Stores are closed one after another! Well-known coffee chains responded to →

Recently, the chain coffee brand Pacific Coffee has been exposed to a large number of store closures. According to third-party platform data, since August 2023, in the 14 months to October 15, the number of Pacific Coffee's stores in mainland China has decreased by at least 114, leaving only 71 stores in mainland China.

Source: Pacific Coffee Mini Program

In response to the rumors of a large number of store closures, Pacific Coffee did not deny it. "In recent years, the mainland coffee industry has encountered great market competition and challenges, and the adjustment of the number of Pacific Coffee's mainland stores is a strategic initiative, and the existing stores will continue to deepen the market, improve the quality of operation, and continue to provide consumers with high-quality services and products." The relevant person in charge of Pacific Coffee responded on the 16th.

In August last year, tea brand Ningji revealed its intention to acquire Pacific Coffee. In this regard, the relevant person in charge of Pacific Coffee said: "In response to the previous market rumors, Pacific Coffee has no intention of selling. ”

According to the public information on the official website, Pacific Coffee originated in Hong Kong, China, the first store opened in 1992, and in 2010, China Resources Group's member company China Resources Enterprise acquired 80% of Pacific Coffee's equity for HK$327 million in cash, when the number of Pacific Coffee's stores in Hong Kong was almost the same as Starbucks.

After being merged into the territory of China Resources, Pacific Coffee entered the Chinese mainland market in April 2011 and opened its first store in Shanghai, and in September 2012, the number of Pacific Coffee stores in the mainland exceeded 100.

At the beginning of entering the mainland, Pacific Coffee mainly concentrated in Beijing, Shanghai, Guangzhou and Shenzhen to open stores, focusing on specialty coffee, the unit price of products is around 30 yuan, and the target consumer group is business people, by 2015, Pacific Coffee has become the coffee brand second only to Starbucks in the number of stores in the mainland.

Source: Pacific Coffee official website

In the past few years, with the continuous emergence of domestic coffee brands, the continuous entry of foreign coffee brands into the Chinese market, and the continuous reduction of the price of freshly ground coffee, the development momentum of Pacific Coffee is significantly less than at the beginning. Starbucks China currently has more than 7,000 stores, more than 70 times the size of Pacific Coffee today.

Since the end of 2022, Pacific Coffee has been exposed to significant store closures. According to Pacific Coffee's official data, as of December 2016, the number of Pacific Coffee stores worldwide was 457. According to the third-party platform, as of August 21, 2023, Pacific Coffee has only 309 stores in the country, of which 123 are in Hong Kong and 185 are in the mainland.

According to the analysis of industry insiders, Pacific Coffee has relatively few stores, and there is no way to form a scale effect, so it is relatively weak in the supply chain. In addition, in terms of price and product innovation, Pacific Coffee's advantages are limited. In a store in Guangzhou, the cheapest drink of all its drinks is 27 yuan, generally in the range of 30~35 yuan.

At present, through the Pacific Coffee Mini Program, it can be found that Pacific Coffee has 5 stores in operation, 3 stores in Shanghai, 3 stores in Guangzhou, and 9 stores in Shenzhen.

Source: China Economic Net Editor: Ruowen Editor: Ruowen Review: Lai Ting

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