Coffee review

Shangdao Coffee Xiamen closes two more stores, and the franchisee starts a new stove.

Published: 2024-11-03 Author: World Gafei
Last Updated: 2024/11/03, Shangdao Coffee, which used to be a leader in the coffee market, also failed to stop the big waves in the market. In a few days, the two Shangdao Coffee houses located on Hubin South Road and Guogong Road in Xiamen will be officially transformed into Adu. After this change, the total number of Shangdao coffee stores in Xiamen will be reduced from more than 10 in its heyday to 6. At present, there are more than 2600 coffee shops in Xiamen, but only chain brands

Shangdao Coffee, which used to be a leader in the coffee market, also failed to stop the big waves in the market. In a few days, the two Shangdao Coffee houses located on Hubin South Road and Guogong Road in Xiamen will be officially transformed into Adu. After this change, the total number of Shangdao coffee stores in Xiamen will be reduced from more than 10 in its heyday to 6.

At present, there are more than 2600 large and small coffee shops in Xiamen, but chain brands only account for a few. Is the established coffee shop unable to adapt to the ups and downs of the new situation, or is the chain model unable to compete with individual stores that fight alone?

Franchise stores start a new stove.

The magnates of the past are no longer in glory

Recently, the operator of Xiamen Adu Catering Co., Ltd. confirmed that next month, two Shangdao coffee shops located on Hubin South Road and Guogong Road in Xiamen will be officially transformed into Adu.

Adu is a compound restaurant originated in Xiamen, the first store is opened at Lianhua intersection, because of its characteristic decoration style and management characteristics, it is regarded as a "characteristic catering" in Xiamen coffee market. At present, it already has three stores in Xiamen, and one each in Longyan and Zhangzhou. Including the two Shangdao coffee stores that are about to be transformed, the total number of Adu stores will reach 7.

As the saying goes, 30 years east of the river, 30 years west of the river. The rise of Adu seems to be accompanied by the decline of Shangdao coffee in Xiamen. It is reported that during the peak period of Shangdao coffee, the total number of stores in Xiamen reached 13, which is the number one brand in Xiamen coffee market, and there will be only 6 left next month.

The two companies that are about to change into Shangdao Coffee and Ah du are actually the same operator, but there is another reason behind the transformation. "the main reason for breaking away from the Shangdao franchise system is that Adu's own brand has become more and more mature after years of development, and the franchise model has not played a big role in the operation of stores." As a gold digger who once joined the Shangdao coffee brand, Pan Zhenyuan has a deep understanding of the subtle changes of this brand. He said that at first, the main reason for joining Shangdao chain stores was to attach importance to the brand effect of Shangdao Coffee, but in recent years, Shangdao has "insufficient stamina" in brand maintenance, and chain stores have been frequently closed. As franchisees, apart from the brands that use Shangdao Coffee, they have hardly enjoyed the other effects of the chain franchise model, and it is no longer necessary to continue to join. The contract with Shangdao Coffee expires in June, so we can start a new stove.

Used to be the banner of the coffee industry

Rise and fall after the dispute over brands

For many operators in Xiamen coffee market, Shangdao Coffee is not only a banner of Xiamen, but also a banner of the whole Chinese coffee industry in the nearly ten years from the end of 1990s to the new century.

At that time, many management concepts and joining models of Shangdao Coffee became a model for many coffee shop brands to learn from, and a large number of chain brands were born in Xiamen. Shangdao Coffee once brilliant so that many industries in Xiamen are still sighing.

Shangdao Coffee has declined sharply in recent years, or it may be due to the brand battle between the founders of Shangdao Coffee that shook the entire Chinese coffee market. Chen Wenmin, a Taiwanese businessman, founded the "Taiwan Shangdao Coffee" shop in Taiwan and registered the trademark "Shangdao and Picture" in Taiwan's "intellectual property Bureau" in 1986. In 1997, Hainan Shangdao Agricultural Development Co., Ltd. was established. Another Taiwanese businessman, you Chang, was competent chairman and Chen Wenmin served as general manager. Eight shareholders gathered together to open the first Shangdao coffee shop in Hainan. However, due to different ideas, after the separation of shareholders, the island was divided into two, and at the same time began to be accompanied by various disputes.

In 2002, Shangdao, led by you Changsheng and Chen Wenmin, began to fight over brands and appealed to the court. In 2004, the Beijing High Court finally ruled that the trademarks of "Shanghai Shangdao" and "Shangdao and Pictures" were officially revoked.

That is, at a time when the brand lawsuit between you Changsheng and Chen Wenmin is stuck, the total number of Shangdao Coffee stores in Xiamen has reached 13, but after the outcome of this lawsuit, Shangdao Coffee has gone from bad to worse in Xiamen.

Some people in the Xiamen industry still remember that after this lawsuit, the Shangdao coffee shops in Xiamen began to change their tactics one after another. Interestingly, due to the different operators of joining stores, after this wave of updates, the recruitment model of almost every store is also different. "the most basic standardization of the chain model is the unity of the store sign." From the point of view of the Xiamen industry, this has become a watershed for the rise and fall of coffee on Shangdao.

Young people come forward one after another.

The future market still has potential.

With the increasing popularity of the coffee market in Xiamen, the competition in the coffee industry is also rising one after another, constantly pushing through the old and bringing forth the new, and the adjustment of the Shangdao coffee is only one side.

According to the incomplete statistics of Xiamen Baking and Coffee Association, at present, there are more than 2600 coffee shops in Xiamen, including family cafes, and the data is still rising. However, among the old brands of coffee shops in Xiamen, the number of Magia Coffee shops reached seven at its peak, but now it has been reduced to only one, and the number of our coffee shops has also been reduced from more than 10 to three now. These coffee shops were the first echelon brands in Xiamen coffee market during the period of Shangdao brand dispute.

However, with the frequent "slimming" of these established coffee shops, a number of "post-85" new forces continue to pour into the industry. Gong Yongxiang, vice president of Xiamen Bakery and Coffee Association, said that since Starbucks, 85C and other well-known coffee brands entered Xiamen in 2010, coffee shops in Xiamen have sprung up like bamboo shoots after a spring rain. The intervention of young forces will promote the development of Xiamen coffee industry in the direction of fashion, fast consumption and market segmentation.

Therefore, it is still a mystery whether Adu can "save" the two families on the island.

In the Xiamen coffee industry "replacement of the new and the old", the current fierce competition, the heads of most coffee shops appear to be quite calm, "in such changes, to make a good product is the top priority."

Gong Yongxiang believes that in the future, the competition of Xiamen coffee industry will be the competition of product and service quality, which requires operators to have professional coffee knowledge and an excellent team of baristas. Although Xiamen coffee market will continue to experience reshuffle, but the market potential is still huge. In this context, it is necessary to guide big brands with strength and quality to settle in Xiamen, so as to promote the development of coffee culture in Xiamen.

(responsible Editor: Leo)

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