A battle is brewing in the Golden State, and it is not over tech or real estate. It is over coffee. And the challenger is coming from 6,000 miles away.
Cotti Coffee, the Chinese coffee giant founded by former Luckin executives, is plotting a full-scale invasion of California. Already busy opening locations in Southern California, the company now has its sights set on the Bay Area and Northern California, precisely as longtime king Starbucks closes dozens of stores across the state.
The coffee wars have officially gone global.
The Invasion Plan
Cotti already has several coffee houses throughout Los Angeles County, including in San Gabriel, Rowland Heights, and Irvine. But that is just the opening salvo. According to signage on buildings reported by the Santa Monica Mirror, the company is expected to open more shops soon along Santa Monica’s Third Street Promenade and at a location on Lincoln Boulevard.
The brand is known for more than just its caffeine. Cotti offers innovative drinks like the Orange Grapefruit Americano, along with fun coffee-themed merchandise and tasty treats, according to the company’s website. It is coffee as a lifestyle brand — a page borrowed directly from the Starbucks playbook.
The company will also soon be opening two new locations in San Francisco: one at 99 Drum Street and another at 100 Bush Street, the San Francisco Business Times reported. The message is unmistakable. Cotti is not dabbling in California. It is planting flags.
Starbucks Retreats
News of Cotti gaining ground comes as Starbucks, the Seattle-based coffee giant, is pulling back. Last year, the company announced closures of coffee shops in major cities across the state, including San Francisco, San Ramon, Los Angeles, and more. In total, several dozen locations were shuttered, including more than 20 in Los Angeles County alone, per FOX 11.
In April, another Starbucks closed its doors in San Jose, a location that was not even on the original list from last fall. Starbucks offered its standard explanation: “As part of Starbucks standard course of business, we continually evaluate our business to ensure a healthy store portfolio. After careful consideration, we’ve determined it is best to close the store.”
But the pattern is clear. Starbucks is shrinking in California. Cotti is expanding.
The Luckin Connection
Cotti Coffee was founded in 2022 by executives from Luckin Coffee, following a massive fraud scandal that rocked the Chinese coffee industry. Luckin had been seen as a rising competitor to Starbucks in China before admitting to fabricated sales and facing a delisting from Nasdaq.
Now, the same executives are trying again — this time, on American soil. Cotti made its US debut in early 2024 in Hawaii before expanding to California and New York. The California push is its most aggressive move yet.
The company’s creations include a Brown Sugar Oolong Oat Latte and Americanos infused with different fruit syrups such as lemon and grapefruit. This is not your grandfather’s coffee. It is designed to appeal to younger, trend-conscious drinkers who see Starbucks as stale.
What This Means
Starbucks is not dead. Far from it. But the company is clearly struggling in certain markets, and California has become a battleground. High rents, shifting consumer habits, and increased competition have forced the chain to consolidate.
Cotti sees an opening. The Chinese chain is betting that Californians are ready for something new — something with Asian-inspired flavors, aggressive pricing, and a fresh brand identity. Whether that bet pays off depends on whether Cotti can replicate its Chinese success in a very different market.
One thing is certain: the coffee wars are no longer just about who makes the best latte. They are about global expansion, market share, and which brand can survive the shakeout.
The Bottom Line
Cotti Coffee, the Chinese coffee giant founded by former Luckin executives, is plotting a major expansion in California. The company already has locations in Los Angeles County and is set to open new shops in Santa Monica and San Francisco. The move comes as Starbucks closes dozens of stores across the state, including more than 20 in LA County alone.
Cotti offers innovative drinks, themed merchandise, and a fresh alternative to the traditional coffeehouse experience. The company made its US debut in Hawaii in early 2024 and has since expanded to California and New York. Starbucks has not commented on Cotti’s expansion but has confirmed that its own closures are part of standard business evaluations.
