations, and McDonald’s announced plans to add coffee bars to 14,000 U.S. locations in 2008—but a full-scale China rollout never materialized.

9. Segafredo Zanetti: Italy’s Espresso Specialist

Founded in 1962 by the Zanetti family, Segafredo Zanetti became synonymous with Italian espresso, operating 350 stores in 30 countries by the early 2000s. It acquired Finnish and UK chains and aimed to expand by 1,000 more outlets globally. In China, it maintained a slow, wholly owned expansion with just four Shanghai outlets.

10. Coffee Bean & Tea Leaf: Blending Two Worlds

Established in 1963 in California by Herbert and Mona Hyman, Coffee Bean & Tea Leaf combined coffee and tea offerings, pioneering the concept in the U.S. Taken over by Singapore’s Sassoon brothers in the late 1990s, the brand gained international reach, though its China expansion details remained limited in the original report.

Frequently Asked Questions

Which global coffee chain has the most stores in China?

Starbucks leads with over 430 stores across Greater China, including around 200 in mainland China, as of the early 2000s. It has continued expanding since then.

Did any coffee chain fail in China?

Several chains, such as Doutor and Second Cup, either retreated or never gained significant market share despite efforts, due to pricing, positioning, or expansion challenges.

Why did Costa focus on slow-roasted Italian coffee in China?

Costa emphasized its Italian heritage with a unique 27-step roast process and slow-roasted beans, aiming to attract customers with authentic, high-quality coffee experiences.

What was unique about Tchibo’s retail approach?

Tchibo differentiated itself by selling non-coffee items like electronics and tools alongside coffee, though in China it adopted a cautious, research-driven expansion strategy.

Did any Canadian coffee chains succeed in China?

Brea attempted to enter China with a franchise model and strong operational support, but did not achieve large-scale success.

How did McDonald’s McCafe try to enter the Chinese market?

McCafe opened standalone locations in Hong Kong and Beijing and planned to integrate coffee bars into U.S. McDonald’s locations, but did not roll out widely in China.

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