Why does a specialty coffee store close so soon in Shanghai?

The %Arabica store in Fengsheng Li, Shanghai, closed on August 5, 2024, roughly six months after opening on February 2. The shop had been the brand's first location to serve coffee in ceramic dine-in cups, with interiors styled after old Shanghai Haipai design, and it drew steady attention when it opened.

The closure notice cited a brand strategy adjustment. Nearby residents point to dense competition in the area from Blue Bottle Coffee, Luckin and Manner, plus thin weekday foot traffic. The store also let customers blend beans and watch the roasting process from raw to roasted, features regulars now lose.

Recently, a %Arabica store in Fengsheng Li, Shanghai, suddenly posted a closure notice, announcing that due to a brand strategy adjustment, it would cease operations on August 5, 2024. This store had only opened in February of this year and was once %Arabica's first location to offer ceramic dine-in cups, blending the old Shanghai Haipai style; customers could also blend coffee beans under the guidance of baristas and observe the roasting process. However, after just half a year, the store quietly exited, shocking many loyal customers. Nearby residents pointed out that coffee shops are densely packed around Fengsheng Li, with extremely fierce competition from brands like Blue Bottle Coffee, Luckin, and Manner, plus limited foot traffic on weekdays, so this %Arabica's departure might be understandable.

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Yesterday, a netizen passing by Fengsheng Li in Shanghai on their way to work noticed that the %Arabica store next to the subway station exit was empty, and upon approaching, found a notice posted at the door: "Due to a brand strategy adjustment, we will cease operations starting August 5, 2024."

For consumers who had bought coffee at this %Arabica, the closure notice came too suddenly. Some said they had bought drinks here just last weekend and didn't expect the store to stop operating just a day later.

It is understood that this store opened on February 2 this year and was %Arabica's first location with ceramic dine-in cups. The interior design blends the old Shanghai Haipai style, aiming to let customers better relax here, enjoying coffee and baked goods while experiencing the unique charm of Shikumen.

In addition, besides regularly updating the coffee bean menu, customers can also blend coffee beans from different origins under the guidance of professional baristas in the store and witness the roasting process of coffee beans from raw to roasted.

From hoarding for renovation and opening to welcome customers, to now quietly closing, it has only been half a year. Nearby residents said that at the time of opening, many internet-famous visitors could be seen in front of this %Arabica, and there were also quite a few fans who came specifically to check in and try it. Unexpectedly, just a few months later, this store has reached its "graduation" outcome, which inevitably makes loyal users feel shocked and regretful.

However, some citizens believe that this %Arabica's closure is also understandable. Because in the vicinity of Fengsheng Li where the store is located, there are no fewer than 10 coffee shops for consumers to choose from.

Among them, Blue Bottle Coffee's third domestic store, Zhangyuan Store, is located here, and nearby there are also chain brand stores such as Luckin, Manner, KUDOO, as well as some independent cafes with unique characteristics.

In contrast, %Arabica, which focuses on specialty coffee, entered this area later than the same-type competitor Blue Bottle Coffee, which had already established a foundation. Its product cost-performance is also not as good as Manner, which has multiple stores nearby. So, even with exquisite store decoration and a superior geographical location, this %Arabica can attract very limited customers.

Nearby residents pointed out that although the area around Fengsheng Li has a unique charm and can attract tourists to check in and play, on weekdays, the foot traffic here is not that high, which also leads to extremely fierce competition among coffee shops in this area.

Not long ago, the chain coffee brand Costa closed a store that had been operating here for over a decade, and nearby regular customers were very regretful. But some also believe that this %Arabica store, which only operated for half a year, might have found the store deserted and revenue unable to cover daily operations, and out of consideration for cutting losses in time, hastily withdrew from this competition circle where every inch of land is precious.

Image source: Xiaohongshu

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The above content is compiled by CoffeeHunters, a coffee news website.