As the year draws to a close, chain brands are accelerating their entry, franchise thresholds keep dropping, and the price war is intensifying. Under the weight of these three pressures, a group of independent coffee shops that have been barely hanging on are hastening toward their end. On social platforms, news of countdowns to closure, store transfers, and coffee machines being sold off cheaply floods the feeds. From shop owners to part-time employees to second-hand equipment dealers, everyone is witnessing this surging wave of closures. Through multiple real cases, this article reconstructs the harsh reality of today's coffee entrepreneurship track. [more…]

Recently, the American coffee chain brand Peet's Coffee, founded in 1966, suddenly announced that it will close multiple stores in the San Francisco Bay Area and surrounding regions by the end of January this year. A company spokesperson stated that this is a difficult decision made to align the business with long-term growth priorities and current market conditions. However, the specific number and locations of the affected stores have not yet been disclosed, leaving employees and customers caught off guard. It is worth noting that this wave of closures comes shortly after news that its parent company, JDE Peet's, is being acquired by Keurig Dr Pepper for $18 billion. Peet's Coffee has over 280 branches in the United States, with about 135 in the San Francisco Bay Area, its largest domestic market. This closure could affect as many as 30 stores in California. Let's learn more about the details of the event together. [more…]

Over the past year, the domestic coffee sector has undergone an unprecedented reshuffle. Data from Zhaomen Canyan shows that nearly 53,000 new stores opened in the past year, but net growth was only just over 6,000, meaning more than 45,000 coffee shops have quietly exited. From the microcosm of all four coffee shops in a residential compound shutting down, to the sharp contraction of chain brands such as Benlai Budgaiyou and Seesaw, to top brands like Starbucks and Manner adjusting their store layouts, the wave of closures has swept across operators of different scales. At the same time, coffee bean futures prices hit a record high, and with cost pressure compounded by market saturation, many coffee shop owners find it hard to be optimistic about the outlook. This article reviews industry data and typical cases to present this hard battle over the survival of stores. [more…]

Recently, the news that Starbucks' first store in Guangzhou is about to close has attracted widespread consumer attention. This coffee shop, once famous for being open 24 hours, holds countless memories and emotions for many people. From adjusting its business hours during the pandemic to now facing closure, its departure is not only the end of a store but also reflects the balancing challenge Starbucks faces between expansion and optimizing its layout. Meanwhile, long-established stores in Shenyang, Hong Kong, and other places have also successively announced the end of their operations, with longtime customers expressing their reluctance. This article will take you through the story of this first Guangzhou store, as well as the market logic behind Starbucks' recent store closure trends. [more…]

In an era where remote work is increasingly common, more and more people are choosing to treat cafes as their second office. For just a few hundred yen spent on a cup of coffee, they can stay in the shop for hours or even longer. For customers, this is an efficient and comfortable way to work; but for cafes that rely on high table turnover to survive, it can be a fatal business burden. Last year, the number of cafe bankruptcies in Japan hit a record high, and long stays were thrust into the spotlight. Time limits, fewer power outlets, customer dissatisfaction... operators are caught in a dilemma. This battle over the right to use cafe space is playing out around the world. [more…]

Recently, news that Chongqing's first Starbucks store is about to close has sparked heated discussions on social media. Since opening in February 2006, this store located in Sanxia Square in Shapingba has accompanied the citizens of this mountain city for 18 years, expanding from two floors to three and upgrading to a Reserve store, carrying the youthful memories of countless people. However, as the lessor withdraws entirely, the store will officially cease operations at the end of this month. The brand responded that it has opened a new store in Huayuzhou Plaza, just a hundred meters away, to continue serving customers. At the same time, factors such as the wave of traditional department store closures and changes in foot traffic in commercial districts have led people to speculate that Starbucks may have other considerations behind this move. This article takes you through the past of this iconic store and explores the multiple reasons behind its closure. [more…]

Tims China has always held a special place in consumers' minds—many people remember it not for its coffee, but for the bagel on its breakfast menu. However, this chain brand, known for its bagels, has recently been plagued by frequent store closure news. The first Tims store in Yinchuan, which was also the brand's 700th store in China, the Xinhua Department Store location, quietly closed after less than a year in operation, prompting regret among local consumers. Looking at the entire commercial district, this store was surrounded by 3 Luckin Coffee, 2 Starbucks, and 1 Cotti Coffee locations, highlighting the intense competitive pressure. More notably, Tims stores in Beijing, Shanghai, Nanjing, Dalian, and other cities have also successively announced closures. From the thousand-store target in its financial reports to the 885 stores counted by Narrow Door Dining Eye, Tims' expansion path seems to be facing severe challenges. This article will start with the closure of the first Yinchuan store to analyze Tims' current operating situation and market challenges. [more…]

