Coffee chains get creative as competition heats up

This winter, Starbucks China is casting a spell on the country's coffee market with a nationwide Harry Potter-themed roll-out, as global coffee chains sharpen branding and expansion strategies to capture consumer traffic.

The coffee chain's winter celebration series features three limited-edition magical winter beverages with themed packaging, as well as a range of exclusive Starbucks merchandise.

Nearly 40 Hogwarts-themed stores across the country will also immerse customers in the world of wizardry. This collaboration has attracted many Harry Potter fans, with the themed merchandise selling out quickly.

Sissi Liang, a Harry Potter fan in Beijing, immediately purchased a Ravenclaw-themed cup as well as a Hogwarts cup, then visited the themed store in Sanlitun Taikoo Li to try the limited-edition magical beverages. She took photos at the Platform 9¾-inspired installation.

"Listening to Hogwarts' theme music in the store while sipping themed coffee made me feel like a witch for a moment," she said jokingly.

Over 1,200 Starbucks stores will offer Hogwarts house-style handicraft workshops, extending the festive winter atmosphere for customers through the Harry Potter collaboration.

Leveraging its "Third Place" concept, Starbucks has transformed its stores into magical settings. For example, the Guangzhou Shamian store in Guangdong province has been fully themed: outside, Hedwig waits with a letter, signaling the start of the winter magic celebration.

Zhu Danpeng, a food and beverage analyst in Guangzhou, said this year, Starbucks has engaged with young people quite frequently through numerous cross-industry collaborations.

"In terms of emotional resonance, this has led to a noticeable increase in its user base," he said. "Leveraging its international brand, Starbucks has excelled in its interactions and synergy with its core consumer groups. This has also served as a crucial driver and tool supporting the healthy and positive development of Starbucks China."

Starbucks is one of a group of coffee chains that has seen rising traffic. On Dec 9, global leading coffee chain Tim Hortons China released its third quarter of 2025 financial report. The report shows that the company's total revenue for the quarter reached 358 million yuan ($50.83 million), with system-wide sales showing strong growth — up 12.8 percent year-on-year to 420 million yuan.

The report indicates that in the third quarter 2025, Tims China continued to refine its operational strategies by upgrading company-operated stores, optimizing its store network and expanding diversified franchise models. These efforts have improved overall operational efficiency and scalability, further solidifying its market leadership and profitability.

During the quarter, Tims China added 15 new stores, bringing its total store count to 1,030 as of Sept 30, a historic high. Cities such as Yanji, Jilin province, Changshu of Jiangsu province, and Wuhu of Anhui province, welcomed their first Tims stores, expanding the brand's footprint to 91 cities nationwide.

Lu Yongchen, CEO and director of Tims China, said: "In Q3, we returned to positive net new store openings and continued our strong momentum in system sales, achieving a 12.8 percent year-on-year growth."

With their successful "Light & Fit Lunch Box" platform products launched in the second quarter, the company further enhanced its differentiated "Coffee + Freshly Prepared Food" strategy, driving a 3.3 percent same-store sales growth for company owned and operated stores, said Lu.

At the same time, their sub-franchise and retail businesses maintained their steady contribution to cash flow and profitability. Profits from other revenues achieved a year-on-year increase of 58.2 percent during the quarter, he said.

"As store expansion continues, Tims China's membership base is also growing, with an increasingly loyal customer base strengthening the company's foundation and providing steady support for foot traffic and per-store profitability. Data show that as of Sept 30, total registered members reached 27.9 million, up 22.3 percent year-on-year, with an average of over 27,100 members per store.

Meanwhile, another leading coffee chain Peet's Coffee has also seen momentum in its business in China. According to its half year results, JDE Peet's, which is the parent company of Peet's, in the Asia-Pacific region, reported that organic sales growth of 8.4 percent was driven by a 7.7 percent increase in prices and 0.7 percent increase in volume and mix, reflecting an increase of overall market softness, most notably in Asia Pacific's out-of-home business.

Sales performance was geographically mixed, with strong performances in countries such as China and Thailand partially offset by softer performances in countries such as Malaysia and New Zealand, according to its financial results.

wangzhuoqiong@chinadaily.com.cn