Pacific Coffee Expanded to 474 Stores in China in 2015

In January 2016, news broke that Pacific Coffee—already known for pushing boundaries in China’s competitive coffee scene—launched a new ‘Happy Afternoon Tea’ promotion with delivery service in Beijing and Shanghai, including a 30 RMB discount on orders over 60 RMB via Baidu Takeaway. But the bigger story wasn’t just the promo: it was how the brand kept growing despite a crowded and experimental market. With tactics ranging from corporate coffee service to franchising, the real question was whether all these moves could keep Pacific Coffee rising—or if it would stumble like others before it.

Yes, Pacific Coffee opened 75 new stores in 2015, bringing its total to 474 locations across China. That 15% year-on-year growth and 12% same-store sales increase put it ahead of Costa (344 stores), though still far behind Starbucks’ 1,700 locations in mainland China.

Pacific Coffee’s 2015 Growth: 75 New Stores, 474 Total

According to official data confirmed by Pacific Coffee, as of mid-January 2016, the brand operated 474 stores in China—a net increase of 75 outlets in 2015 alone. This translated to a 15% growth in total store count and a solid 12% rise in same-store sales. While Costa China had 344 stores (per Whitbread’s May 2015 earnings), Pacific Coffee had clearly overtaken its UK rival. However, it remained distant from Starbucks, which by then had 1,700 stores across 90 cities in mainland China.

Delivery, Deals, and Daring: Pacific’s Marketing Playbook

Beyond bricks-and-mortar growth, Pacific Coffee actively tested new service models. In early 2016, it launched an afternoon tea promotion with discounted delivery in Beijing and Shanghai, available first on Baidu Takeaway—with a 30 RMB off coupon for purchases over 60 RMB. This was just one example of the brand’s history of trying unconventional approaches, from early experiments in coffee delivery to collaborations with banks and hospitals. These moves reflected a strategy of staying visibly innovative in a rapidly evolving market.

The ‘Three Horsepower’ Business Model: Retail, Corporate, and Franchise

Pacific Coffee’s CEO, Lan Yi, outlined the company’s strategy as being powered by three key segments: retail (company-owned stores), corporate coffee services (B2B solutions), and franchising. Lan emphasized that all three were equally critical to growth. Of these, franchising—while common in foodservice for rapid scaling—carried risks, as seen when other coffee chains suffered from poorly managed franchises. Yet Pacific Coffee claimed a controlled approach: only 8.86% of its 474 stores (42 outlets) were franchised, all under a city-level rather than single-store model. This, the company stated, helped maintain brand consistency through centralized oversight.

Coffee Solutions: A Platform for Custom Coffee Businesses

Another unique arm of Pacific Coffee’s strategy was Coffee Solutions, a B2B-focused service aiming to help businesses or individuals set up their own coffee operations. The platform offered tools, training, equipment, and consulting, and extended into three channels: Coffee Solutions for Shops (like custom coffee corners in supermarkets), Coffee Solutions for Office (supplying break rooms with consumables), and Coffee Solutions for Home (supporting personal kitchen coffee setups). Though framed as potentially scalable, industry observers noted the B2B coffee space was limited, with many corporations and retailers already operating their own in-house coffee services.

Frequently Asked Questions

How many new stores did Pacific Coffee open in 2015?

Pacific Coffee opened 75 new stores in 2015, bringing its total store count to 474 locations across China by early 2016.

Did Pacific Coffee surpass Costa in store numbers in 2015?

Yes, with 474 stores, Pacific Coffee surpassed Costa China, which had 344 stores as reported by its parent company Whitbread in May 2015.

How did Pacific Coffee’s growth compare to Starbucks in 2015?

Although Pacific Coffee grew to 474 stores, it remained far behind Starbucks, which had 1,700 locations across 90 cities in mainland China by the same period.

What percentage of Pacific Coffee stores were franchised in 2016?

As of early 2016, 42 of Pacific Coffee’s 474 stores were franchised, making up approximately 8.86% of its total footprint.

What is Pacific Coffee’s Coffee Solutions business?

Coffee Solutions is a B2B platform where Pacific Coffee helps businesses or individuals establish coffee services using the brand’s resources, covering shop setups, office break rooms, and even home coffee stations.

What marketing promotions did Pacific Coffee launch in early 2016?

In early 2016, Pacific Coffee started a ‘Happy Afternoon Tea’ promotion offering a 30 RMB discount on orders over 60 RMB for delivery in Beijing and Shanghai, initially available via Baidu Takeaway.