How Does the Chayan Yuese Store Contraction Compare With Coffee Chains?

Chayan Yuese has closed roughly 70 stores in about four months, with operating outlets falling from 973 in early October to 903, according to Jihai Brand Monitoring. The brand's first Wuhan location, a 200-square-meter 'Chayan grocery store' on the seventh floor of Wuhan International Plaza, has been replaced by construction hoarding for another restaurant.

Closures have appeared in Changsha and Wuhan even as the chain expands into cities such as Changzhou. The company has not tied the exits to a single cause. Lease expiry, layout adjustment and profitability pressure have all been raised, and customer complaints about the drink verification mechanism have resurfaced in the discussion.

The Chayan Yuese Yuanyuanhui store, which once had long queues on the 7th floor of Wuhan International Plaza, has now quietly been replaced by construction hoarding for another restaurant. This roughly 200-square-meter "Chayan grocery store," one of the first batch of stores opened when the brand entered Wuhan in 2020, quietly exited after accompanying consumers for four years. More noteworthy is that similar closures are not isolated cases—stores of Chayan Yuese have successively shut down in cities such as Changsha and Wuhan. Data from Jihai Brand Monitoring shows that its operating stores dropped from 973 in early October to 903, meaning at least 70 stores disappeared within a few months. At the same time, the brand is still expanding into new cities such as Changzhou. Behind the store contraction, is it lease expiry, layout adjustment, or pressure on profitability? Consumers' complaints about the verification mechanism have also been mentioned again.

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Recently, a Wuhan netizen posted on social media that the Chayan Yuese on the 7th floor of Wuhan International Plaza had been removed at some point, and the original space was covered by construction hoarding for another restaurant brand, making it impossible to tell what it used to look like.

It is understood that this store was one of the first batch of Chayan Yuese stores when it entered Wuhan in 2020, and it was also the brand's first new retail store format launched in Wuhan, "Chayan Yuanyuanhui." The store was about 200 square meters, the largest among Wuhan stores at that time.

In this store, customers could not only drink Chayan Yuese's classic beverages, but also buy various cultural and creative merchandise. Because of this, on the day the store officially opened, a large number of fans came to line up and check in, taking photos to record the first cup of Orchid Latte they drank in Wuhan and the merchandise they bought.

However, four years later, this "Chayan grocery store" with a complete range of merchandise quietly withdrew from the mall, leaving many users caught off guard. "I wanted to drink Chayan when going to the movies, but I can't anymore," "The first time I drank Chayan in Wuhan was at this store, I lined up for two hours," "What will I drink when going to the movies from now on," "Their merchandise was quite complete, and it actually closed."

Apart from regret, some Wuhan netizens also said that Chayan Yuese stores around them seem to be decreasing. "The Chayan downstairs from my company is also gone, it had been open for less than a year," "The Chayan downstairs at K11 is also gone," "One also closed at Capital Mall Xicheng."

Local consumers say that many Chayan stores in Wuhan have quietly closed. Some of them may be related to store lease expiry, while others guess that the brand is actively adjusting its store layout, such as the aforementioned 7th-floor store at Wushang. Local netizens pointed out that Wushang Plaza has a Chayan store on the 1st floor and another on the B1 floor, both in very good locations. Although the 7th-floor store is close to the cinema and also large in size, it means the brand needs to pay high rent for this prime location.

Therefore, in their view, the brand may have ultimately chosen to withdraw because the store's profitability was insufficient, and because it believed there was no need to open too many stores in the same mall.

Interestingly, some netizens found that besides Wuhan, many Chayan stores in other cities have also suddenly closed, leaving plenty of discussion. Searching "Chayan Yuese store closures" on social platforms shows that such posts have appeared one after another since mid-November last year, involving cities such as Changsha and Wuhan, with a rough count of no fewer than 10.

Of course, the old must go for the new to come. While closing stores, Chayan is also turning its attention to other cities. Recently, an observant passerby noticed that a storefront with Chayan Yuese advertising on construction hoarding has appeared in Changzhou, and it will soon finish renovation and open for business.

However, although Chayan Yuese has not stopped opening stores during this period, data from Jihai Brand Monitoring shows that its current number of operating stores is 903, compared with 973 in early October, meaning at least 70 stores have quietly disappeared in these few months.

In response, some netizens familiar with Chayan Yuese believe that although the brand has won recognition from many consumers through its products, merchandise, and service, it should also listen to outside advice and change its long-criticized verification mechanism. After all, most people buy milk tea to drink a cup of good beverage, not to experience "standing punishment-style" pickup.

Image source: online screenshot

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