China’s economy continues to decline, with private consumption shrinking. In the first half of this year, the well-known Taiwanese chain coffee roasting brand 85°C incurred losses of about 200 million yuan (RMB) in the mainland market. Recently, the company has closed multiple stores in cities such as Hangzhou, Shanghai, Beijing, Tianjin, and Nanjing, with plans to close over 40 stores nationwide by the end of the year.
According to reviews on a popular consumer platform, Beijing currently has only 2 operating 85°C stores. The Huangcun West Station store on Xinghua Street in Beijing has been reported as closed, and several 85°C stores in Shanghai have also been shown as closed.
On October 14th, a reporter from The Paper contacted several 85°C stores in Shanghai, where staff members indicated that some stores did not renew their lease agreements due to rent expiration. The company’s stored value cards can be used at other outlets. An employee at a store in Hangzhou mentioned that October 15th would be its last day of operation. Customers can use their stored value cards at other stores or request a refund, with the refund amount calculated based on the original discount at the time of recharge.
On October 12th, a reporter from Xinhua Daily in Hangzhou found that the signage of 85°C’s Qingchun store had been removed, and the tables and chairs inside had been cleared out. In addition to the Qingchun Road store, several other 85°C stores in Hangzhou, including the Binjiang store (closing on October 15th), Jiangcheng Road store, and the earlier closed Fuyang Yuchangcheng store, have also closed.
According to reports from mainland Chinese media, besides Hangzhou, there have been reports of 85°C store closures in Shanghai, Jiangsu, Tianjin, Guangdong, and other areas. Some 85°C stores in Shanghai are currently listed as either “temporarily closed” or “closed,” including the Guangji store, Zhaoxiang Penglian store, and Shengxia store.
On October 9th, the parent company of 85°C, Gourmet-KY, announced that its board of directors had decided to adjust the operating strategy in the mainland market to optimize the overall operational scale. Specifically, for specific regions and stores with continuously low profitability, the company plans to close their operations.
Recently, Taiwan’s Economic Daily reported that Gourmet-KY had stated that this adjustment is the largest in nearly five years, with an estimated closure of over 40 stores by the end of the year. It is estimated that this accounts for over 10% of the overall mainland store share. As of the end of June, 85°C had a total of 441 stores in mainland China, reducing by 21 stores from the beginning of the year. The closure efforts in the second half of the year are expected to be greater than in the first half, with the total number of closures exceeding 40 stores for the year, significantly higher than in previous years.
In the first half of the year, Gourmet-KY incurred losses of about 200 million yuan in the mainland market. Without adjusting its operational structure, the losses for 2025 are expected to exceed 400 million yuan. The mainland market for Gourmet-KY was profitable in 2021 but turned to losses in the second half of 2023, with losses expanding in 2024 and nearly 400 million yuan in losses last year.
According to the official website of 85°C, the brand was named 85°C in July 2004, and the first flagship store officially opened in Taiwan. In September 2006, the first store in Australia opened, followed by entry into the mainland market in December 2007, with the first store on Weihai Road in Shanghai. As an original “internet-famous” bakery, 85°C was a popular spot for young people, with its signature product, the “Caesar Emperor” bread, being highly sought after. In November 2010, 85°C was listed as Gourmet-KY.
Currently, there are 659 operating 85°C stores, with 219 in Taiwan and approximately 440 in mainland China, including 129 in Jiangsu, 118 in Shanghai, 29 in Guangdong, among others.