A prominent coffee chain that had downsized significantly over the years is now planning a comeback to compete with rivals like Starbucks. The Coffee Bean & Tea Leaf, which once had over 1,100 cafes worldwide, has been reducing its presence in the US due to changing consumer preferences, rising costs, and the impact of the Covid-19 pandemic.
Despite the downsizing, the company is now focused on expanding its brand by opening new outlets, introducing new menu items, and enhancing customer loyalty programs. Established in Southern California in 1963, The Coffee Bean & Tea Leaf grew to become one of the largest coffee and tea chains globally, with locations in the US, Asia, and the Middle East.
While the company has scaled back its operations in the US in recent years, it is looking to grow its footprint by adopting a different strategy for expansion. The plan includes opening about 80% of future stores in non-traditional settings such as airports, hospitals, and university campuses. Additionally, the company has revamped its loyalty program, expanded its product range to include coffee capsules compatible with Nespresso machines, and launched a new line of premium espresso drinks.
Amidst increasing competition in the coffee industry, The Coffee Bean & Tea Leaf’s parent company, Jollibee Food Corporation, reported a 10.7% year-on-year growth in systemwide sales for the brand in the first quarter of 2026. The brand is also expanding internationally, with a focus on opening new stores in Asia.
The company’s shift in approach signifies a move away from traditional cafes towards a fresh expansion strategy through innovative formats, new products, and growth in key markets. After facing closures and market exits, The Coffee Bean & Tea Leaf is now betting on its transformation to regain ground and challenge major players like Starbucks in the coffee market.
