A prominent coffee chain, which had downsized significantly over the years due to various reasons, is now gearing up for a comeback to compete with rivals like Starbucks.
The Coffee Bean & Tea Leaf, which used to operate over 1,100 cafes globally, has been scaling down its presence in the United States due to changing consumer preferences, rising costs, and the impact of the Covid pandemic.
Despite the reductions, the company is now moving forward with plans to grow the brand by opening new stores, introducing new menu items, and enhancing customer loyalty programs.
Founded in Southern California in 1963, The Coffee Bean & Tea Leaf grew into one of the largest coffee and tea chains globally, with locations in the US, Asia, and the Middle East.
However, in recent years, the company has been downsizing its operations in the US, with all its 12 New York branches closing in 2016 and more closures during and after the pandemic.
Currently, the chain operates 192 stores across 12 states in the US, primarily concentrated in California.
While its traditional presence on main streets has shrunk, the company is now focusing on expanding in non-traditional settings like airports, hospitals, and university campuses. It has also revamped its loyalty program and expanded its retail offerings, including coffee capsules compatible with Nespresso machines.
Recently, The Coffee Bean & Tea Leaf introduced a new line of premium espresso beverages under the “Perfect Americano” menu and launched promotional deals to attract budget-conscious customers.
This resurgence comes amid heightened competition in the coffee industry as chains vie for customers amidst rising living costs and changing consumer preferences.
Despite challenges in the US market, the parent company, Jollibee Food Corporation, reported a 10.7% year-on-year increase in systemwide sales for The Coffee Bean & Tea Leaf in the first quarter of 2026.
The brand is also expanding internationally, with most new stores opening in Asia.
This shift in strategy highlights the chain’s move towards fewer traditional cafes and a focus on growth through new formats, products, and key market expansions.
After years of closures and retrenchments, The Coffee Bean & Tea Leaf is now banking on its transformation to once again compete with coffee giants like Starbucks.