Cotti Coffee eyes Santa Monica expansion

Cotti Coffee is preparing to open in Santa Monica, with “Coming Soon” signs posted at 1353 Third Street Promenade and 1447 Lincoln Blvd., according to Santa Monica Mirror. The move would add two Westside locations for a Chinese coffee chain that launched in 2022 and has expanded rapidly overseas. (smmirror.com) The Santa Monica sites surfaced as another restaurant chain, Australia’s Guzman y Gomez, said on May 22 it would leave the U.S. market and shut its Chicago restaurants after weak sales. Together, the two developments show how quickly international food and drink brands can move into — and out of — the U.S. market. ### Where exactly is Cotti looking in Santa Monica? Santa Monica Mirror reported that Cotti has posted signage at 1353 Third Street Promenade and 1447 Lincoln Blvd., at the corner of Lincoln and Broadway in downtown Santa Monica. A separate local report published on May 20 also described Cotti as preparing to enter downtown Santa Monica. The Santa Monica locations matter because they place Cotti in two high-traffic retail corridors: the Promenade and the Lincoln-Broadway area. Mirror did not give opening dates, and Cotti’s global website did not list those two stores as open locations as of May 22. (smmirror.com) ### How big is Cotti now? Cotti launched in China in 2022 and has described itself as operating more than 18,000 stores globally. Santa Monica Mirror said the chain is present in 33 countries, while Cotti’s own international website says it is in 28 countries with more than 10,000 stores. Industry publication Global Coffee Report also said in February that Cotti claimed more than 18,000 stores in 33 countries. (smmirror.com) The mismatch in store and country counts means the company’s footprint depends on which public source is used. What is consistent across the reports is the pace: Cotti went from a 2022 launch to a large international network in under four years. (smmirror.com) ### Why does Guzman y Gomez matter to this story? Guzman y Gomez said on May 22 it would exit the U.S. market and immediately cease operations at its Chicago restaurants after concluding the business was unlikely to meet performance thresholds. Reuters reported that the company blamed poor sales and said stronger sales momentum had not materialized. (smmirror.com) Founder and co-CEO Steven Marks said the company would have needed “significantly more time and capital” than expected to scale in the United States, according to Reuters. The chain said it would take a one-off hit of $30 million to $40 million in its 2026 results related to the exit, subject to audit. (smmirror.com) ### What does that comparison show about U.S. expansion? Chicago was Guzman y Gomez’s entry point into the U.S. in 2020, and by 2026 the company had about eight restaurants there, according to Reuters and other reports surfaced in search. (money.usnews.com) Cotti, by contrast, is still at the storefront-sign stage in Santa Monica, which means its U.S. push appears earlier and lighter in capital commitment at the local level. That is an inference from the reported facts, not a statement by either company. Santa Monica has also remained active for new coffee and dining openings this year, with local reports on other concepts including Intelligentsia and Dragon Alley Coffee Shop. (money.usnews.com) That places Cotti’s move in a market where new food-and-beverage entrants are still seeking space despite broader pressure on restaurant economics. ### What comes next in Santa Monica? The next public markers for Cotti in Santa Monica are likely to be permit filings, hiring, construction activity or opening dates tied to the two listed addresses. Santa Monica Mirror identified the sites, but neither that report nor Cotti’s website gave a launch timeline. (money.usnews.com) Guzman y Gomez, meanwhile, said the U.S. shutdown would be reflected in its 2026 results, with the one-off exit cost subject to audit. Investors and competitors will now be able to compare Cotti’s next U.S. openings against a fresh example of how difficult restaurant expansion can be in the American market. (smmirror.com) (whtc.com) (smmirror.com)