Yum China-led JV to open 1,000 Lavazza cafes in China by 2025

It is looking to ramp up its store network in higher-tier cities.

Fast food restaurant company Yum China and Italian coffee brand Luigi Lavazza are planning to open 1,000 Lavazza cafés in China by 2025, injecting $200m initially into the joint venture to fund its future growth, the companies said in a press release.

The joint venture is expected to be Lavazza's exclusive distributor in mainland China to introduce more products from Lavazza's global portfolio, the companies said.

The joint venture plans to ramp up the density of Lavazza café network in higher tier cities with a variety of store formats for a wider range of occasions. With 22 stores as of August 31, the joint venture plans to more than double that by the end of 2021.

The joint venture will also market, sell, and distribute Lavazza's retail products in mainland China, including coffee beans, ground coffee and coffee capsules.

In early 2020, Yum China and Lavazza Group formed a 65:35 joint venture to explore and develop the Lavazza café concept in China. The first Lavazza flagship store in April 2020 was in Shanghai, the first store outside of Italy. Lavazza has since grown to over 20 stores in China across Shanghai, Hangzhou, Beijing and Guangzhou.