How Major Coffee Chains Plan to Expand in China

As global investors continue pouring into China’s retail sector, international coffee brands are racing to claim space in its bustling urban centers—even as broader retail growth slows. For coffee drinkers and industry watchers, the big question is: just how aggressively are these companies expanding, and where are they focusing their efforts?

Starbucks, Costa Coffee, and Café Bene all have aggressive expansion plans in China, with Starbucks operating nearly 1,200 stores, Costa aiming for 2,500 by 2018, and Café Bene targeting 1,000 locations by August of the same year. These moves reflect confidence in China’s long-term consumer potential despite current economic headwinds.

Shopping Malls Remain Top Choice for Retail Expansion

According to a recent CBRE report—Asia Pacific Retailers’ Attractiveness Survey—64% of international retailers plan to open at least one new store in mainland China this year. That’s far higher than in Vietnam, Hong Kong, or Singapore. Among those planning rapid growth, fashion brands, cafés, and F&B retailers show the most ambition, with mid-tier and mass-market fashion labels leading the charge. Shopping malls remain the preferred location due to reliable foot traffic and established retail environments.

Starbucks: Still Room to Grow in China

Starbucks’ second-quarter results showed a 7% year-on-year increase in China revenue—but that wasn’t enough for CEO Howard Schultz. He has stated publicly that the chain’s current store count in China, around 1,200, is insufficient. Though facing strong competition from Costa and newcomer Café Bene, Starbucks continues to see the market as underpenetrated and ripe for further development.

Competitors Are Moving Fast

Costa Coffee, a major rival, has announced plans to grow to 2,500 stores in China by 2018, with the goal of capturing one-third of the country’s coffee chain market. Meanwhile, South Korea’s Café Bene plans to surpass 1,000 stores in China by August of the survey period. Both brands are positioning themselves to challenge Starbucks’ dominance in the coming years.

Why China Still Looks Attractive to Retailers

CBRE’s Asia-Pacific research director, Edmond Hui , notes that while China’s overall economic growth has slowed, key drivers such as rising consumer spending power and growing enthusiasm for Western fashion and services remain strong. These factors continue to make China an appealing destination for international retailers.

Top Cities for Investment

When it comes to city choice, Beijing and Shanghai top the list, receiving 36% of investor interest. Together, they are home to 30% of China’s millionaires. More than half of the surveyed retailers believe that despite slower regional growth, individual consumer demand is still on the rise—making now an ideal time to expand. CBRE also forecasts that the Asia-Pacific region could outperform other major global economies in growth this year.

Frequently Asked Questions

How many Starbucks stores are currently in China?

As of the report, Starbucks operates nearly 1,200 stores in China. CEO Howard Schultz has stated that this number is still insufficient given the market’s potential.

What are Costa Coffee’s expansion goals in China?

Costa aims to have 2,500 stores in China by 2018 and believes it can capture one-third of the country’s coffee chain market share.

How many Café Bene stores does the brand plan to open in China?

Café Bene plans to have over 1,000 stores in China by August of the reported year.

Which Chinese cities are most attractive for retail investment?

Beijing and Shanghai are the most attractive, chosen by 36% of respondents. They are home to 30% of China’s millionaires and offer strong consumer demand.

Why are international retailers still expanding in China despite slower retail growth?

Investors are drawn by rising consumer spending power, increasing interest in Western products, and the large potential customer base, especially in major cities.

What types of retailers are expanding most aggressively in China?

Fashion brands, cafés, and food & beverage retailers—especially mid-tier and mass-market fashion labels—are showing the highest expansion ambitions.

Recommended FrontStreet Beans for Coffee Shops

For café operators in China’s expanding market, FrontStreet Coffee’s Ethiopia Huakui offers bright citrus and floral notes with a juicy body—perfect for pour-over focused shops. The PWN Golden Mandheling delivers a classic balanced profile with almond and brown sugar sweetness, ideal for espresso blends. Finally, the Kenya Little Tomato brings winey acidity and berry tones, great for single-origin offerings. All three are well-suited to China’s growing specialty coffee demand. Freshly roasted within 5 days · Orders placed before 17:00 ship the same day · Next-day delivery across most of Guangdong Province.