How Korean Coffee Chains Expanded Rapidly in China

In recent years, Chinese consumers have shown a growing appetite for coffee, driving up retail sales. This trend hasn’t gone unnoticed by South Korean coffee chains, several of which have moved aggressively to capture market share. Their rapid rollout—often numbering in the hundreds of outlets—is raising eyebrows in the specialty and retail coffee sectors.

By 2014, Cafe Bene had opened 145 stores in just two and a half years after entering China, and aimed to hit 1,000 locations nationwide. Other Korean brands including HollysCoffee, Mangosix, and Waffle Bant were also scaling quickly, targeting urban youth and expanding store networks across the country.

Korean Brands Surge Into China’s Coffee Market

Korea-based Cafe Bene opened 132 stores in China during 2013 alone, bringing its total to 145 locations by year-end. This followed an initial entry with just 13 shops in 2012. The brand projected further growth, targeting 1,000 Chinese outlets. Its local operator credited rising Chinese interest in coffee with fueling this aggressive expansion.

HollysCoffee debuted in Beijing in July 2012 and had established eight stores across China by the time of reporting. Recognizing shifting tastes among younger Chinese, the brand planned to introduce more tea and coffee items tailored to local palates.

Other players were also making moves. Mangosix had opened three outlets in China by the previous year and projected up to 3,000 locations within a decade. Waffle Bant, meanwhile, planned to open at least ten stores in 2014 through a partnership with a Chinese firm, aiming to boost its overseas brand visibility.

What’s Driving the Expansion?

The broader Chinese coffee market was expanding rapidly, with retail coffee sales hitting 2 trillion Korean won by year-end 2013. Industry watchers noted double-digit annual growth, supported by rising demand from urban consumers, especially younger demographics.

“The Chinese foodservice market is huge, particularly as coffee consumption grows,” said one industry expert. “Korean brands are still in the early stages of market entry, focusing first on gaining market share.”

Long-Term Strategy vs. Short-Term Growth

While rapid expansion was the immediate goal, analysts warned of challenges ahead. “As the market matures, brand competition will intensify,” cautioned a retail analyst. “Korean coffee companies need long-term development plans to sustain their presence once saturation sets in.”

Store count wasn’t the only focus—many brands were also adapting menus and marketing strategies to align with local consumer preferences. The initial emphasis on rapid footprint growth was expected to give way to more nuanced brand-building efforts as saturation neared.

Frequently Asked Questions

How many Cafe Bene stores were there in China by the end of 2013?

By the end of 2013, Cafe Bene had opened 145 stores in China. This was up from 13 locations in 2012 and included 132 new stores opened in 2013 alone.

What was Cafe Bene’s target for store numbers in China?

Cafe Bene aimed to open 1,000 stores across China as part of its expansion strategy by the early 2010s.

Which other Korean coffee brands entered the Chinese market around the same time?

Besides Cafe Bene, brands like HollysCoffee, Mangosix, and Waffle Bant also entered or expanded in China during the early 2010s. HollysCoffee opened its first store in Beijing in 2012, Mangosix had three outlets by 2013, and Waffle Bant planned to open at least 10 stores in 2014.

How big was China’s coffee market in 2013?

By the end of 2013, China’s coffee market had reached 2 trillion Korean won in retail sales, with the industry reporting double-digit annual growth.

Why were Korean coffee brands expanding so quickly in China?

Korean brands were targeting the rising demand for coffee among Chinese consumers, particularly younger demographics. They saw an opportunity in the underpenetrated but fast-growing market and moved to establish a foothold through rapid store openings and localized products.

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