A prominent coffee chain that drastically reduced its number of locations over the years is now gearing up for a comeback to compete with rivals like Starbucks.
The Coffee Bean & Tea Leaf, which once 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 this downsizing, the company is now moving forward with plans to grow its brand by opening new outlets, enhancing its menu offerings, and introducing customer loyalty programs.
Founded in Southern California in 1963, The Coffee Bean & Tea Leaf grew to become one of the largest coffee and tea chains globally, with stores in the US, Asia, and the Middle East.
However, in recent years, the company has been scaling back its operations in the US, with all 12 New York locations closing in 2016 and more closures during and after the pandemic.
Currently, the chain operates 192 stores across 12 states in the US, with the majority in California.
Despite reducing its traditional brick-and-mortar presence, the company is focusing on expanding through non-traditional venues such as airports, hospitals, and university campuses. It has also revamped its loyalty program and expanded its product offerings, including coffee capsules compatible with Nespresso machines.
Recently, The Coffee Bean & Tea Leaf launched a new lineup of premium espresso drinks as part of its “Perfect Americano” menu and introduced promotional deals targeting budget-conscious customers.
This push for recovery comes amid heightened competition in the coffee industry as chains vie for customers in a changing market landscape.
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.
Internationally, the brand is expanding, with most new locations opening in Asia.
The shift in strategy for the chain is evident: fewer traditional cafes but a renewed focus on growth through new formats, products, and key market expansion.
After facing closures and retreating from certain markets, The Coffee Bean & Tea Leaf is betting on its transformation to position itself as a strong contender against leading coffee chains like Starbucks.
