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About 600-700 coffee shops close in Xiamen annually: survey

Updated: 01 Jun 2015
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Many local coffee shop brands either closed their doors or turned to change their business model by offering food and other services
   
As one of the most popular local coffee shops in Xiamen, Central Park Café had no lack of customers for quite a long time, however, it recently closed its doors after being unable to combat fierce competition from foreign brands along with skyrocketing rents.

Central Park Café is a branch of the Re-café brand which is one of the most influential local coffee shop brands in Xiamen. Currently, there is only one Re-café store left in Xiamen, following the closing of three branch stores near Xiamen University and Zhongshan Road.

It is only the tip of the iceberg of the downturn of local coffee shop brands in Xiamen. There are more than 3,000 coffee shops in Xiamen, and about 600 to 700 coffee shops close annually, according to insiders.

Independent coffee shops were the first to suffer from the impact of foreign brands, and recently chain stores have suffered as well.

Unlike the downturn of the local coffee shops, foreign brands such as Starbucks, Costa and Hollys from America, Britain and Korea have aggressively occupied the coffee shop market share in Xiamen. The Costa brand, from the United Kingdom, is expected to open a store in the T4 building of Xiamen Gaoqi International Airport this year. And Starbucks opened its largest China branch store in Xiamen in 2011 while Hollys, from Korea, opened a store this year which is said to be the largest coffee shop in the world.

According to Mr. Bai Zhirong, former director of the Xiamen Coffee Association, the monthly rent of a villa on Xidi Coffee Street has risen from the previous 10,000 to 20,000 yuan to the current 80,000 to 90,000 yuan.

Many local coffee shop brands either closed their doors or turned to change their business model by offering food and other services.

Several coffee shops on the Xidi Coffee Street have shifted to selling clothes or wine. 
   
SOURCE: WOX Team
 
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