Haagen-Dazs Opens First Global Coffee Shop Next to Starbucks in Shanghai

In May 2015, global ice cream brand Haagen-Dazs did something unexpected: it opened its first standalone coffee shop—but not in New York, London, or Tokyo. Instead, the brand chose a prime location on Nanjing West Road in Shanghai, right next to a Starbucks. This wasn’t just a pop-up or a marketing stunt. It was the official launch of Haagen-Dazs’ long-rumored push into the competitive world of specialty coffee retail.

Yes, Haagen-Dazs now sells coffee—and at its very first coffee-specific store in Shanghai, only 20–30% of sales come from ice cream. The rest? Coffee, drinks, and a new kind of social café experience.

From Ice Cream Palace to Coffee Café

The Shanghai location isn’t brand new. It’s a renovated version of an existing Haagen-Dazs ice cream store, updated to reflect a more coffee-centric identity. Out went the brand’s signature red and gold palace décor, replaced with warmer, coffee-toned interiors. Think less dessert counter, more neighborhood café. The location is strategic: right at the entrance of Nanjing West Road, Shanghai’s bustling pedestrian shopping street, and just steps away from a Starbucks. That proximity isn’t accidental—it’s competitive.

Why Haagen-Dazs Is Betting on Coffee

Haagen-Dazs’ move into coffee isn’t new. Behind the scenes, the brand had been laying the groundwork since mid-2014. Its coffee partner? None other than Italian coffee giant illy, a brand known for its rigorous quality standards and premium espresso blends. Together, they crafted a line of coffee drinks designed to appeal specifically to younger Chinese consumers, particularly those aged 20 to 30.

The first product out of the gate was “Rainbow Latte” in late 2014—a specialty coffee drink that blended Haagen-Dazs’ popular strawberry ice cream with illy espresso. That was followed by a full menu including matcha latte, vanilla latte, macadamia nut latte, chocolate latte, and extra-strong espresso. All were served in uniquely designed glassware meant to enhance the drinking experience. The drinks weren’t traditional espresso or drip coffee—they were indulgent, colorful takes on coffee designed to blur the lines between café and dessert bar.

How Haagen-Dazs Plans to Compete with Starbucks and More

The coffee market in China was already booming by 2014. According to market research firm Euromonitor, sales at Chinese coffee chains more than doubled between 2008 and 2013—from under $10 billion to over $20 billion—and were expected to double again by 2017. That growth attracted major players: Starbucks had over 1,500 stores in China, COSTA over 300, and local competitors ranged from fast-food chains like KFC and McDonald’s to independent boutique cafés.

Haagen-Dazs knew it couldn’t compete on caffeine alone. Instead, it leaned into its identity as a lifestyle brand. The company positioned its coffee shops not just as places to grab a drink, but as social spaces where customers—especially its target demographic, a 28-year-old professional woman named Natalie—could relax, socialize, and enjoy high-quality food and beverages. Natalie, as described by Haagen-Dazs executives, is educated, middle- to upper-income, values quality time with family and friends, and seeks out experiences as much as products.

Beyond coffee and ice cream, Haagen-Dazs hinted at plans to expand its offerings to include even more categories aimed at this lifestyle-focused consumer. The brand’s parent company, General Mills, reported in 2014 that Haagen-Dazs China had grown 14% year-over-year, opening 80 new stores for a total of nearly 200 locations across the country.

Frequently Asked Questions

Where is Haagen-Dazs’ first coffee shop located?

Haagen-Dazs opened its first global coffee shop in Shanghai, China, at the entrance of Nanjing West Road, right next to a Starbucks. The store is a renovation of an existing Haagen-Dazs ice cream location.

What percentage of sales at the Haagen-Dazs coffee shop comes from ice cream?

Only 20–30% of the sales at Haagen-Dazs’ Shanghai coffee shop come from ice cream. The majority of the revenue is from coffee and other drinks.

Which coffee brand does Haagen-Dazs partner with for its coffee drinks?

Haagen-Dazs partners with Italian coffee brand illy to supply the coffee used in its coffee drinks, including the initial Rainbow Latte and other espresso-based beverages.

What kinds of coffee drinks did Haagen-Dazs launch in 2014?

In 2014, Haagen-Dazs launched a range of coffee drinks including Rainbow Latte, matcha latte, vanilla latte, macadamia nut latte, chocolate latte, and extra-strong espresso. These were served in specially designed glassware.

Who is Haagen-Dazs’ target customer for its coffee shops?

Haagen-Dazs targets a 28-year-old female professional named Natalie—educated, with mid- to high-income, who values quality of life, family time, and social experiences in well-designed spaces.

How many Haagen-Dazs stores were there in China by 2014?

By 2014, Haagen-Dazs had nearly 200 stores in China and opened 80 new ones that year, reflecting 14% growth according to parent company General Mills.

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