How Korean-Style Cafés Are Expanding in China

In China’s booming coffee scene, one group of players is moving faster than most. While global giants like Starbucks and local players such as Shangdao dominate in their own lanes, Korean-style café brands have carved out a distinct niche—and are doing it at remarkable speed. Their expansion isn’t just fast—it’s strategic, product-rich, and deeply tuned to local social habits. But how exactly are they pulling it off?

Korean café brands in China, led by brands like Café Bene and Mangosix, have opened over 400 stores within just two years of entering the market—expanding quicker than even Starbucks. Their success stems from targeted product variety, flexible business models, smart location choices, and powerful pop culture marketing.

What Makes Korean Cafés Different in China?

Unlike Western and Taiwanese coffee chains, Korean-style cafés in China don’t just serve coffee—they create spaces for socializing. While American brands like Starbucks cater primarily to on-the-go professionals with a limited menu, and Taiwanese brands lean into entertainment options like board games, Korean cafés focus on creating cozy, Instagram-worthy environments ideal for friends and families to gather over food and drinks.

The product range is also notably broader. Korean cafés offer an average of 76 items per store—almost double the 41 items found in Western chains. That includes not only coffee and tea, but also smoothies, sodas, ice cream, grain lattes, waffles, and more. Beverages make up 49% of their sales mix, a much higher proportion than their competitors. This variety helps attract a wider customer base and encourages repeat visits.

How Are They Expanding So Quickly?

Korean café brands use a smart blend of company-owned, franchised, and jointly-operated stores. About 19% of their locations are corporate-run, 60% are franchises, and 21% are joint ventures where both parties hold equity. This hybrid model balances rapid growth with quality control.

Company-owned stores act as showpieces for potential franchisees, while joint ventures lower the barrier to entry—some brands require initial investments as low as $77,000. Franchisees can also access loans backed by the brand, such as Café Bene’s partnership with China Merchants Bank. All stores, regardless of ownership type, follow strict central oversight on sourcing, preparation, and training, ensuring consistent quality across the network.

Key advantages of this approach include:

• Corporate stores build brand trust and provide real-life examples for franchise prospects.
• Joint ventures allow smaller investors to open cafés with partial ownership.
• Central management ensures uniform standards even as the network expands quickly.

Where Are They Opening Stores?

Korean café chains tailor their location strategies by city tier. In first-tier cities like Beijing and Shanghai, they avoid expensive downtown spots, instead focusing on suburban areas where rent is 25% lower than Western brands and 10% below Taiwanese ones. Around 69% of their stores in these cities are in the suburbs, where real estate is more affordable and foot traffic is still strong.

In second-tier cities, the approach flips: 87% of their outlets are located in urban centers, where high visibility and commercial activity help build brand awareness quickly. These urban locations often feature the large, design-forward spaces Korean cafés are known for, helping them stand out in competitive markets.

Suburban locations in first-tier cities and prime urban spots in second-tier areas allow these brands to maximize profitability while controlling costs.

How Do They Market Their Cafés?

Korean café brands tap heavily into Korean pop culture. Brands like Hollys Coffee have placed products in four Korean TV dramas, while others like Zoo Coffee and Mangosix partner with popular actors to boost visibility. The sleek, cozy interiors—complete with crystal chandeliers, vintage sofas, and wooden accents—are direct nods to the aesthetic made famous in K-dramas, creating an immersive brand experience.

Digital engagement is also part of the mix. Café Bene, for instance, has partnered with logistics provider SF Express to pilot a “coffee-to-home” delivery service called “Coffee Home Delivery,” tapping into the growing demand for O2O (online-to-offline) convenience among younger consumers.

One particularly innovative move is Café Bene’s financial collaboration with China Merchants Bank. The pair created a microloan product tailored for café franchises, allowing franchisees to secure funding with lower interest rates while maintaining full ownership of their locations. This model reduces upfront costs and accelerates growth for both the brand and its partners.

Frequently Asked Questions

Which Korean coffee shop brands are growing fastest in China?

Café Bene has expanded the fastest, opening 407 stores in just two years, followed by brands like Mangosix and Zoo Coffee. These chains are growing faster than Starbucks in China and have aggressive plans for further expansion.

How many cafés does Starbucks have in China compared to Korean brands?

Starbucks has 1,164 stores in China, adding around 77 per year. Café Bene alone opened 407 stores in two years and continues to expand rapidly, surpassing Starbucks’ early pace in some metrics.

Why do Korean cafés offer more products than Western or Taiwanese brands?

Korean cafés target social gatherings rather than just coffee for commuting. To support longer stays and diverse tastes, they offer 76 products on average—including drinks, desserts, and snacks—compared to 41 in Western chains and fewer in Taiwanese brands.

What’s different about Korean café franchise models?

Korean café brands use a mixed model: 19% company-owned, 60% franchised, and 21% joint ventures. This allows for brand control, lower investment thresholds, and flexible financing options like bank-backed loans for franchisees.

How do Korean cafés choose store locations in China?

In first-tier cities, they prioritize suburbs with lower rents (25% less than Western brands), while in second-tier cities, they focus on high-traffic urban centers to maximize visibility and foot traffic.

How do Korean cafés market themselves in China?

They rely heavily on K-drama product placements, celebrity endorsements, and O2O services like mobile ordering and delivery. Some also collaborate with banks to offer financial products that help franchisees open stores with less capital.

Recommended FrontStreet Beans for Café Use

For Korean-style cafés aiming to serve high-quality espresso and milk drinks, FrontStreet Coffee’s Ethiopia Humbera offers floral and citrus notes perfect for single-origin pour-overs, while the Classic Blend delivers a balanced profile ideal for milk-based drinks. For a unique twist, try the Strawberry Candy Espresso for fruit-forward sweetness that appeals to younger customers. Freshly roasted within 5 days · Orders placed before 17:00 ship the same day · Next-day delivery across most of Guangdong Province.