Why Did the %Arabica Coffee Store in Hohhot Close?

The first %Arabica store in Hohhot, located in MixC, will stop operating from December 16, roughly five months after opening in early July. The shop was listed as a pop-up on the brand's mini-program, was originally planned for about three months, and continued under a renewed lease before the closure notice appeared.

Regulars learned of the shutdown by text message and came to stock up on beans. Local residents point to pricing above 40 yuan and falling mall foot traffic as reasons the pop-up performed only modestly, so the exit was not a surprise. The brand has also closed stores in Nanning, Guangzhou, and Wuxi, continuing some as Kiosk coffee trucks, raising questions about how specialty coffee pop-ups are valued.

Recently, multiple netizens from Inner Mongolia posted that the first %Arabica city store located in Hohhot MixC will officially cease operations starting December 16. This store only opened simultaneously with the mall in early July this year, and is the brand's first store in Hohhot, marked as a pop-up store on the official mini-program. It was originally planned to operate for about three months, and after the lease expired, it was renewed to continue operating until recently when a closure notice appeared at the entrance. Regular customers felt caught off guard after receiving the closure notification text messages and rushed to the store to check in and stock up on coffee beans. Nearby residents believe that %Arabica focuses on specialty coffee, priced at over 40 yuan, which is not cost-effective, and coupled with the mall's fading popularity and reduced foot traffic, the pop-up store's business condition was average, so it's not surprising that it only withdrew after extending to now. Since the beginning of this year, %Arabica stores in Nanning, Guangzhou, Wuxi, and other places have also gradually closed, continuing operations in the form of Kiosk coffee trucks. Some netizens speculate that after the closure of the first Hohhot store, the brand might return in a new form.

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Recently, multiple netizens from Inner Mongolia posted that the first %Arabica city store opened in Hohhot MixC will officially cease operations starting December 16.

It is understood that this %Arabica store opened simultaneously with Hohhot MixC in early July this year, and is the first store opened by the brand after entering Hohhot. The official mini-program shows that the store is a pop-up store, and due to its special limited-time operation, the store attracted many coffee enthusiasts to check in after opening.

Local residents revealed that this %Arabica pop-up store was originally planned to operate for about three months before leaving the mall, but after the lease expired, the store may have reached a new agreement with the mall to continue operating as a pop-up store, until recently when a closure notice was found at the entrance, entering the countdown to closure.

Regular customers who received the closure notification text messages said they were caught off guard by the news, stating that after learning the pop-up store had not closed, they had once thought this %Arabica coffee shop would become a permanent tenant of the mall, providing coffee drinks to nearby users for a long time, but they never expected the closure news to come so suddenly, "I thought it wouldn't leave," "I ordered frequently, how did it say goodbye," "It's closing already?? I haven't had enough yet."

After hearing the closure news, some regular customers immediately rushed to the store to take photos and check in, taste the store's signature Spanish Latte, matcha ice cream, etc., or buy more coffee beans to stock up at home.

Beyond the surprise, nearby residents believe that the closure of the first %Arabica Hohhot store is reasonable. They said that compared with other peers, %Arabica, which focuses on specialty coffee, prices its products at over 40 yuan, which is not cost-effective. Coupled with factors such as the mall's opening popularity fading and reduced foot traffic, the pop-up store's business condition was average, so it's not hard to understand that it only announced withdrawal after extending to now.

However, users paying attention to the brand's movements pointed out that since the beginning of this year, %Arabica stores in Nanning MixC, Guangzhou Parc Central, Wuxi Center 66, and other places have gradually closed, continuing to provide coffee drinks to local residents in the form of Kiosk coffee trucks. From this perspective, some netizens believe that after the closure of the first %Arabica Hohhot store, the brand might appear in this city in a new form.

But some people said that if the store inside the mall becomes a coffee truck parked in an outdoor area, it would more or less make people feel regretful. They said that the coffee truck business model may better fit the current consumption habit of coffee users buying and leaving immediately, and for the brand, it can also reduce operating costs such as store rent and store maintenance, but for consumers, this coffee truck business model will greatly diminish the customer experience.

Moreover, in most people's impressions, %Arabica coffee stores with simple and grand decor are uniquely distinctive, and some storefronts can blend with local scenery to form a unique urban landscape. But when the distinctive coffee shop disappears, although the coffee truck in the open-air area still hangs a logo light sign, it loses the brand's original characteristics, making many people say they have no desire to stay.

It is worth mentioning that although old users hope %Arabica can continue to stay in Hohhot, the official side currently has no further plans after the closure of the first store, and whether it will continue operating in a different mode as fans expect remains to be seen.

Image source: Xiaohongshu

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