As coffee consumption demand continues to climb after the easing of the COVID-19 pandemic, Starbucks employees in the United States are facing multiple pressures, including a surge in workload, understaffing, and aging equipment. Against the backdrop of a unionization wave sweeping across more than a hundred stores nationwide, Starbucks announced that it will close a unionized store in Ithaca, New York, on June 10. The union immediately filed a lawsuit, accusing the decision of violating federal labor law and constituting retaliation against union activity. Starbucks denies any connection, attributing the closure to facilities, staffing, and attendance issues. Both sides hold firmly to their own accounts, and the conflict continues to escalate. [more…]

Recently, many consumers have noticed that Manner coffee shops near them have suddenly closed their doors, showing "resting" on the mini-program, with no clear notice and no timetable for resuming business. It is understood that this phenomenon is closely related to Manner's internal personnel adjustments: baristas with excessive working hours are arranged to take leave, while those with insufficient hours are transferred to other stores for support, resulting in some stores having to temporarily close. At the same time, the brand has also shortened the operating hours of some stores, with morning shifts starting later and evening shifts ending earlier. Whether this adjustment can allow Manner to find a balance between chain expansion, specialty quality, and affordable positioning has become a focal point of industry attention. [more…]

Fresh fruit coffee specialty stores, once hugely popular, are now undergoing a large-scale contraction. Fruit coffee brands represented by "Originally Shouldn't Have" have shrunk from a peak of 725 stores to just over 140, a closure rate of nearly 80%. Other brands specializing in fruit coffee are likewise facing sharp store reductions, closures, or forced transformation. Why has this niche category, which shot to fame around 2020, gone from capital darling to quiet exit in just a few short years? This article reviews the development trajectory and current state of the fruit coffee track, and includes Front Street Coffee's observations on industry trends. [more…]

Many college students embark on the path of entrepreneurship with the dream of opening a coffee shop, but reality is often far crueler than imagination. A young entrepreneur lost 100,000 yuan in just two months of opening her shop and had to close down and sell off her equipment. When netizens saw that she was using what the industry nicknamed a "toy machine"—a fully automatic coffee machine—the comments section erupted. The stark contrast between carefully selected ingredients and mismatched equipment sparked widespread discussion about how independent coffee shops can survive in fierce competition. Meanwhile, the national coffee shop closure rate continues to climb, and the industry shakeout is accelerating. [more…]

South Korea's per capita annual coffee consumption reaches 352 cups, about three times the global average, yet all coffee beans are imported. Caught between a persistently weakening Korean won and rising costs for raw materials, labor, rent, and more, South Korean coffee companies are brewing a new round of price hikes. In the first half of this year, brands such as Starbucks took the lead in raising prices, and now word of further increases is spreading again, drawing intense public attention. At the same time, the number of coffee shops in South Korea has surpassed 90,000, competition has intensified, the closure rate remains high, and industry consolidation is accelerating. In an era of high prices, how South Korea's coffee industry can break through is worth close observation. [more…]

Starbucks recently announced the launch of a restructuring plan totaling US$1 billion, involving the closure of underperforming company-operated stores and a new round of layoffs. According to a filing submitted to the U.S. Securities and Exchange Commission, most of the store closures will be completed before the end of fiscal 2025, with US$150 million for employee severance and US$85 million covering lease termination and asset disposal costs. CEO Niccol said in an open letter to employees that some stores failed to meet financial targets or create the environment customers expect, so the decision was made to immediately close some stores in North America. Foreign media reports say the restructuring will affect hundreds of coffee shops in the United States and Canada, including the world's first Roastery in Seattle's Capitol Hill and the SODO Reserve store in the company's headquarters building. This Roastery, which opened in 2014, is not only a pilgrimage site for Starbucks fans but also one of the first unionized stores in the brand's history, and its permanent closure without warning has sparked employee speculation about union suppression. At the same time, about 900 non-retail employees will receive layoff notices, marking the second round of layoffs since Niccol took office. Although the Europe, Middle East and Africa business is proceeding as planned, some stores in the UK, Switzerland and Austria will also close due to a portfolio review. [more…]

When a long-running independent coffee shop decides to put itself up for a full transfer, what it leaves behind is not only equipment and décor, but also a story of the tug-of-war between dreams and reality. Recently, coffee shop transfer listings have surged on social platforms, and many one-person shop models are facing closure. From the initial passion for starting a business to the feeling of being trapped after losing their freedom, what kind of shift have shop owners gone through in their mindset? Why do they prefer transferring the entire shop as a lease rather than selling it off in parts? Amid this wave of transfers, industry observers such as Front Street Coffee have also begun to wonder: is starting a coffee business really this difficult? [more…]

