How This Ex-Chef Makes Money Opening a Cafe Opposite Starbucks

When a new coffee shop opens across the street from a Starbucks, most people expect the independent to fold fast. But in Beijing’s Haidian district, one cafe not only survived — it thrived — despite opening right next door to the global coffee giant. So how did it pull it off?

The short answer: strong local demand, smart pricing, quality service, and a focus on office workers. Within a year and two months, the cafe had paid off its investment, even with Starbucks as a direct neighbor.

A Chef Turned Restaurateur’s Second Act

He Zongcheng wasn’t always in the coffee business. Originally from Chongqing, the self-described “country boy” arrived in Beijing in 2001 with dreams of making it big. His first job? Line cook in a Sichuan restaurant. “I was a rural guy with a dream to get rich,” he recalls. After working for three years, he saved some money, learned from top local chefs, and eventually opened his own place.

By 2003, confident in his understanding of Beijing’s dining scene, He opened his first Sichuan restaurant. Business took off. He capitalized on the 2008 Olympics to open a second location, then a third in 2011 — a flagship Sichuan eatery on Xidawang Road called Yuma Tou Chuan Cai Guan (Yu Wharf Sichuan Restaurant). In just over a decade, he went from kitchen staffer to multi-restaurant owner.

Why Open a Cafe? And Right Across From Starbucks?

With his restaurant business stable, He started looking for his next venture. A friend tipped him off about a vacant storefront in a high-end office complex — a spot that had sat empty for nearly two years due to poor location and high rent. Most landlords wouldn’t touch it. But He, after consulting his kids, saw potential.

“They convinced me not to open another Sichuan restaurant, but a coffee shop,” he says. The area housed major employers like Huawei, Huadian, and several accounting firms — yet there was no on-site café. “We weren’t just doing coffee. We also offered simple meals and lunchboxes,” he adds.

His children, who had never seen him drink coffee either, took him out for his first cup to help sell the idea. The cafe launched — but almost immediately hit a snag: for the first two months, it couldn’t serve food due to licensing delays, leading to losses. Then things turned around. Business exploded. Until Starbucks opened right across the street.

Surviving — and Thriving — Next to Starbucks

At first, He worried. “I thought, how can we compete with Starbucks?” To prepare, his team improved service and adjusted pricing. But rather than hurt business, the Starbucks opening seemed to help. “Our sales actually went up,” he says. The cafe paid for itself in just 14 months. “It was a very good investment,” he reflects.

Today, he’s eyeing his next cafe location. He’s also stayed true to his roots: hiring mostly fellow migrants from Chongqing, many of whom are students he helps support through school. “Old folks like me know how hard it is to make it in a new city,” he says.

Despite his busy Beijing life, He returns to Chongqing two or three times a year. These days, he’s particularly fond of his hometown’s development. “The air is better there. I’d buy a place in Kaixian and retire there if I could.”

Frequently Asked Questions

How did the cafe survive opening across from Starbucks?

The cafe succeeded by focusing on office workers in a high-demand area, offering both coffee and lunch options, adjusting pricing and service after the Starbucks opening, and benefiting from local foot traffic despite direct competition. It paid off its investment in 14 months.

What was the initial challenge the cafe faced?

For the first two months, the cafe couldn’t serve food due to licensing issues, which led to financial losses. Once those were resolved, business picked up quickly.

Why did He Zongcheng decide to open a coffee shop instead of another restaurant?

His children suggested the location was better suited for a coffee shop, as there were no existing cafes in the office-heavy area, while multiple restaurants already existed. They also encouraged him to diversify his business.

Did the arrival of Starbucks hurt the cafe’s business?

No. Instead of declining, the cafe’s sales improved after Starbucks opened nearby. He adjusted service and pricing, and the overall customer base remained strong.

How long did it take for the cafe to become profitable?

The cafe recouped its initial investment in just one year and two months, which He Zongcheng considered a highly successful outcome.

What role do He Zongcheng’s roots play in his business?

He employs many fellow migrants from Chongqing, some of whom are students he sponsors through university. He provides them with part-time work and helps cover living and education expenses.

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