(Yicai Global) Sept. 8 -- Starbucks rival Costa Coffee will stay alert for the chance to open new stores in Qingdao after closing all of its outlets in the coastal Chinese city as part of a business restructuring in China.

The coffee chain has not slowed the pace of store openings in the country, China Securities Journal reported today, citing the London-based firm.

Costa recently closed some stores in Beijing, Hangzhou, and Nanjing because of lower footfall, according to a report by China Central Television’s finance program. It has shut more than 10 percent of its Chinese mainland stores, including all in Qingdao and nearly 20 in Beijing.

“Every year we close a small number of stores that have been operating poorly for a long time and put resources on high-quality outlets to provide customers with better products and services,” the company said. “At the same time, changes in consumer behavior have prompted Costa to speed up adopting a diversified channel strategy centered on consumption scenarios.”

Owned by Coca-Cola, Costa entered the Chinese market in 2006 and had set a goal to open 2,500 stores by 2018 to take a third of the market. It has only about 400 coffee shops in China. Starbucks has more than 4,000.

A first batch of new stores will be opened in Zhejiang, Jiangsu, Fujian and other provinces, as well as in special channels such as transport hubs and hospitals next year. Costa said it will branch out across the country gradually.

“We have full confidence in the Chinese market and will continue to invest and develop in China,” Costa said, adding that applications and negotiations for its current city franchise program have already begun.

Editor: Peter Thomas