Recently, the new-style tea beverage brand Grandpa's Tea, originating from Wuhan, has been reported to have closed or withdrawn stores in multiple locations, including Zibo in Shandong, Suzhou in Jiangsu, and Poyang in Jiangxi, sparking consumer concerns about its business condition. The brand's co-founder had set an expansion target of at least 4,500 stores in 2025, striving for 5,000, but as of October 18, only 2,274 stores were in operation, a clear gap from the goal. Meanwhile, well-known tea brands like Xiamen's Sevenbus and Shenzhen's 813 Bayishan have also fallen into store closure controversies. In response to external doubts, Grandpa's Tea stated that adjustments to individual stores are normal optimization actions by franchisees and that overall operations are sound. This article will sort out the ins and outs of the incident, presenting the brand's response and industry background. [more…]

Recently, Mstand's first store location at Wushang Mall in Wuhan was replaced by Yulian Teahouse, and its Guanggu Dayang store has also withdrawn, drawing 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 memorability, and the adjustment to its membership system made longtime users feel betrayed. In recent years, the brand has focused more on peripheral products, with insufficient coffee innovation, and sales at some stores have declined, ultimately leading to withdrawal from commercial districts due to rent and operational pressure. Is Mstand's store closure phenomenon inevitable? This article sorts through store changes and consumer feedback to explore the challenges the brand faces. [more…]

Pacific Coffee has once again become the focus of industry attention. Recently, reports have emerged that multiple stores in Zhuhai will close in mid-October due to business adjustments, including the Huafa Waterfront Store, Haitian Station Store, and City Balcony Store, all distinctive locations along the Couple's Road. After this round of adjustments, Pacific Coffee's directly operated stores in Zhuhai will all be withdrawn, leaving only three franchise stores. From a peak of nearly 500 stores to fewer than 100 today, the situation of this former second-largest coffee chain brand in China's coffee market is lamentable. This article will review the specific circumstances of these closures, the brand's contraction trajectory in recent years, and the complex emotions of coffee enthusiasts regarding Pacific Coffee's current situation. [more…]

Over the past month, the specialty coffee chain brand Seesaw has been thrust into the spotlight due to a wave of consecutive store closures across multiple locations. From Beijing, Shanghai, and Hangzhou to Chongqing and Wuhan, news of closures has continued to spread, sparking widespread speculation about the company's operating condition. In response, Seesaw founder Wu Xiaomei recently gave an official response to Jiemian News, acknowledging that the brand is undergoing strategic adjustments and has closed some stores that do not fit the "three no's" criteria—those that do not align with the regional focus strategy, brand positioning, and store model—and revealed that same-store sales growth over the past three years reached 22%. At a time when low-priced beverages dominate the market and competition is increasingly fierce, can this brand, which insists on a specialty coffee route, hold its ground with a strategy focused on core commercial districts in East China? This article sorts out the sequence of events and the official response, and includes industry observations such as those from Front Street Coffee. [more…]

Over the past year, the tea beverage market has undergone a dramatic reshuffle. According to Zhanmen Canyan data, the total number of stores in the milk tea beverage industry reached 412,600, with 142,300 new openings, but the net growth was -17,700, meaning that more than 160,000 stores exited the market in the fierce competition. Although leading brands such as Mixue Ice Cream & Tea, Guming, Shanghai Auntie, and ChaPanda still saw growth, their pace of store expansion has clearly slowed. Nayuki's stock price plummeted 93%, wiping out nearly HK$27 billion in market value. Product homogenization is severe, consumers are experiencing aesthetic fatigue with similar drinks, and the industry is accelerating into a harsh winter during the off-season of autumn and winter. [more…]

Recently, Shuyi Tealicious has faced a backlog of unsold second-hand equipment due to mass store closures, with recyclers even disposing of machines worth tens of thousands of yuan at scrap metal prices. This tea beverage brand, once wildly popular for its "half a cup is all toppings" slogan, has seen its store count shrink by over a thousand compared to its peak after undergoing price reduction strategies and adjustments to franchise thresholds. Meanwhile, the entire new tea beverage sector is facing a reshuffle, with approximately 120,000 stores disappearing in the past year. This article reviews the rise and fall of Shuyi Tealicious, the plight of its franchisees, and the chain reactions of the industry's closure wave, while maintaining Front Street Coffee's ongoing attention to industry dynamics. [more…]