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…]

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…]

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…]

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…]

The coffee industry has been riding high in recent years, with chain brands expanding aggressively and specialty coffee shops pulling out all the stops to grab market share. Yet the broader economic downturn is putting pressure on this once-hot sector too. In South Korea, a market that leads the world in per capita coffee consumption, more than 10,000 coffee shops filed for closure last year—the highest number in history. Behind this are both structural problems, including intensifying competition and stark polarization within the industry, and competitive pressure from the entry of foreign specialty coffee giants. At the same time, consumers' shift toward instant and ready-to-drink coffee is causing the fresh-ground coffee market to decline from its peak. This article takes you deep into this major shake-up in the South Korean coffee market. [more…]

Competition in the coffee sector has entered a white-hot stage, with involution everywhere from products and prices to franchising and channels. Data from Canbaodian shows that the coffee shop closure rate is 13.3%, lower than the restaurant industry average of 22.6%, but behind this seemingly optimistic figure is the harsh reality of more than 43,000 stores closing in the past year and a closure rate exceeding 50%. Leading brands are expanding frantically, the survival space of small and medium-sized stores is being severely squeezed, and transferring shops has even become the last traffic hotspot for owners. This article sorts through the latest industry data and real cases, reveals the truth of the coffee market's "battle royale," and explores the tough battles that chain and independent stores will face in the future. [more…]

The decor of a coffee shop is often an important factor in attracting young consumers, and many community-oriented stores have also adopted influencer-style designs to cater to the market. However, when the appearance of a storefront conflicts with the overall style of the neighborhood it is located in, contradictions arise. A coffee shop near the Big Wild Goose Pagoda scenic area in Xi'an was asked by the urban management department to make rectifications just over ten days after opening because the color of its facade was incompatible with the surrounding Tang-style architecture. In the end, it chose to permanently close due to failure to reach an agreement. The incident sparked heated discussion among netizens: some believed that urban management should not be uniform, while others felt that areas around scenic spots should comply with unified planning. This article will recount the course of the incident and compare it with the successful case of Starbucks in Qingguo Lane, Changzhou, to explore how coffee shops and historic districts can coexist harmoniously. [more…]

Recently, multiple netizens in Inner Mongolia posted that the %Arabica city first store located in Hohhot MIXC will officially cease operations starting December 16. This store only opened in early July this year simultaneously with the shopping mall, making it the brand's first store in Hohhot, and it was 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 a closure notice recently appeared at the entrance. Regular customers felt caught off guard after receiving 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, and its pricing of over 40 yuan is not cost-effective; combined with the mall's fading popularity and reduced foot traffic, the pop-up store's business performance was average, so it is not surprising that it delayed until now before withdrawing. Since the beginning of this year, %Arabica stores in Nanning, Guangzhou, Wuxi, and other places have also closed one after another, continuing operations in the form of Kiosk coffee trucks. Some netizens speculate that after the closure of the Hohhot first store, the brand may return in a new form. [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…]

On November 7, the official Weibo account of Chayan Yuese announced the temporary closure of some stores in areas of Changsha where they had been densely distributed, and the related topic quickly trended on social media. On November 10, the brand further responded, saying that this was already the third round of concentrated temporary store closures this year: staying put for Chinese New Year at the beginning of the year, the resurgence of the pandemic at the end of July, and this latest adjustment. As a tea beverage brand that started in Changsha, Chayan Yuese's move has drawn widespread attention—against the backdrop of repeated pandemic outbreaks and intensifying industry competition, is its proactive contraction after dense store distribution and reassignment of staff to Liuyang, Zhuzhou, Yueyang and other places for research and site selection a stopgap measure to cope with the crisis, or is it building strength for the next round of expansion? This article sorts through the timeline and background of the three store closures and reviews founder Lü Liang's cautious attitude toward brand expansion. [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…]

Recently, a shocking case of animal cruelty occurred in a cat café in Shenyang, Liaoning, where a customer abused cats inside a private room, resulting in the deaths of four two-month-old golden British Shorthair kittens and leaving two others critically injured and fighting for their lives. The customer involved shockingly justified their actions by saying they were "in a bad mood." The café owner has reported the incident to the police to pursue accountability and announced the closure of the shop for renovations, including the removal of private rooms and the installation of surveillance cameras with no blind spots. Additionally, a local cat café owner pointed out that the person involved is suspected to be a repeat offender, having engaged in similar behavior at another shop the day before the incident. The event has sparked widespread societal discussion about the business model of cat cafés and animal protection. [more…]

