The Week in Coffee, 5-11 October 2026

Your weekly round-up of the five biggest stories from across the global coffee industry...

• Could a Starbucks-Chipotle tie-up be on the cards? 
• New York-based Blank Street posts soaring profits 
• Gong cha makes a decade-long commitment to the Philippines 
• Coca-Cola revisits Costa Coffee sale, source says
• Subway rolls out new coffee offer in challenge to Greggs and McCafé

1. Starbucks and Chipotle shares rise on tie-up speculation 

Shares in Starbucks and Chipotle were given a jolt last week amid whispers that the US chains could be exploring a merger. 

However, what started the week as rumour soon snowballed into widespread speculation. 

Starbucks CEO Brian Niccol has better knowledge than most of the inner workings of Mexican-inspired QSR chain Chipotle, having served as their CEO for the six years ended September 2024.

While there is no concrete evidence to suggest a merger or acquisition will happen, such a move is also not beyond the realm of possibility – and there are many reasons why a tie-up makes sense.

2. Believe the hype: Blank Street triples UK profits 

When Blank Street launched in the UK in June 2022, it outlined a goal to make London its ‘second-biggest city’. 

Just over four years and a $650m valuation later, the popular lifestyle brand has exceeded its own expectations, new UK filings show. 

But can Blank Street’s US stores keep up?

3. Gong cha signs 10-year franchise deal in the Philippines 

Taiwanese bubble tea chain Gong cha has extended its master franchise agreement in the Philippines to open 50 new stores over the next 10 years. 

The bubble tea chain has highlighted the Philippines as central to its Southeast Asia growth strategy, suggesting that the region could play an even more important role in its bid to reach 10,000 stores globally by 2032. 

4. Costa Coffee: Back to profitability, back on the market? 

Less than a week after it announced a return to profitability and £1.3bn ($1.7bn) in annual revenues, Costa Coffee once again finds itself subject to sale speculation. 

US beverages giant Coca-Cola, which acquired Costa for $5.1bn in January 2019, first began exploring a sale of the UK coffee chain last Summer, but pulled the plug on the process after bids fell below its valuation. 

Could it now return to the market as a more attractive proposition? 

5. Subway to take on UK coffee chains with major investment in stores 

Subway has laid down a challenge to the UK’s value-focused coffee and food-to-go giants with a major menu investment. 

Serving a new Rainforest Alliance-certified, 100% arabica coffee across its 2,000-store UK estate will pit Subway against leading affordable coffee and food-to-go chains Greggs and McCafé.