Chinese Tea Giant Chagee Tops 7,000 Stores on Aggressive Global Push

Chaji Holdings, the parent of modern tea chain Chagee, has surpassed 7,000 stores globally, fueled by an accelerated international expansion that is quickly establishing its presence from Southeast Asia to the United States.

The company’s latest financial results for the second quarter of 2025 underscore the momentum behind its overseas strategy. While total Gross Merchandise Volume (GMV) grew a steady 15.5% year-over-year to RMB 8.103 billion yuan (US$1.13 billion), its overseas business surged 77.4%, becoming a critical engine for growth. Chagee now operates 208 stores outside of mainland China.

This rapid expansion follows the company's initial public offering in April of 2025 and includes recent market entries into the Philippines, Indonesia, and a high-profile U.S. debut in Los Angeles. The moves are part of a broader ambition to build a global brand, with registered users now exceeding 200 million.

“Chinese enterprises are undergoing a development phase from ‘Made in China’ to ‘Brand of China’,” Chagee Chairman and CEO Zhang Junjie stated during a recent earnings call. The statement positions the company’s push as part of a larger narrative of Chinese consumer firms seeking a greater presence on the world stage.

Accelerating Global Footprint

Chagee’s international growth has gained significant speed in 2025. As of the first half of the year, the company added 52 new overseas outlets, bringing its international total to 208. The majority are in Malaysia (178), followed by Singapore (16), Indonesia (8), Thailand (5), and the United States (1). The Philippines recently became its sixth market in Southeast Asia.

New market entries have been met with strong consumer interest. The first Indonesian store, which opened in Jakarta in April, sold over 10,000 cups in its first three days. Similarly, its North American debut in May at a popular Los Angeles shopping mall near Beverly Hills saw first-day sales exceed 5,000 cups. A second U.S. location began its soft opening in August. In its second quarter, overseas GMV reached 235.2 million yuan, marking a 31.8% increase from the previous quarter.

A Disciplined Stance on Domestic Price Wars

While expanding abroad, Chagee has maintained a disciplined domestic strategy by sidestepping the intense price wars that have swept China’s beverage delivery sector since April. Unlike many rivals who have relied on heavy subsidies and promotions to capture market share, Chagee has chosen to opt out.

“From a sustainability perspective, a competitive landscape driven by huge subsidies is not sustainable,” Zhang said, noting that such practices can create structural challenges for merchants, service quality, and platform health. He emphasized that the company does not rely on discounts to attract customers. This approach appears to be protecting its profitability, with the company reporting a second-quarter adjusted net profit of 629.8 million yuan on net revenue of 3.332 billion yuan, yielding an adjusted net margin of 18.9%.

A Playbook of Local Partnerships

Chagee's international strategy hinges on deep localization through strategic alliances with established local players rather than a simple franchise model. The company first establishes a local office and at least one directly-operated flagship store to prove its business model before expanding further with partners.

This playbook has led to several key joint ventures:

• In Thailand: A subsidiary of Thai President Foods Plc., maker of MAMA instant noodles, acquired a 51% stake in Chagee’s Thai operations.
• In Malaysia: The company formed a strategic cooperation with hospitality giant Magma Group with a goal to open 300 new stores over three years.
• In Indonesia: It established a joint venture with a subsidiary of local retail conglomerate Erajaya.

This partnership-first approach allows Chagee to leverage the local resources, supply chains, and market expertise of its partners, facilitating a smoother integration and brand localization.

Building a Brand Beyond China

To succeed in more challenging Western markets, Chagee is investing heavily in local talent and brand building. The company began assembling its U.S. team in July 2023, nearly a year before its first store opened.

In a significant move to bolster its global leadership, Chagee recently announced new hires for its North American business. Emily Chang, a former China CEO for McCann Worldgroup and Chief Marketing Officer for Starbucks China, was appointed Chief Business Officer for North America. Aaron Harris, previously a Senior Vice President of Development at Dutch Bros Coffee, joins as Chief Development Officer. “This is not just a key talent acquisition, but also an important measure in our global strategic layout,” Zhang commented. These appointments signal a clear intent to build a durable, international brand, with plans to add over 1,000 more stores globally in 2025.