CHAGEE's First U.S. Store is Open! 2 More on the Way.

CHAGEE Launches First U.S. Store in Los Angeles, Targeting Prime Market

On May 9, the popular Chinese tea brand CHAGEE made its official U.S. debut, opening its first store in a high-traffic area of Los Angeles. The launch signals the brand’s serious ambitions for the American market and adds to the growing competition among new-style tea franchises.

A Strategic Location for Success

The new store is strategically located in the Westfield Century City mall, a popular shopping destination near Beverly Hills and West Los Angeles. The location was chosen to attract a steady flow of customers, with over 45,000 office workers within a one-mile radius.

The store’s design maintains CHAGEE’s signature aesthetic, blending traditional Chinese elements with a modern, sleek style.

A Focused Menu for the U.S. Market

The menu features 14 core drinks organized into three simple categories: Tea Lattes, Pure Teas, and other specialties. It includes global best-sellers like the “Bo Ya Jue Xian” Jasmine Green Tea Latte alongside freshly brewed options such as Da Hong Pao, Ceylon, and Lapsang Souchong lattes.

Pricing is positioned for the premium market:

• Jasmine Green Tea Latte (Large): $5.95
• Ceylon Black Tea Latte (Large): $6.45
• Peach Oolong Tea (Large): $4.95
• Bakery Items: The store also offers nine baked goods, priced from 4.25to4.25 to 4.25to6.45.

Grand Opening Buzz and Marketing Strategy

CHAGEE hosted its signature “Tear & Win” event to celebrate the launch, where customers could win high-value prizes like a CHANEL handbag, a MacBook Air, and Dior lipstick.

The brand also launched digital promotions, including a “Buy One, Get One Free” offer on its official app and special bundle deals on delivery platforms like PandaBUY.

Rapid Expansion and Head-to-Head Competition

CHAGEE is already planning its next move. A second U.S. location is currently under construction at the Brea Mall in Los Angeles and is expected to open this summer.

Interestingly, competitor HeyTea is also setting up a shop on the second floor of the same mall, setting the stage for direct competition between two of China’s biggest tea brands.

The Growing Wave of Chinese Tea Brands in the U.S.

CHAGEE’s U.S. entry is part of a larger global expansion strategy. As of late 2024, the company had 156 overseas stores in countries like Malaysia, Singapore, and Thailand, with plans to open another 1,000 to 1,500 stores globally in 2025.

The United States has become a key battleground for Chinese beverage brands. At least 22 have already entered the market, including major players like:

• HeyTea (with 27 stores and counting)
• Auntea Jenny (recently listed on the stock market)
• Nayuki (rebranded as “Naìsnow” for the U.S.)
• Luckin Coffee

Market Opportunity vs. High Costs

The U.S. market offers huge potential. American consumers have strong purchasing power, and there is a growing demand for new-style tea, especially among international students and young professionals.

However, the challenges are significant. High costs for labor, rent, and supply chain management can make it difficult to succeed. Brands need strong brand recognition and operational efficiency to thrive in this competitive environment.

By actively hiring for marketing, corporate culture, and tech development roles on LinkedIn, CHAGEE is signaling a long-term commitment to the U.S. market. While the opportunity is clear, only time will tell how far this “cup of Chinese tea” can go.