The Coffee Bean & Tea Leaf targets comeback after dozens of store closures

For decades, one coffee chain built a loyal following with specialty beverages, premium teas, and a strong presence across the U.S. and international markets. At its peak, the company operated more than 1,100 cafés worldwide and was considered one of the largest coffee-focused brands outside the industry giants, such as Starbucks and Dunkin'.

But behind that global footprint, the chain has quietly been shrinking its U.S. presence for years. A combination of store closures, market exits, shifting consumer habits, pandemic-related disruptions, and rising operating costs has reshaped its domestic business.

While the brand continues to expand in parts of Asia, its strategy in the U.S. has shifted significantly from the growth-focused model that once fueled its rise.

The Coffee Bean & Tea Leaf faces store closures as U.S. footprint shrinks

Founded in 1963 in Southern California, The Coffee Bean & Tea Leaf grew into one of the world's largest coffee and tea chains. The company's expansion in Asia began in 1996, ultimately reaching more than 1,100 cafés globally by 2019, the same year it was acquired by Jollibee Food Corporation.

Signs of shrinking U.S. footprint emerged before the pandemic. In 2016, the company closed all of its Manhattan locations, marking one of its most notable market exits and signaling broader challenges in maintaining its domestic presence.

Those challenges accelerated during the COVID-19 pandemic. Between 2020 and 2022, The Coffee Bean & Tea Leaf lost 84 U.S. locations, including 65 company-owned stores, according to FranchiseTimes.

The downsizing has continued since then. As of 2026, the chain operates 192 U.S. locations across 12 states, according to its store locator. Most remaining cafés are concentrated in California, while a growing share of locations operate in non-traditional settings such as airports, healthcare facilities, and university campuses.

The Coffee Bean & Tea Leaf closures

The company's reduced footprint has been visible across several key markets, reflecting a broader effort to streamline its U.S. operations:

• New York: All 12 Manhattan locations closed in 2016, according to The Business Journals.
• California: Multiple locations closed between 2020 and 2025, based on reports from The Desert Sun, Yelp, and Brentwood News LA.
• Nevada: Three Las Vegas locations closed in 2026, reported the Las Vegas Review-Journal.
• Texas: Several Austin-area locations closed from 2016 to 2026, according to Community Impact, MapQuest, and Yelp.

The closures have left the company with a significantly smaller domestic footprint than it maintained during its peak expansion years, while shifting a larger share of operations toward non-traditional formats.

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How The Coffee Bean & Tea Leaf is reshaping its U.S. business

As its traditional café footprint shrinks, The Coffee Bean & Tea Leaf is increasingly focusing on non-traditional locations such as airports, healthcare facilities, and university campuses.

Restaurant operators often favor these formats because they typically require less real estate, lower upfront investment, and reduced operating costs than standalone cafés. The model has become increasingly attractive as brands adapt to changing consumer habits, including greater demand for convenience and off-premise dining options.

Industry analysts say many restaurant chains are reassessing their store portfolios as they navigate shifting consumer spending patterns and rising costs.

"Success will hinge on understanding where consumers are trading down versus splurging, what they want to eat, and how they want to get it - and on translating those insights into targeted actions that build loyalty and redefine the dining experience," said McKinsey & Company analysts.

The Coffee Bean & Tea Leaf expects approximately 80% of its portfolio to eventually operate in non-traditional settings, FranchiseTimes reported.

The shift comes as restaurant operators face mounting economic pressures. Persistent inflation and broader economic uncertainty have made consumers more selective about their discretionary spending, increasing competition for restaurant visits.

Prices for food away from home increased 3.6% during the 12 months ended April 2026, according to recent data from the U.S. Bureau of Labor Statistics.

At the same time, foodservice traffic declined 1% in the quarter ending June 2025, according to Circana, reflecting softer demand across the restaurant industry.

In this context, The Coffee Bean & Tea Leaf's focus on lower-cost operating formats could help the company maintain its U.S. presence while limiting exposure to the higher expenses associated with traditional café locations.

The Coffee Bean & Tea Leaf menu and loyalty initiatives

Alongside its real estate strategy, The Coffee Bean & Tea Leaf has introduced several initiatives to strengthen customer engagement and drive sales growth.

In 2024, the company launched a revamped nationwide loyalty program featuring expanded rewards and member benefits. The chain also expanded its retail business by introducing Nespresso-compatible coffee capsules, creating an additional revenue stream beyond its café operations.

The chain has continued to invest in menu innovation as competition intensifies across the coffee and specialty beverage sector.

Here's some of my previous coverage on restaurant promotions and menu additions:

• Starbucks brings back viral drink after 7 years, adds new item
• Starbucks rival launches breakfast deals under $4
• Fast-growing breakfast chain sees sales jump after menu revamp

Most recently, The Coffee Bean & Tea Leaf introduced a permanent lineup of premium L.A. Espresso beverages through its new "Perfect Americano" menu. According to a company announcement, drinks start at $4, with customers able to upgrade sizes for an additional $0.50 and add oat or almond milk at no extra charge.

The lineup includes:

• Classic Americano ($4): Espresso and water, served hot or iced.
• Flavored Americano ($5): Espresso and water blended with the brand's signature flavored powder and a flavor of choice.
• Dry Iced Americano ($6): Espresso served over ice with French Deluxe Vanilla Powder, caramel drizzle, and half-and-half.

The company has also leaned into promotional offers as consumers become more value-conscious.

• National Ice Blended Drink Day (June 11): Any regular ice blended drink for $4 starting from noon to 6 p.m.
• Summer Fridays (June 19 through August 14): Any two beverages, any size, for $10 from noon to 6 p.m. every Friday.
• National Best Friend's Day (June 6-8): Loyalty Members can redeem a BOGO offer on any drink, any size, from noon to 6 p.m.
• Father's Day BOGO (June 21): BOGO for any beverage, any size, available all day.

The promotions reflect a broader industry trend, as restaurants and beverage chains increasingly rely on loyalty programs, bundled offers, and limited-time discounts to attract customers facing higher living costs.

The Coffee Bean & Tea Leaf's financial performance

Despite its shrinking U.S. footprint, The Coffee Bean & Tea Leaf continues to grow systemwide.

According to Jollibee Food Corporation's latest earnings report, the chain recorded 10.7% year-over-year systemwide sales growth in the first quarter of fiscal 2026.

Jollibee Food Corporation does not disclose standalone financial results for The Coffee Bean & Tea Leaf. However, the parent company reported that new store openings within its coffee and tea segment outside Asia declined 70% compared with the prior year.

"We are taking disciplined steps to manage near-term volatility through measured price increases beginning in Q2, alongside thoughtful and targeted cost management, while continuing to advance sustainable growth and long-term shareholder value," said Jollibee Food Corporation CEO Ernesto Tanmantiong in a statement.

While the brand continues to face challenges in the U.S. market, its international operations remain a key source of growth.

The Coffee Bean & Tea Leaf expanded its global store network by 5.8% during the year, with most new locations opening across Asia. The chain was also included in the 2024 Asia's Top 80 Restaurants and Hotels ranking, according to Jollibee Food Corporation's 2024 Annual Report.

The contrast between the company's domestic contraction and international expansion highlights the increasingly regional nature of its growth strategy. While The Coffee Bean & Tea Leaf continues to reduce and reposition its U.S. footprint, the brand remains focused on expanding in markets where demand and development opportunities remain strong.

Related: Beloved ice cream chain closing location after 40 years

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This story was originally published June 6, 2026 at 8:03 AM.