Pacific Coffee vs Starbucks: Why China Resources Gives It an Edge

Pacific Coffee wants 1,000 stores in China—but right now, it has just 13. Its newest, in Beijing’s Guomao district, is only the third location opened on the mainland this year. With such a small footprint, how can it hope to rival Starbucks, a global giant with thousands of outlets already entrenched in every major Chinese city?

The short answer: Pacific Coffee plans to have 50 mainland stores by the end of 2024, all company-owned. Backed by China Resources Vanguard, it claims advantages in government ties, supply chain access, and logistics that could help close the gap—slowly.

A Long Road to 1,000 Stores

Pacific Coffee, founded in Hong Kong in 1992, has changed hands multiple times. In 2005, China Resources' subsidiary, China Resources Vanguard, took control through a series of acquisitions, becoming its ultimate operating parent. CEO Thomas Tong said the brand aims for 50 mainland outlets by the end of 2024, starting with a focus on first-tier cities: Beijing, Shanghai, Guangzhou, and Shenzhen.

“We plan to expand our mainland company-operated stores to 50 by the end of this year,” Tong revealed. He struck a cautious yet optimistic tone. But these four cities are already Starbucks strongholds, and costs—rent, labor, ingredients—are rising fast.

Why Pacific Coffee Thinks It Can Catch Up

Pacific Coffee believes its ties to China Resources Vanguard provide hidden strengths. These include better access to government relations, established market infrastructure, and an efficient logistics network—all critical for scaling physical retail quickly in China. Tong admits competition is tough, especially in tier-one cities where Starbucks dominates, but he sees these behind-the-scenes resources as differentiators.

“Compared to Starbucks, we have more convenient government relations, market resources, and logistics support thanks to our backing by China Resources Vanguard,” Tong said. That backing may allow Pacific Coffee to move faster on expansion than a standalone international brand could.

The Reality of China’s Coffee Market

Despite ambitious plans, the market isn’t yet primed for mass coffee consumption. For most Chinese consumers, coffee remains a luxury or fashion statement rather than a daily habit. While a single specialty coffee can cost 45 RMB in cafes, few people make coffee at home using beans. Instead, the market splits between instant coffee at home and cafe visits for social or work occasions.

Coffee shops have become symbols of modern urban life—places for meetings, remote work, or casual socializing. For many young professionals, starting the day with a cup of coffee signals aspiration. The experience of being in a café matters as much as the drink itself. This cultural shift is what brands like Pacific Coffee and Starbucks are betting on.

Market Growth and Consumer Trends

Data from the Beijing International Coffee Industry Association and China International Trade Centre show China’s coffee consumption is growing fast—at roughly 15% annually, compared to just 2% globally. Since 1998, per capita coffee consumption in China has increased by around 30% each year. That growth is attracting players like Pacific Coffee, even if infrastructure and habits aren’t fully caught up yet.

The challenge? Convincing more Chinese consumers to see coffee not just as a trendy drink or status symbol, but as a regular part of their routine. Until then, expansion will rely heavily on urban hubs and aspirational spending.

Frequently Asked Questions

How many Pacific Coffee stores are there in mainland China currently?

As of the latest report, Pacific Coffee has 13 mainland stores, all company-operated. The first opened in Shanghai in April, followed by others including the Beijing Guomao location.

What is Pacific Coffee’s goal for store numbers in China?

Pacific Coffee aims to open 1,000 stores in China long-term. Its immediate target is 50 mainland company-operated stores by the end of 2024.

Which cities is Pacific Coffee focusing on for expansion?

The brand is prioritizing first-tier cities: Beijing, Shanghai, Guangzhou, and Shenzhen. These are also the cities where Starbucks has the strongest presence.

What advantages does Pacific Coffee have over Starbucks in China?

Pacific Coffee is owned by China Resources Vanguard, giving it access to better government relations, logistics infrastructure, and market resources within China, which may aid faster expansion.

Why is coffee still a luxury in China for many people?

Most Chinese consumers see coffee as a fashion or social statement rather than a daily habit. A single specialty coffee can cost around 45 RMB, and home brewing is rare.

How fast is China’s coffee market growing?

China’s coffee consumption is growing at approximately 15% per year, significantly higher than the global average of 2%. Per capita consumption has risen about 30% yearly since 1998.

Recommended FrontStreet Beans for Urban Coffee Culture

If you're exploring specialty coffee inspired by Pacific Coffee's urban-focused approach, try FrontStreet Coffee’s 2013 Yunnan Typica—a balanced medium roast with notes of nuts, chocolate, and black tea, ideal for newcomers. For something deeper, their Lintong Mandheling offers a bold, spicy profile with low acidity and flavors of toast and caramel. Both beans highlight the subtle, rich profiles often preferred in Asia’s coffee culture. Freshly roasted within 5 days · Orders placed before 17:00 ship the same day · Next-day delivery across most of Guangdong Province.