The Coffee Bean & Tea Leaf Eyes Comeback by Shifting 80% of U.S. Stores to Non‑traditional Venues

Why It Matters

The Coffee Bean & Tea Leaf’s pivot underscores a critical inflection point for mid‑tier specialty coffee brands confronting rising labor costs, inflation and shifting consumer habits. By moving into non‑traditional locations, the chain aims to preserve margins while staying relevant to on‑the‑go customers, a strategy that could become a template for other legacy brands facing similar headwinds. Moreover, the shift may alter the competitive dynamics in airport and campus retail, challenging incumbents and potentially reshaping the coffee‑shop experience for millions of travelers and students. If successful, the comeback could revitalize the brand’s U.S. relevance and provide Jollibee with a stronger foothold in the American market, where coffee consumption continues to grow. Conversely, a failure to maintain brand quality in these high‑traffic venues could erode consumer loyalty and accelerate the decline of another once‑dominant coffee chain.

Key Takeaways

• The Coffee Bean & Tea Leaf operates 192 U.S. locations across 12 states as of 2026, down from over 1,100 worldwide at its 2019 peak.
• 84 stores were closed between 2020‑2022, including 65 company‑owned cafés.
• The company aims for roughly 80% of its U.S. portfolio to be in non‑traditional venues such as airports, hospitals and university campuses.
• McKinsey analysts warn success depends on understanding consumer trade‑offs and delivering targeted loyalty actions.
• The strategic shift mirrors a broader industry move toward lower‑cost, high‑traffic locations to offset inflation and labor pressures.

Pulse Analysis

The Coffee Bean & Tea Leaf’s strategic realignment is less a revival than a re‑engineering of its business model. Historically, the chain grew by saturating suburban strip malls and stand‑alone storefronts, a playbook that faltered as millennials and Gen Z gravitated toward experiential coffee and on‑the‑go convenience. By embracing airports, campuses and healthcare hubs, the brand is essentially trading square footage for foot traffic, a move that can improve same‑store sales per square foot but risks diluting the community‑centric vibe that differentiated it from Starbucks.

Financially, the shift could improve unit economics. Non‑traditional sites typically involve revenue‑share leases, reducing fixed rent obligations and aligning landlord incentives with store performance. This structure also cushions the chain against the volatility of retail real‑estate markets, which have been destabilized by e‑commerce and post‑pandemic office space reductions. However, the upside hinges on the chain’s ability to negotiate favorable terms and maintain product consistency in high‑throughput environments where speed often trumps ambiance.

From a competitive standpoint, the move may intensify battles for concession contracts in airports and campuses, arenas where Starbucks, Dunkin’ and emerging boutique roasters already vie for limited slots. The Coffee Bean & Tea Leaf’s legacy brand equity could give it an edge, but only if it can deliver a differentiated menu and efficient service. In the longer term, the success of this pivot will be a bellwether for other mid‑tier coffee chains contemplating similar exits from traditional retail spaces. If the model proves profitable, we could see a wave of legacy brands re‑positioning themselves as convenience‑first operators, reshaping the specialty‑coffee landscape for the next decade.