Introduction:When the time-honored Tianjin Goubuli Group ventured into the coffee industry, its seven-year journey was filled with twists and turns—from acquiring the franchise rights for Australia’s Gloria Jean's in China to establishing its own coffee company. This article details how Goubuli laid out its coffee market strategy starting in 2014, up to the founding of a dedicated subsidiary in 2022, analyzing its store expansion progress, current market competition, and future challenges, to help you understand the realities and possibilities of this cross-industry move.
In recent years, China’s coffee market has expanded rapidly, attracting many traditional brands to cross over, and Tianjin’s renowned Goubuli steamed buns are one of them. Since obtaining the exclusive permanent operating rights for Australia’s Gloria Jean's Coffees in China in 2014, the Goubuli Group embarked on its exploration of the coffee track. Seven years later, this time-honored brand famous for its traditional Chinese buns has now established a dedicated coffee food company, but its development pace has not lived up to initial expectations.
Going back to 2012, the Goubuli Group began contacting Australia’s Gloria Jean's Coffee International. After two years of negotiations, they finally signed an official agreement on December 25, 2014. According to the contract, Tianjin Senyongtai Catering Co., Ltd., a wholly-owned subsidiary of Goubuli, obtained the sole and permanent right to use the Gloria Jean's brand in the Chinese market, paying 6 million Australian dollars as the initial franchise fee. This investment marked Goubuli’s formal entry into the coffee industry.
In early 2015, the brand already had 12 Gloria Jean's coffee stores operating in the Chinese market. At the time, Zhang Yansen, chairman of the Goubuli Group, stated publicly that the plan was to expand the number of stores to 20 in 2015, and set a goal of reaching 200 stores within five years. He emphasized that developing the coffee business was an important strategy for corporate diversification, hoping that revenue from the coffee segment would support the continued development of the century-old Goubuli brand.
However, as of today, seven years later, Gloria Jean's expansion in China has fallen far short of initial expectations. As of February 2022, according to official website data, Gloria Jean's had only 28 stores left on the Chinese mainland, far from the target of 200. Notably, 16 of these 28 stores are located in Tianjin, the brand’s place of origin, showing a highly concentrated market layout that failed to effectively expand to other regions across the country.
On February 22, 2022, the Goubuli Group further established “Gloria Jean's Coffee Food (Tianjin) Co., Ltd.”, with a registered capital of 500,000 RMB, 100% owned by Tianjin Goubuli Food Co., Ltd., and Zhang Yansen as the legal representative. The company’s business scope includes food sales, daily necessities, and catering management, indicating that the Goubuli Group is attempting to deepen its presence in the coffee market through a more specialized legal entity.
However, as competition in China’s coffee market intensifies, it is not easy for Goubuli to stand out in this field. Starbucks faced a brand trust crisis due to the “police eviction” incident, while “national team” brands such as China Post have also joined the fray by launching “Post Coffee”, quickly attracting market attention. Meanwhile, cross-industry players such as pharmacies, hospitals, and bubble tea shops have also launched freshly ground or ready-to-drink coffee products, continuously dividing up market share.
Compared to China Post’s advantage of having a nationwide network, Goubuli’s brand image in the minds of consumers is still mainly that of a local specialty, with obvious gaps in both store coverage and brand recognition. In addition, although China’s coffee market continues to grow, the number of participants is large, and how to create a differentiated positioning in fierce competition has become a key issue for the future development of Goubuli Coffee.
In summary, from the Goubuli Group’s foray into the coffee industry in 2014 to the establishment of a dedicated company in 2022, the seven-year development journey has been full of challenges and adjustments. Although the current number of Gloria Jean's stores in China still falls far short of the original target of 200, this cross-industry layout has still provided the brand with an opportunity for diversification. Whether it can successfully expand the market and enhance brand influence in the future still depends on its subsequent strategies and execution effectiveness.
The above content is compiled by CoffeeHunters, a coffee news website.
