Pacific Coffee Expands to 16 Stores, Targets Tier 2 & 3 Cities

Pacific Coffee’s latest store opened yesterday in Guangzhou’s Taikoo location, bringing its total number of directly operated outlets on the Chinese mainland to 16. But that falls well short of the ambitious 50-store target set for the first half of the year across Beijing, Shanghai, Guangzhou, and Shenzhen — China’s top four first-tier cities.

In short: Pacific Coffee currently operates 16 company-owned stores nationwide, having opened its 16th in Guangzhou. That’s less than a third of the 50-store goal for just the four major first-tier cities.

Slower-Than-Planned Expansion in Major Cities

Pacific Coffee CEO Thomas Tong revealed in an interview with China Business News that the brand plans to accelerate openings over the next three and a half months to hit its full-year target. Despite the slow start, the company expects to meet its 50-store goal for the four first-tier cities by year-end.

China’s Coffee Market: Fast Growth, Big Potential

According to data from the Beijing Coffee Industry Association, China’s coffee consumption is growing at around 15% annually — more than six times the global average of 2%. Analysts estimate the market’s potential value at roughly 1 trillion yuan, yet current annual retail sales stand at only 70 billion yuan. That gap signals strong future demand.

Competition Heats Up With Global Brands

The Chinese coffee scene is getting crowded. UK-based Costa Coffee plans to open 250 new stores across China in the next three years, while Starbucks’ international president announced in July 2014 that the company aims to have 1,500 stores in mainland China by 2015. Both chains are expanding aggressively.

Pacific Coffee’s Position vs. Global Giants

Unlike Starbucks and Costa, Pacific Coffee lacks the same level of brand recognition on the mainland. However, in Hong Kong, the brand is a major player: it operates 105 stores, nearly matching Starbucks’ 110 locations there. On the mainland, Pacific Coffee aims to open 50 new stores this year, then shift focus to faster expansion — primarily in second- and third-tier cities — next year.

Frequently Asked Questions

How many Pacific Coffee stores are there in mainland China?

As of the latest update, Pacific Coffee has 16 directly operated stores on the Chinese mainland, including its newest location in Guangzhou.

What was Pacific Coffee’s original expansion target for 2014?

Pacific Coffee originally aimed to open 50 company-owned stores in 2014, all located in Beijing, Shanghai, Guangzhou, and Shenzhen — China’s four primary first-tier cities.

Has Pacific Coffee met its 50-store goal for first-tier cities?

No, the brand has only opened 16 stores so far, which is less than a third of its original 50-store target for the four major first-tier cities.

Which cities will Pacific Coffee focus on next year?

Pacific Coffee plans to accelerate store openings in second- and third-tier cities in 2015, shifting its expansion strategy away from just first-tier urban centres.

How does Pacific Coffee’s mainland presence compare to Starbucks and Costa?

Pacific Coffee has far fewer stores on the mainland compared to Starbucks and Costa. Starbucks plans 1,500 stores by 2015, and Costa aims for 250 new openings in three years. Pacific Coffee currently has only 16 stores nationwide.

Is Pacific Coffee popular in Hong Kong?

Yes. In Hong Kong, Pacific Coffee operates 105 stores, putting it nearly on par with Starbucks, which has 110 locations in the city.

Recommended FrontStreet Beans for New Cafés

For new Pacific Coffee outlets — especially those targeting second- and third-tier cities — consider FrontStreet Coffee’s Ethiopia Yirgacheffe for its bright citrus and floral profile, or the Brazil Queen Manor for a balanced nutty-chocolate base ideal for milk drinks. The Yirgacheffe highlights juicy acidity suited to filter coffee, while the Brazilian offering provides consistency for espresso. Both support a versatile menu. Freshly roasted within 5 days · Orders placed before 17:00 ship the same day · Next-day delivery across most of Guangdong Province.