Introduction:On the scenic Solitary Hill by West Lake, the former COSTA Xiling store has quietly replaced its signage with that of Starbucks. The Chinese-style interior has drawn the attention of visitors. This change not only surprises netizens as the “Starbucks replacing COSTA” scenario becomes reality, but also reflects the rising rents in the West Lake commercial district and the competitive landscape among coffee brands. This article takes you through the history of this outlet, the reasons behind the brand transition, and data analysis on COSTA’s store closures in China in recent years.

Walking along Solitary Hill Road by West Lake, a newly opened Starbucks branch blending Chinese design elements has recently made its debut. The sign reading “Starbucks Coffee” now hangs where the COSTA logo once stood. This location was previously home to the COSTA Xiling store, which withdrew from the market in August this year. Starbucks quickly took over the space, redesigning the shop with a Chinese aesthetic that has attracted both tourists and locals for photo opportunities.

For first-time visitors, the unique interior design of this Starbucks may seem refreshingly novel, but for local residents, Starbucks’ presence around West Lake is nothing new. In earlier years, Starbucks densely populated the areas surrounding the lake, offering standardized coffee and rest spaces for travelers. Among them, the Shengtang store near Shihan Jingshe was particularly celebrated for its distinctive décor and was hailed as the “most beautiful Starbucks by West Lake.” Unfortunately, it ceased operations in early 2023 due to factors such as rising rent.

Now, Starbucks has returned to the shores of West Lake, incorporating more local design elements into the store’s appearance to offer customers a fresh visual experience. However, this prime spot was originally occupied by the COSTA Xiling store, where the bench outside the entrance used to be a popular photo spot for visitors, often praised on social media. Regrettably, due to the expiration of the lease, COSTA ceased operations in August this year, leaving many regular customers feeling nostalgic and flocking to take final photos.

Surprisingly, the location was quickly taken over by Starbucks after COSTA’s departure, sparking heated discussions online. Some netizens joked, “We always used to say when will Starbucks replace COSTA? Now it’s finally happened.” But in reality, COSTA’s business performance in recent years has not been promising. According to data from Zhaomen Canyan, as of October 7, the number of remaining Starbucks outlets in China stands at393, with the number of closures far exceeding new openings.

Take September as an example: COSTA only opened one new store each in Xianyang and Hong Kong, while simultaneously shutting down10 storesin cities including Beijing, Guangzhou, and Shanghai. This trend raises concerns about the brand’s future development. While local netizens welcome Starbucks’ return—allowing visitors to enjoy coffee and lake views in a classic Chinese-style setting—they also lament the continued decline in the number of COSTA outlets.

Many have expressed a sense of nostalgia, noting how what was once a joke has now become reality: a beloved brand being replaced by another. Observers also speculate that Starbucks may continue to take over locations vacated by COSTA, gradually replacing the red-and-white signs with its own iconic green siren logo.

The above content is compiled by CoffeeHunters, a coffee news website.