A well-known coffee chain that had significantly reduced its number of locations over the years is now planning a comeback to compete with rivals like Starbucks.
The Coffee Bean & Tea Leaf, which previously operated more than 1,100 cafes worldwide, has been downsizing its presence in the United States due to changing consumer preferences, rising costs, and the impact of the Covid pandemic.
Despite the downsizing, 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.
Originating in Southern California in 1963, The Coffee Bean & Tea Leaf grew to become one of the largest coffee and tea chains globally, with establishments across the US, Asia, and the Middle East.
However, the company has been gradually reducing its operations in the US in recent years. The chain exited Manhattan in 2016 when all 12 of its New York locations closed, and more stores shut down during and after the pandemic.
Currently, the company operates 192 outlets in 12 states, with most of its surviving cafes located in California.
While its traditional storefront presence has decreased, The Coffee Bean & Tea Leaf is focusing on expanding in non-traditional settings like airports, hospitals, and university campuses. The company has revamped its loyalty program, expanded its retail offerings, and introduced coffee capsules compatible with Nespresso machines.
Recently, it unveiled a new lineup of premium espresso drinks as part of its “Perfect Americano” menu and introduced promotional deals to attract budget-conscious customers.
This expansion effort comes amid growing competition in the coffee industry, with chains vying for customers amidst rising living costs and changing consumer tastes.
Despite challenges in the US market, 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 locations 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 expansion.
After years of closures and retrenchment, The Coffee Bean & Tea Leaf is now banking on its transformation to once again compete with industry giants like Starbucks.