Cotti Coffee was recently spotted by netizens opening a directly operated store in Gangnam District, Seoul, South Korea, while its 5,000th store in China opened at Sanlitun SOHO in Beijing. From its first store in Fuzhou in October 2022 to its current scale of 5,000 stores, Cotti has raced ahead at a pace of more than 500 stores per month. But behind this rapid expansion, once the 8.8-yuan promotional subsidy stops, cup sales take a hit. So far this year, the number of store closures has reached 332, with 152 new closures in the past 90 days. Some netizens have compared it with Luckin, which has already set up 12 directly operated stores in Singapore. South Korea's coffee market is large, prices are low, choices are plentiful, and stores are densely distributed, so whether foreign brands can gain a foothold remains to be seen. Front Street Coffee follows industry developments and explains for you the challenges behind Cotti's overseas expansion and growth. [more…]

Peet's Coffee's first store in South China—the Shenzhen MixC World branch—officially closed after business hours on July 16 this year, and the original site has been taken over by a chain tea beverage brand from Suzhou. This store, which had been open for nearly four years, once attracted a large number of coffee lovers to check in, and built up a loyal customer base with consistent quality and a comfortable environment. Unexpectedly, no closure notice was posted before the store shut down, and many regular customers were unable to say goodbye in time. At the same time, Peet's stores in Shenzhen, Shanghai and many other places have also quietly withdrawn from shopping malls, sparking speculation about adjustments to its market layout. The brand responded that the Shenzhen MixC World store closed because its lease expired, but the successive closures still leave some consumers worried. [more…]

A Heytea store opened in Rowland Heights, Los Angeles, USA, has recently been confirmed to be permanently closed. The store operated from its opening in September 2024 to the end of business on May 22, 2025, lasting less than a year. As Heytea's first store to shut down in North America, this news has drawn considerable attention and discussion among consumers. Regular customers were surprised by the sudden closure of a milk tea shop that once had long lines, while nearby residents said they had seen it coming. Factors such as the store's remote location, inconvenient parking, rental costs, relatively high drink prices, and intensifying competition from peers are considered possible reasons why the store struggled to survive. This article will review the course of events, consumer feedback, and the possible business challenges behind it, while also offering coffee and tea beverage enthusiasts selected recommendations from the Front Street brand. [more…]

In 2023, China's coffee market size reached 180.6 billion yuan, with chain brands accelerating their expansion—MANNER surpassing 10,000 stores and Luckin and Cotti going overseas—making it seem like a landscape of prosperity. However, in the saved folders on social media platforms, many coffee enthusiasts have discovered that nearly half of the independent coffee shops they once bookmarked now show "closed for business," including many high-quality small shops with thousands of positive reviews. From Beijing, Shanghai, Guangzhou, and Shenzhen to other cities, this phenomenon is spreading. The price wars of chain brands have squeezed the survival space of independent shops, while poor business strategies and a lack of differentiation have also made it difficult for many stores to stay afloat. What kind of preparation and reflection does running a coffee shop actually require? This article takes you deep into the real dilemmas facing independent coffee shops and the ways to break through. [more…]

Sexy Tea, the Changsha tea beverage brand that has captured the hearts of consumers nationwide, is finally set to leave Central China and enter Western China. Following the grand scene of eight-hour queues triggered by its first store in Wuhan at the end of 2020, Sexy Tea officially confirmed it will open in Chongqing this June and has already reached intentions with four shopping malls: Raffles City, Longfor Times Paradise Walk, Longfor North City Paradise Walk, and MixC. From the retreat of its Shenzhen pop-up store, to three waves of store closures in 2021, and then to reflecting on blind expansion and "traveling light to new cities," Sexy Tea's expansion path has been full of twists and turns. Whether this entry into Chongqing can hold the mid-range position amid the chaotic battle of high-end tea drinks cutting prices to seize the market is worth watching. [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…]

The coffee market is undergoing a new round of reshuffling. The number of coffee shops nationwide has approached 200,000, yet the survival cycle of newly opened stores is worrying. A large number of entrepreneurs are pouring into the coffee sector, including both independent coffee shops and franchise stores of chain brands. However, price wars and homogenized competition have caused many stores to bow out quietly within just two or three months. Under the squeeze of giants' low-price strategies, how can independent cafes balance price and distinctiveness? How should franchisees avoid pitfalls? This article provides an in-depth analysis of the reasons behind the wave of coffee shop closures, and, drawing on brand cases such as Front Street Coffee, explores ways to break through. [more…]

Starbucks officially announced recently that its seventh store in Shanghai—the standalone Shikumen building store located at the main entrance of the Xintiandi commercial area, opened after the company entered Shanghai in 2000—will permanently close on December 16. This landmark coffee shop, which has accompanied Shanghai residents for 24 years, was renovated multiple times and upgraded to a Reserve store in 2021, holding countless memories of dates, study sessions, and daily coffee runs for many people. The closure announcement has sparked widespread regret, with netizens speculating that it may be due to failed rent negotiations after the lease expired. Meanwhile, several long-operating Starbucks stores in Shanghai have also closed one after another, prompting sighs that an era is quietly coming to an end. [more…]