With the economy on the decline and consumer spending decreasing, popular baking brands like UH YUHE, known as the “top-tier in the freshly baked bread sector,” and KUMO KUMO, dubbed the “Hermes of cheesecake world,” are experiencing a shift from long queues at their grand openings to frequent closures.
On August 31st, the UH YUHE store in Daxing Tianjie, Beijing officially closed its doors. Notices were posted advising customers who held cards, vouchers, or memberships to process card transfers or refunds as soon as possible.
According to reports from various Chinese media outlets such as Comprehensive Red Packet Net, Inside Restaurant Owner, and Beijing Business Daily, this closure is not isolated to a single UH YUHE store. In recent times, UH YUHE has been shutting down outlets in multiple cities. Stores in Guangzhou, Chongqing, Shenzhen, Shanghai, Beijing, Chengdu, Nanjing, and other places have been either closed or are in the process of closing down.
Originally hailed as the “top-tier in the freshly baked bread sector,” UH YUHE was founded in 2016 and initially focused on the market in Wuhan. In 2021, UH YUHE launched an expansion plan across provinces, gradually entering core business districts in first-tier cities such as Beijing, Shanghai, and Guangzhou with an average spending of around 40 yuan per person, creating a buzz through product offerings and marketing strategies.
UH YUHE’s model of “one store, one workshop” with fully transparent baking workshops for freshly baked goods has faced challenges. The high investment and higher breakeven point make it vulnerable to fluctuations in foot traffic where costs do not decrease in line, resulting in profits being wiped out instantly when there is a drop in customers.
Data indicates that by the end of 2024, UH YUHE had over 80 stores nationwide. Within just two years, the situation drastically changed with multiple stores closed across various locations.
Industry insiders speculate that the closure of UH YUHE stores may be a result of the brand adjusting poorly performing outlets and minimizing losses promptly.
These operational hardships are not unique to UH YUHE alone but also extend to other premium baking brands like the Chinese trendy baking brand KUMO KUMO. Established in 2019, KUMO KUMO rose to fame with its 39 yuan cheesecake and marketing gimmicks like the “ding-dong, it’s out of the oven,” at its peak operating over 200 stores nationwide. However, as of July 2026, reports indicate that its operational stores have decreased to 47. Over the past year, around 180 stores have closed down, completely pulling out from provinces and cities like Gansu, Sichuan, Shanxi, Tianjin, and Anhui.
From long queues to mass closures, the “golden era of pricey bread” lasted for approximately two years, reflecting the clear impact of economic downturn and consumer spending reduction.
As residents’ income expectations face pressure and consumer behavior leans towards rationality, non-essential high-end spending takes the first hit. Consumers are shifting from the pursuit of “emotional value” and “social currency” through expensive experiences to focusing more on cost-effectiveness in everyday choices. Supermarkets, bakery chains, and affordable options are meeting demand with lower prices and stable supplies, further squeezing the survival space of boutique bakeries.