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, previously operating more than 1,100 cafes worldwide, has been reducing its presence in the United States due to changing consumer preferences, rising costs, and the impact of the Covid-19 pandemic.
Despite the downsizing, the company is moving forward with plans to grow the brand by opening new outlets, introducing new menu items, and enhancing customer loyalty programs.
Established in 1963 in Southern California, 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 scaling back its operations in the US, particularly in Manhattan where it closed all 12 branches in 2016, the company now operates 192 outlets across 12 states, mostly in California.
Looking ahead, The Coffee Bean & Tea Leaf aims to have about 80% of its future locations in non-traditional settings such as airports, hospitals, and university campuses. The company has revamped its loyalty program, expanded its product line to include coffee capsules compatible with Nespresso machines, and introduced a new range of premium espresso beverages.
In a move to remain competitive in the coffee industry amid rising costs and changing consumer preferences, the brand has reported a 10.7% year-on-year increase in systemwide sales during the first quarter of 2026, as per Jollibee Food Corporation, its parent company.
While facing challenges in the US market, The Coffee Bean & Tea Leaf is experiencing growth internationally, with a focus on expanding in Asia.
The brand’s strategy shift involves fewer traditional cafes but a renewed focus on growth through new formats, products, and key market expansions. After years of closures and market exits, The Coffee Bean & Tea Leaf is aiming to regain competitiveness against coffee giants like Starbucks.
