Your weekly round-up of the five biggest stories from across the global coffee industry...
- South Korea’s Mega Coffee seeking to make the grade in the US
- Tata Starbucks posts one of its “strongest quarters ever”
- Gong cha enters second Middle East market
- Couche-Tard continues M&A drive with reported Cumberland Farms bid
- Tim Hortons reports 22nd consecutive quarter of positive like-for-like sales growth
1. Large cups, low cost. Mega Coffee makes its play for the US market
Founded in 2015, Mega Coffee is now the largest operator in South Korea’s branded coffee shop market by outlets, with 4,500 stores.
Best known for its affordable large cup sizes and extensive cold coffee menu, Mega is planning to open its first US store in New York before the end of the year.
How Mega’s pricing strategy, which centres on americanos below ₩3,000 ($2.26) in its home market, translates in the upmarket Flatiron District of Manhattan remains to be seen.
However, its upcoming US debut highlights a notable pattern – South Korean coffee chains are increasingly keen to make their mark in the US.
2. Tata Starbucks returns to outlet growth in one of its “strongest quarters ever”
Tata Starbucks – a 50:50 joint venture between Mumbai-based Tata Consumer Products and Seattle-based Starbucks – posted a double-digit revenue increase and a fifth consecutive quarter of positive like-for-like sales growth in its second quarter.
Having also reversed two consecutive quarters of net outlet decline, Tata Consumer Products CEO Sunil D’Souza labelled the period as one of Tata Starbucks’ “strongest quarters ever”.
Second quarter outlet growth included two new Reserve stores in New Delhi and Hyderabad, as the premium coffee chain leans further into its higher-end offerings.
3. Gong cha makes long-awaited UAE debut
In January 2024, Gong cha signed the ‘largest master franchise agreement in its history’ to open at least 300 stores across the Middle East in partnership with Dunkin’ licensee Shahia Foods Group.
More than two years after launching in Riyadh, the bubble tea chain has now made its long-awaited debut in the UAE – its second Middle East market.
Gong cha, and new owner Bain Capital, will be hoping the move can add fresh impetus to its growth plans in the region, which currently comprises a dozen stores in Saudi Arabia.
4. Cumberland Farms could be the next piece in Couche-Tard’s global convenience puzzle
Circle K parent company Alimentation Couche-Tard has reportedly bid up to $8bn for US convenience store chain Cumberland Farms, formerly known as EG Group.
The move, which would add 3,300 US and European petrol stations and convenience stores to its estate, follows a $8.7bn July 2026 deal to acquire Poland’s Żabka Group, which saw Couche-Tard take over 13,000 convenience stores in the European country.
With a potential $38bn war chest still lying in wait following a failed $47bn bid for 7-Eleven last year, the Canadian convenience store giant has the capital to kickstart an acquisition spree.
5. Matcha and Meltz lift afternoon sales in key quarter for Tim Hortons
Canadian coffee giant Tim Hortons has rebounded from a disappointing second quarter with improved earnings for the three months ended 30 September 2026 – with iced beverages and afternoon food sales coming to the fore.
Tim Hortons’ cold beverage sales grew 5% year-on-year during the third quarter, led by the chain’s first matcha range, which launched in July 2026.
However, while cold beverages have become a hot selling point for Tim Hortons, outlet growth remains lukewarm.
