Recently, another new tea drink brand in China has seen a large-scale closure of its stores.
According to a report from the “Daily Economic News” on the 10th, the new tea drink brand positioned at a price range of 15 yuan, called Shu Yi Shao Xian Cao, has been exposed to a massive closure of stores. Even many franchisees have reported stagnant sales of second-hand equipment.
According to data from the chain store monitoring platform Jihai Brand Monitoring, in the past 90 days, the number of new Shu Yi Shao Xian Cao stores opened was 496, while the number of closed stores reached 1605.
Data from Tianyancha shows that on September 3, 2024, there were changes in the registered capital and shareholders of Sichuan Shu Yi Catering Management Co., Ltd., the company to which the Shu Yi Shao Xian Cao brand belongs. After the changes, the registered capital decreased by 5.67%, the number of investors decreased by 3, and the legal representative remained the founder Wang Bin.
Founded in 2007, Shu Yi Shao Xian Cao focuses on the burnt grass category. In 2018, Shu Yi Shao Xian Cao put forward the slogan “Half cup is all ingredients”, emphasizing value for money, which was popular at the time. In September 2021, Shu Yi Shao Xian Cao announced that the number of its stores exceeded 7000. In the industry, the number of Shu Yi Shao Xian Cao stores ranks second only to HEYTEA.
According to Narrow Gate Food Eye data, as of August 2, 2024, the number of Shu Yi Shao Xian Cao’s operating stores decreased to 5965.
In 2024, the competition in the new tea drink industry has entered a “cut-throat” stage.
Industry insiders are not optimistic about the offline store opening situation in the new tea drink industry. Li Chengdong, founder of Dolphin Society, said, “This year, the new tea drink industry may close 20% to 30% of its stores.”