The announcement that Costa Coffee will close 10% of its stores in China comes following disappointing financial results for the coffee business globally in Q2.
Although China was Costa’s biggest potential East Asian market, the company was unable to bounce back from the effects of COVID-19. The company has closed all its stores in the coastal city of Qingdao, as well as some in Beijing, Jiangsu and Zhejiang.
Costa said that it would continue to invest and develop in China in the future as they are seeking to:
Costa Coffee is owned by Coca-Cola and entered the Chinese market in 2006 with its first store in Shanghai. It currently has around 400 stores in China, and had originally planned to open as many as 2,500. Costa released ready-to-drink coffee products in China in May this year.