Major Coffee Chains Expand Store Count Rapidly

When Starbucks closed its flagship store in Beijing’s Guomao area earlier this year, many wondered whether high rents were finally pushing out even global coffee giants. But the brand quickly clarified that it wasn’t rent—it was relocation. And behind the scenes, the world’s largest coffee chain is expanding aggressively, especially in the Asia-Pacific region, including China.

In the third quarter, Starbucks reported a 25.4% year-on-year jump in net profit to $417.8 million. Global same-store sales rose 8%, with China and the wider Asia-Pacific region seeing a 9% increase in comparable store revenue.

Starbucks Confirms Steady China Expansion Despite Store Relocation

Following the closure of its original Guomao location, Starbucks issued an official statement clarifying that the outlet had not closed due to financial pressure but had moved from Guomao Phase I to the larger Guomao Phase III location. The company reiterated its long-term commitment to the Chinese market, maintaining its target to operate 1,500 stores in China by 2015—a goal set years prior and still in progress.

Rival Coffee Chains Ramp Up Store Openings Across China

Starbucks is facing intensifying competition as other major coffee chains push to open more locations in China. McDonald’s McCafé brand, for example, had expanded to 516 stores across 24 cities by the end of 2012—and planned to surpass 750 outlets by the end of 2013. Meanwhile, Pacific Coffee, owned by China Resources Enterprise, reported 300 combined company-owned and franchised stores nationwide in the first quarter of 2013, marking a 65% increase compared to the same period the previous year.

What These Numbers Mean for Coffee Retail in China

The rapid expansion of both international and local coffee chains highlights the growing demand for specialty and casual coffee experiences across China. With Starbucks targeting 1,500 stores, McCafé adding hundreds yearly, and Pacific Coffee nearly doubling its footprint in just over a year, the competitive landscape is heating up. This growth isn’t limited to major cities—expansion is widespread across multiple urban centres in the region, reflecting rising consumer interest in café culture and quality coffee.

Frequently Asked Questions

How much did Starbucks’ profit grow in the third quarter?

Starbucks reported a 25.4% increase in net profit for the third quarter, reaching $417.8 million compared to the same period the previous year.

What was the growth rate for Starbucks same-store sales globally?

Global same-store sales for Starbucks grew by 8% year-on-year, with the China and Asia-Pacific region seeing a 9% rise in comparable store revenue.

Did Starbucks close its Guomao store due to high rent?

No. Starbucks clarified that it relocated its Guomao store from Phase I to the larger Phase III location, not because of rent issues but to provide more space for customers.

How many McCafé stores were there in China by the end of 2012?

By the end of 2012, McCafé had 516 stores in 24 Chinese cities, and planned to grow beyond 750 locations by the end of 2013.

How many stores did Pacific Coffee have in early 2013?

Pacific Coffee had 300 stores (both company-owned and franchised) in China by the first quarter of 2013, representing a 65% year-on-year increase.

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