Your weekly round-up of the five biggest stories from across the global coffee industry...
- Are cracks appearing in Luckin Coffee’s growth strategy?
- Acquisition creates one of Germany’s largest bakery-café groups
- McDonald’s brings the competition to US coffee chains
- 2,200-store bubble tea chain Gong cha acquired by Gail’s owner
- Tim Hortons’ recovery hits a speed bump
1. Luckin Coffee has opened more than 5,200 new stores in China this year
On the face of it, Luckin Coffee’s second-quarter results were more of what we’ve come to expect from China’s largest coffee chain – more than 5,200 new stores since the start of the year, rising revenues and robust operating income.
Nevertheless, declining like-for-like sales in China indicate that all is not well in Luckin Coffee’s sprawling estate.
2. Latest FSN Capital acquisition creates one of Germany’s largest bakery-café groups
Norwegian Private equity firm FSN Capital has made its third investment in the German bakery-café market as consolidation in the segment intensifies amid heightened competition and cost pressures.
The deal completed on 31 July 2026, with FSN announcing the merger of its three family-run bakery-café chains into one operating unit – the BrotWert Group.
With a collective footprint of over 500 outlets, primarily across Northern Bavaria and the Rhine-Main and Rhine-Neckar regions, the new entity is one of the largest regional bakery groups in Germany, according to FSN.
3. McDonald’s is recasting itself as a beverage destination in the US
In May 2026, McDonald’s unveiled a brand refresh for McCafé across the US in a bid to woo younger consumers, boost afternoon footfall and better compete with the country’s largest branded coffee chains.
The Chicago-based fast-food giant has also rolled out a range of customisable refreshers, crafted sodas and energy drinks to position it as a go-to beverage destination for Gen Z consumers.
By recasting itself as a standalone beverage destination, McDonald’s is ramping up direct competition with the largest branded coffee chains in the US.
Early results indicate it’s an approach that’s working.
4. Bain Capital acquires Gong cha’s 2,200-store global business
Taiwanese bubble tea chain Gong cha has confirmed that it has been sold to US private equity firm Bain Capital for an undisclosed sum.
Reports say the deal was secured at a significant discount to TA Associates’ $2bn asking price.
London-headquartered Gong cha is one of the world’s largest bubble tea chains, serving more than 150 million beverages annually across more than 2,200 outlets globally.
The operator has now outlined its plans for global growth.
5. Has Tim Hortons’ recovery in Canada stalled?
Ontario-based Tim Hortons began 2026 on the front foot with a return to outlet growth following four successive years of net closures and 5.1% annual revenue growth to $4.2bn.
Disappointing second quarter earnings suggest that the recovery has hit its first major speed bump. But Tim Hortons still has several initiatives in the pipeline that could turn the tide back in its favour before the end of 2026.
