Philippine %Arabica Cafes Close Abruptly as Company Cites Ended Partnership and Hacked Account
%Arabica stores in the Philippines closed without warning this week, leaving customers and staff confused. The Japanese coffee brand, known for its minimalist white cafes and single-origin beans, operates through local franchise partners in many markets. Social media accounts tied to the Philippine stores went dark or posted unusual messages, and several locations were shuttered during normal business hours.
In a later statement, the company said its partnership with the local operator had been terminated and that one of its accounts had been compromised. %Arabica did not give a timeline for reopening Philippine locations. Arabica beans, the species the brand is named after, remain the most widely traded coffee in the world. Customers in Manila said they had not received refunds for prepaid orders.
On January 30, multiple %Arabica stores in the Philippines suddenly closed their doors, and their official Instagram account also appeared to be deactivated, sparking speculation among local consumers and media about whether the brand would withdraw from the Philippine market. The next day, %Arabica posted a statement on Facebook saying it had terminated its partnership with former Philippine partner Allue Hortaleza, that existing stores were temporarily closed, and that it had found a new agency, promising to resume operations within the year. Regarding the account deactivation, the official explanation was hacking, and updates have now resumed. The former partner also issued a statement on February 1, saying it would continue to provide high-quality coffee. Behind the incident, some netizens speculated that the post-pandemic business recovery prompted the former partner to strike out on its own. How will this sudden breakup turmoil affect %Arabica's future in the Philippines?
On January 30, a Philippine netizen posted on social media that the %Arabica store in Taguig City had stopped operating without warning. Soon after, netizens from other regions of the Philippines also posted that their local %Arabica stores were likewise closed. Even more surprising, %Arabica's official Instagram account (arabica.journal) also showed as deactivated. Faced with this series of sudden developments, local netizens and media could not help but ask: Is %Arabica about to withdraw from the Philippine market?
Facing the growing public outcry, on January 31, %Arabica Coffee formally responded on Facebook. The statement mentioned that the brand had terminated cooperation with its former Philippine partner Allue Hortaleza, so existing %Arabica stores in the Philippines would be temporarily closed. At the same time, %Arabica revealed that it had found a new agency for the Philippine market and promised to resume operations of Philippine stores within the year, though store locations would be adjusted.
Regarding the official Instagram account appearing deactivated, %Arabica explained that the account had been hacked and the team was actively contacting the platform to seek restoration. As of press time, the account has resumed normal updates. Subsequently, a netizen commented: "Even if you're going to close temporarily, you should give advance notice... you made us think %Arabica was withdrawing from the Philippine market😅" %Arabica replied: "We didn't expect our former partner to suddenly suspend store operations either... They said they would open their own brand's coffee shops at the original locations."
On February 1, %Arabica's former Philippine partner Allue Hortaleza also issued a statement on Instagram, confirming that the partnership had ended, but emphasizing that they would continue striving to provide consumers with high-quality coffee.
Although both sides gave official responses, many netizens still believe that after two years of the pandemic, the Philippine economy is gradually recovering and more and more people are visiting coffee shops. %Arabica has always been a popular internet-famous café for Philippine netizens to check in at, and its coffee output has always been stable and excellent, so business should have been very good going forward. Choosing to split at this time may be somewhat irrational. Some also speculate that it is precisely because they saw signs of business recovery that the former partner planned to "start their own venture"—after all, that way the money earned would no longer need to be shared with %Arabica. But after leaving %Arabica, how will the former partner's coffee shop business fare? We can only wait and see.
Image source: Internet
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The above content is compiled by CoffeeHunters, a coffee news website.
