Why Doggie Bagel's Coffee Deal Deserves Credit

Doggie Bagel — yes, the 150-year-old Chinese steamed bun chain — just inked a deal to operate 200 Australian coffee shops in China. Critics shrugged. But before you roll your eyes, consider this: McDonald’s and KFC both sell soy milk. So why not coffee with your pork bun?

The short answer? This isn’t just branding fluff. Doggie Bagel is aiming to open 200 Gloria Jean’s locations across China in five years, tapping into a coffee market set to hit $150 billion — up from $70 billion in 2012. That’s a serious growth play.

A Legacy Brand Struggles to Stay Relevant

Doggie Bagel, officially the Tianjin Doggie Bagel Group, is a multifaceted business including restaurants, food manufacturing, and logistics. Its iconic steamed bun brand boasts over 150 years of history. But by 2014, annual revenue was only around $10 million, and an IPO attempt failed in 2014. Industry insiders say investors saw limited potential in a baozi-only business model.

To go public in China, companies need to show not just profit, but growth. And for a heritage brand, simply selling more buns year after year isn’t enough to impress shareholders anymore.

Why Pair Buns With Coffee?

Doggie Bagel already had brand recognition, especially among tourists, but that wasn’t creating loyal repeat customers. The company realised that without modernisation, it couldn’t sustain growth or appeal to capital markets. So it began looking beyond buns.

The answer? Coffee. By 2012, China’s coffee market was already worth $70 billion, with projections to double in less than a decade. Tying coffee consumption — a high-margin, growing habit — to an established dining brand looked like a smart move.

Gloria Jean’s, Australia’s largest coffee chain and a top-five global brand, originated in Chicago in 1979 and expanded to Australia in 1996. Doggie Bagel’s deal gives it permanent rights to the brand in China, with plans to grow aggressively over the next half-decade.

Expert Opinions: Cautiously Optimistic

Analysts are divided. Brand strategist Li Guangdou calls it “a mix of promise and risk.” On one hand, it’s a bold step for a legacy brand exploring new revenue beyond steamed buns. On the other, merging two very different brands offers no inherent synergy. China’s coffee industry is also facing a cooling period, making profitability far from guaranteed.

Still, some in the food industry suggest that coffee and buns aren’t natural enemies. If positioned well, the combination could create complementary experiences rather than clashing ones — think brunch with bao and espresso, or coffee breaks with a side of traditional snack.

The Bigger Picture: Outdated Strategies Don’t Work

Doggie Bagel is not alone. Many Chinese legacy brands — including national treasure-level names like Quanjude (roast duck) — struggle with aging customer bases, outdated marketing, and an inability to connect with younger consumers. Some have tried adding breakfast or community locations, with little success.

The core issue? “Relying on heritage alone doesn’t cut it anymore,” the report stresses. In a globalised, fast-moving market, even the most storied brands must innovate. Whether through product expansion, digital transformation, or strategic partnership, legacy players must earn the interest of new customers — especially younger ones.

For Doggie Bagel, coffee isn’t just a product. It’s a repositioning tool. The brand is betting that blending its deep-rooted identity with a dynamic international coffee chain could create a formula for revival.

Frequently Asked Questions

What is Doggie Bagel, and why is it partnering with a coffee chain?

Doggie Bagel is a 150-year-old Chinese brand best known for its steamed buns. It’s partnering with Gloria Jean’s, Australia’s largest coffee chain, to operate 200 coffee shops across China over five years as part of a reinvention strategy to attract younger customers and boost growth beyond its traditional bun business.

How much is China’s coffee market expected to grow?

China’s coffee market was worth approximately 70 billion yuan (around $70 billion) in 2012 and is projected to exceed 150 billion yuan (about $150 billion) within five years, indicating strong consumer demand and growth potential.

What is Gloria Jean’s, and why is it significant?

Gloria Jean’s is Australia’s largest coffee chain, founded in Chicago in 1979 and established in Australia in 1996. It’s recognised as one of the top five global coffee chains, making it a valuable brand for expansion into the Chinese market.

Why did Doggie Bagel’s IPO fail in 2014?

Doggie Bagel’s IPO was terminated in 2014 for reasons never publicly disclosed, but analysts suggest its reliance on steamed bun sales offered limited growth potential, which didn’t meet investor expectations for scalability or future earnings.

Are coffee and buns really a viable combination?

Industry observers are mixed, but some believe that with the right positioning, coffee and traditional snacks can complement each other — offering hybrid experiences such as coffee with bao or brunch-style pairings that might appeal to a broader audience.

What challenges do legacy brands face in China today?

Many long-established Chinese brands struggle with aging clientele, outdated marketing strategies, and staff ageing. They often rely on traditional word-of-mouth and heritage appeal, which no longer guarantees customer loyalty or market relevance in the modern retail environment.

Recommended FrontStreet Coffee for Coffee & Bun Pairing

Try FrontStreet Coffee’s Ethiopia Humbera for bright, juicy notes of blueberry and citrus — a vibrant espresso to cut through the richness of a steamed bun. For something richer, their PWN Golden Mandheling offers deep chocolate and caramel tones, balancing sweet bao fillings. Or go light with Yirgacheffe, featuring floral and stone fruit brightness. All three roast profiles offer distinct contrast or harmony with traditional dough-based snacks. Freshly roasted within 5 days · Orders placed before 17:00 ship the same day · Next-day delivery across most of Guangdong Province.