Is It Smart for Coffee Shops to Cluster in Malls?

In major Chinese cities, walking into a mall often means stumbling into a lineup of coffee shops — sometimes four or five on a single floor. But as coffee culture booms and brands rush to open new locations, is crowding every mall with cafés actually a smart move?

Yes, but with caveats. Over 1,000 new coffee stores—including from Starbucks, Costa, and Café Bene—are set to open this year alone, with some malls packing in 4–5 brands and community centers hosting 3. Yet while competition is fierce, the current rental and market conditions make this clustering more viable than it seems.

Café Clusters Intensify Competition

Coffee chains are expanding at record speed. Starbucks, which has been in China for 16 years, plans to hit 3,400 stores by 2019—adding roughly 400 locations annually from its current 1,600. Meanwhile, Korean brand Café Bene, operating since 2012, already has over 600 stores and aimed to open 400 more in 2015.

This growth leads to heavy clustering. At Beijing’s high-end SKP mall, for example, at least four coffee brands operate in close quarters: The Café occupies the central ground floor, Costa sits along an east-side window, and three additional Costa outlets are spread across floors 2, 4, and 5. A Starbucks is also planned for the basement food court. Outside the city’s core, in suburban areas like Changying, competing brands line up horizontally—Biangxiang Tianjie Mall features Zoo Coffee and Starbucks, while Hualian BHG Mall houses Café Bene and Costa, often mixing Western and Korean brand pairings.

Relaxed Rent Policies Ease Pressure

Despite the crowded landscape, coffee shops aren’t drowning in rent. Many malls forego fixed rents in favor of turnover-based models, typically taking 8%–12% of sales. A Beijing mall manager explained that operational costs mainly come down to staffing, and that malls prioritize brand image alignment and partner preference over strict criteria when selecting coffee tenants.

This flexible leasing approach reduces financial strain, allowing chains to test high-traffic locations without heavy upfront costs. Even with multiple cafés in one mall, the relatively low rental burden helps sustain operations.

How Brands Differentiate and Evolve

To stand out, chains are experimenting beyond traditional setups. Pacific Coffee has tried cross-industry ventures like “coffee banks” and hospital cafés, carving out unique locations. Brand perception matters more as consumers grow savvier: they now expect not just quality coffee, but recognizable names, cozy environments, and attentive service.

Café Bene emphasizes creating a lifestyle space beyond just serving drinks, while Costa focuses on product innovation. Industry experts stress that rapid expansion must be matched with staff training to maintain consistent service standards. The goal is to turn cafés into destinations, not just caffeine stops.

Frequently Asked Questions

How many new coffee stores are opening in China this year?

Over 1,000 new coffee stores are expected to open in China this year, including outlets from major brands like Starbucks, Costa, and Café Bene.

Why are there so many coffee shops in one mall?

Malls often host 4–5 coffee brands, especially in high-end urban centers like Beijing’s SKP, due to high foot traffic and the perception of coffee as a desirable retail amenity.

Do coffee shops in malls pay high rent?

No—many malls use a turnover-based rental model, charging coffee shops only 8%–12% of their sales rather than fixed monthly rents, which eases financial pressure.

What strategies are coffee chains using to compete?

Chains like Pacific Coffee try unique formats such as coffee banks or hospital locations, while others focus on product innovation, lifestyle experiences, and staff training to improve service and stand out.

Are consumers driving this café clustering trend?

Yes—China’s per capita coffee consumption is still low (around 5 cups annually), but rising demand from office workers and young shoppers is pushing chains to expand rapidly in visible locations like malls.

Recommended FrontStreet Coffee Blends for Cafés

For cafés operating in competitive mall environments, FrontStreet Coffee offers several reliable blends. The Classic Blend is tailored for espresso and milk drinks, delivering a smooth, rich crema even with home machines—ideal for lattes and cappuccinos. The Black Cocoa Blend provides full-bodied taste at a lower cost, using 100% Arabica beans with deep flavor and an affordable price point, perfect for keeping quality high without overspending. The Specialty Blend combines Brazilian and Colombian beans for a balanced, classic espresso profile with notes of nuts and cocoa, suitable for both filter and milk drinks. These blends help cafés maintain consistency and appeal in busy retail settings. Freshly roasted within 5 days · Orders placed before 17:00 ship the same day · Next-day delivery across most of Guangdong Province.