Why Is the Most Expensive Coffee Beans Brand Closing Stores?

Mstand, a specialty coffee chain often associated with premium pricing, has closed several commercial-district stores. Its first Wuhan location in Wushang Mall shut on July 14 and is being replaced by Yulian Tea House; the Optics Valley Dayang store left in April after less than a year, and sites in Hangzhou and Nanjing have also suspended operations.

Consumers cited high prices, products seen as lacking memorable points, and a revamped membership system that alienated regulars. Observers link the retreat to weaker coffee innovation, declining sales at some stores, and rent and operating pressure in shopping malls, as the brand shifted attention toward peripheral goods rather than its most expensive coffee offering lineup.

Recently, Mstand's first store location in Wuhan Wushang Mall was replaced by Yulian Tea House, and the Optics Valley Dayang store has also withdrawn, sparking attention. Not only in Wuhan, but some stores in Hangzhou, Nanjing, and other places have also suspended operations. Netizens hotly discussed its high prices and products lacking memorable points, and the adjustment of the membership system made old users feel betrayed. In recent years, the brand has focused on peripheral products, with insufficient coffee innovation, declining sales in some stores, and ultimately withdrawing from commercial districts due to rent and operational pressure. Is Mstand's store withdrawal phenomenon inevitable? This article reviews store changes and consumer feedback to explore the challenges the brand faces.

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Recently, netizens in Wuhan noticed that the original site of Mstand's first store in Wushang Mall has been taken over by the currently popular Yulian Tea House, and the location is currently under hoarding construction.

From inquiries on delivery platforms, this store has shown as closed. Data from Jihai Brand Monitoring also indicates that the Wushang Mall store officially closed on July 14. However, on the official mini-program, the Wushang Mall store can still be found in the Wuhan store list and orders can be placed, but the marked address has been changed to the coffee cart on the first floor of the plaza.

Another netizen revealed that Mstand's Optics Valley Dayang store in Wuhan also exited in April this year. Data from Zhaomen Canyan shows that the store survived for less than a year. The successive withdrawal of two stores in bustling commercial districts indeed surprised fans. In addition, observant netizens found that during the period when the Wushang Mall store and Optics Valley Dayang store were gradually closing, Mstand did not open new stores in Wuhan.

However, it is not only in Wuhan; some Mstand stores in commercial districts in cities such as Hangzhou and Nanjing have also suspended operations, but whether they have completely withdrawn or are seeking alternative locations to continue operating, there is currently no clear statement.

Chain brands in commercial districts often have to relocate or close stores due to rent pressure, mall business adjustments, and other factors. It can be inferred that the reason for Mstand's store closures may be related to mall planning. However, netizens believe that the reasons for Mstand's successive closures are far more than these.

In discussion threads about Mstand's withdrawal from Wuhan, netizens' first impressions of Mstand generally focus on aspects such as "expensive," "poor value for money products," and "coffee without memorable points." Some consumers bluntly stated that compared to Manner, which also starts with M, Mstand's prices have no advantage. If compared with Starbucks, the frequency of beverage updates is not high, and it also lacks the brand's own characteristics.

Unlike ordinary consumers, those fans who were once "captured" by a cup of Mstand's rich coffee and recharged to become members have mixed feelings when talking about this brand.

They said that after initially recharging to become Mstand members, the account's consumption points could be exchanged for peripheral gifts, and the price of purchasing coffee was more cost-effective than for ordinary consumers. Therefore, many users would continuously recharge and consume, enjoying the membership benefits that were extremely favorable to them.

But at some unknown point, prices for proxy orders in livestreams and third-party platforms became more cost-effective than members purchasing themselves. In addition, the brand recently significantly changed its membership system and canceled the cup-collecting activity, which made some old users lament that they had been betrayed multiple times and give up their membership status that they had maintained for many years.

In addition, users who have accompanied Mstand for many years said that in recent years Mstand seems to have focused on launching various novel peripheral products. Some time ago, the brand opened a pop-up supermarket in Shanghai mainly selling peripherals, attracting many trendsetters to check in and snap up purchases.

However, in terms of coffee beverage innovation, apart from the edible combo that sparked discussion after its launch, Mstand's other new products seem to have sunk like a stone into the sea, making it difficult to gain consumer attention. On social media, there is also mostly discussion about the brand's newly released peripherals, making many fans feel that the current Mstand is more like a peripheral store under a coffee brand.

Under the influence of various factors, sales in some Mstand stores have declined and become increasingly quiet. Ultimately, unable to bear the heavy burden of rent, operating costs, and other pressures, withdrawing from bustling commercial districts is not an incomprehensible situation, but, as netizens say, "Mstand's store withdrawal may be inevitable."

Image source: Internet

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