On January 8, DM CAFE announced on the Chinese social media Redone platform that it has secured its first store in Sydney, signaling its official entry into the Australian market.
The move positions DM CAFE as the latest Chinese coffee brand to test expansion in one of the world’s most sophisticated and discerning coffee markets. The Australian coffee market was valued at USD 2.44 billion (approximately AUD 3.7 billion) in 2025, with residents consuming an estimated 16.3 million cups of coffee each day.
DM CAFE Official Redone
DM CAFE, formally branded as DREAME CAFE, is unlike traditional beverage retail chains. Incubated by Dreame Technology — a self-described global premium consumer electronics and intelligent manufacturing group best known for its smart home and cleaning appliances — DM CAFE has rapidly scaled since its founding just less than three years ago. The brand claims to sign 200 franchise stores per day, while its designer-inspired flagship in Shanghai reportedly sells over 2,000 cups a day.
DM CAFE’s latest expansion comes amid a broader wave of Chinese coffee brands going global. Cotti Coffee entered the Australian market in 2024, becoming the first large-scale Chinese coffee chain to establish a local footprint. According to Cotti Coffee official figures, as of September 2025, Cotti Coffee has opened 20 stores across Australia, with multiple additional locations currently in preparation.
Luckin Coffee, China’s leading coffee chain, accounts for around 35% of all stores nationwide, according to the 2024 China Urban Coffee Development Report. The company operates fully company-owned stores to maintain quality, and while not yet in Australia, it is expanding rapidly across Asia and the U.S., with over 24,000 stores worldwide by Q1 2025.
Australia’s coffee market remains highly competitive for franchised cafés and foreign entrants. After entering Australia in the early 2000s, Starbucks expanded to around 84 stores but later closed 61 following years of weak consumer acceptance. A Patio Coffee journal article attributed the retreat to over-expansion, insufficient localisation, and misalignment with Australia’s deeply entrenched café culture.