Continued Store Closure Trend in Mainland China
According to incomplete statistics from Yi Lan Business, in the fifth week of October 2025, a total of 32 brands in mainland China closed at least 33 stores. Food and beverage outlets continue to be the main force behind closures, with a total of 17 closures, accounting for over fifty percent. Industry insiders point out that offline business formats in mainland China are going through a new round of structural adjustments, and the closure trend is expected to continue.
Statistics released by Yi Lan Business show that last week, there were 17 closures of food and beverage outlets, accounting for 51.51% of the total closures in this round. These closures include several well-known chain brands and specialty shops, such as KFC, Haidilao, Burger King, and Ai Jia Steakhouse.
Since the second half of this year, the phenomenon of concentrated store closures has been frequently seen in several regions including Jiangsu, Shanghai, Henan, Ningxia, and Guangdong.
In Wuxi, several Burger King stores have recently posted closure notices, including a store that had been operating in the Wanda area for 12 years, which has now closed. As the world’s second-largest fast-food burger chain, Burger King entered the Chinese market in 2005. As of the end of June this year, the number of stores in China decreased from 1474 at the end of last year to 1367, a net decrease of 107 stores in six months.
Additionally, the longstanding KFC store in Nanjing Xinjiekou Hongmen has also closed recently, becoming another representative case in this round of closures in the food and beverage industry.
The baking industry is also undergoing a “reshuffling period.” Brands such as 85°C, San Wen Yi Bei, and Wu’s Special Bread have all experienced closures recently.
The last remaining 85°C store in Beijing, Bai Guang Store, which had been operating for 14 years, officially closed on October 31st, marking the brand’s withdrawal from the Beijing market.
Since entering mainland China in 2007, 85°C had over 500 stores at its peak, but currently retains around 400 stores. Recently, the brand has also been closing stores in Hangzhou, Shanghai, Tianjin, Guangdong, and other places.
Zhou Weiping, Chairman and CEO of A1 Snack Research Institute, pointed out that the industry has entered a “period of contraction,” and the market is going through a stage of supply-demand rebalancing where “lack of innovation, price wars, low quality, and high wastage” have become common features in the industry.
From 2024 to the first half of 2025, the rate of closures in the baking industry has not only slowed down but accelerated. Industry insiders believe that behind this trend is a comprehensive competition in supply chain efficiency, consumer insights, and brand resilience.
Coffee shops are also not immune to closures. Last week, Starbucks and DIVE COFFEE SHOP each closed one store.
Following the closure of nearly 20 iconic stores in mainland China, the first Starbucks store in Taiyuan, Shanxi, was permanently closed on November 1st. This store, which opened in 2013, had been in operation for ten years.
Jiang Yi, a columnist for Red Meal Net, believes that although the Chinese catering industry has experienced explosive growth over the past decade, it faces challenges due to its “weak foundation and intense competition.”
“The current difficulties are the result of years of vicious expansion and inefficient competition.”
He points out that the number of restaurants nationwide has exceeded 9 million, but the actual consumer base cannot support such a huge market size, making it difficult for the catering industry’s closure rate to decrease in the short term.
In addition to the food and beverage, baking, and coffee industries, the trend of closures in offline business formats such as supermarkets, shopping malls, sports, education, clothing, and bookstores in mainland China continues to expand. Industry insiders generally believe that in the coming year, mainland China’s offline retail and catering market will enter a period of deep reshuffling, where brand competition will return to efficiency, quality, and innovation itself.