Recently, there has been widespread attention on the news of a large-scale closure of stores by the Chinese chain coffee brand Pacific Coffee.
According to data from the dining data inquiry platform Narrow Lane, since August 2023, in the 14 months leading up to October 15, the number of Pacific Coffee stores in mainland China has decreased by at least 114, leaving only 71 stores remaining.
Similarly, a large number of Pacific Coffee stores in Guangdong have also closed, with at least 10 stores in Zhuhai and Guangzhou recently shutting down.
In response to the rumors of extensive store closures, Pacific Coffee has not denied the reports.
As reported by the Southern Metropolis Daily, a representative from Pacific Coffee responded on October 16, saying that in recent years, the mainland coffee industry has faced significant market competition and challenges, and the adjustment of Pacific Coffee’s store numbers in mainland China is a strategic proactive choice.
Pacific Coffee is one of the largest coffee chain stores in Hong Kong, founded by an American couple in 1992. In 2010, the Chinese state-owned enterprise China Resources Group’s subsidiary China Resources Enterprise acquired 80% of Pacific Coffee’s equity, at which time Pacific Coffee in Hong Kong had almost the same number of stores as Starbucks.
After being included in China Resources’ portfolio, in April 2011, Pacific Coffee entered the mainland China market, opening its first store in Shanghai. By September 2012, the number of Pacific Coffee stores in mainland China had exceeded 100.
Initially entering the mainland market, Pacific Coffee mainly focused on opening stores in the major cities of Beijing, Shanghai, Guangzhou, and Shenzhen, specializing in gourmet coffee with an average price per customer around 30 RMB, targeting business professionals. By 2015, Pacific Coffee had become the second-largest coffee brand in terms of store numbers in mainland China, after Starbucks.
However, following three years of pandemic restrictions, Pacific Coffee began significant store closures starting at the end of 2022. In 2023, there were reports in the mainland media that Pacific Coffee would be sold.
Data from Narrow Lane shows that as of August 21, 2023, Pacific Coffee had only 309 stores nationwide, including 123 in Hong Kong and 185 in mainland China. Based on information from Narrow Lane and public reviews, as of October 16, 2024, Pacific Coffee has at most 71 stores remaining in mainland China, with a decrease of 114 stores in the past 14 months.