Recently, the parent company of the well-known Taiwanese brand “85°C Bakery Cafe,” “Gourmet Master Co. Ltd.,” has announced that due to a sharp drop in sales in the mainland China market by over 20% and continuous losses, the total number of store closures in China this year will exceed 40. Analysts believe that factors such as economic downturn, lack of consumer spending power, industry competition, and political issues have made it challenging for the company to operate in mainland China; however, it is experiencing rapid growth in the United States.
According to reports from Economic Daily News, on October 19th, the 85°C Bakery Cafe’s second store in Beijing, located in Zhichun, officially closed its doors. Currently, only one store on Baiguang Road in Beijing remains open. Ms. Su from the Public Affairs Department of 85°C Bakery Cafe told reporters that the recent closures are part of a strategic adjustment, focusing on optimizing operations.
Cao Panpan, the founder of Beijing Angao Management Consulting Co., and Secretary-General of the World Chinese Catering Association Community Catering, stated that “the current stores are unable to reverse the trend of losses, so stopping losses is the best choice.”
According to the financial report of “Gourmet Master Co. Ltd.” for 2024, 85°C Bakery Cafe’s sales in mainland China dropped to approximately NTD 8.053 billion (around RMB 1.88 billion), a decrease of over 20% compared to the previous year. The company has been experiencing continuous losses in the mainland China market since the second half of 2023. In the first half of this year, the Chinese market saw losses of NTD 200 million (approximately RMB 46 million). According to a Yahoo News report on October 9th, the full-year loss for 2025 is estimated to reach NTD 400 million (roughly RMB 92 million).
In its latest announcement in October, “Gourmet Master Co. Ltd.” stated that the total number of store closures in mainland China for 2025 will exceed 40. Evidently, 85°C Bakery Cafe is addressing its current market challenges in mainland China by closing stores on a large scale.
Public information indicates that 85°C Bakery Cafe is a multinational chain of cafes originating from Taiwan and registered in the Cayman Islands. The brand’s name comes from the belief that coffee tastes best when brewed at 85 degrees Celsius. Other than coffee, tea, and cakes, the stores also offer smoothies, juices, souvenirs, and pastries.
Since opening its first store in Taiwan in 2004, 85°C Bakery Cafe has expanded rapidly. According to media reports, the chain has around 1000 stores in Taiwan, the US, and China, with a total revenue of approximately NTD 19 billion in 2024.
As the birthplace of the brand, Taiwan currently has over 400 stores, providing a stable cash flow.
The company entered Shanghai in 2007, reaching a peak of 589 stores in mainland China in May 2018, contributing to over 70% of the group’s revenue. However, the number of stores has now decreased to over 400. Due to economic weakness and downgrading of consumption habits since 2023, the company reported losses of nearly NTD 400 million for both 2023 and 2024.
Despite struggles in China, the US market has become a highlight for the company. Since opening its first store in California in 2008, 85°C Bakery Cafe has gained market recognition for its affordable pricing (coffee priced at $2.5-3.5) and diverse products (bread, cakes). The Los Angeles store generates monthly revenue of $650,000, surpassing the performance of stores in Taiwan and China. The US revenue rose to NTD 8 billion in 2024, contributing to the overall revenue growth of the group. The first store in New York opened in 2025, and there are plans to reach over 100 stores by 2026.
85°C Bakery Cafe, a renowned brand from Taiwan, has faced losses and store closures in China. Based on various media reports, three primary reasons can be summarized:
Firstly, following the outbreak of the COVID-19 pandemic, domestic economic recession and a collapse in the real estate market have led to a wave of business shutdowns and bankruptcies, reducing the spending power of the general public. Industries like food and bakery have been particularly affected.
Secondly, the bakery industry has a relatively low barrier to entry, making it easy for new brands to enter the market. Some new brands in China, such as “Master Bao” and “Luxi River,” have entered the competition. To survive, these brands are engaging in price wars to attract customers, leading to intense competition. Young consumers tend to seek novelty, which has weakened the attractiveness of traditional bakery brands like 85°C Bakery Cafe.
Additionally, there are political reasons at play. It is an indisputable fact that the Chinese Communist Party suppresses Taiwanese companies operating in mainland China. When a regime targets a company, the company is powerless to respond. 85°C Bakery Cafe reached its peak in China in 2018 but began to decline each year afterward. By 2024, the number of stores in China had decreased to around 400-440.
According to BBC reports, when Taiwanese President Tsai Ing-wen transited through Los Angeles in the US, she visited a local 85°C Bakery Cafe and took photos with staff. This incident led to many mainland China netizens being incited by authorities to boycott 85°C Bakery Cafe. Multiple Chinese mainland online platforms, such as Ele.me, Koubei, Meituan, Dianping, Baidu Waimai, and Baidu Nuomi, were banned from displaying related delivery or reviews, citing reasons like food safety inspections by local government departments.
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