Former Leading Chain Up Island Closes More Stores in Xiamen

Once a dominant force in China’s early coffee shop scene, Up Island Coffee has seen better days. In Xiamen, its presence is shrinking fast: two more outlets, in Hubin South Road and Gongdelu, will soon reopen as Adu, a local multi-concept restaurant. This reduces Up Island’s footprint in the city from a peak of over ten to just six locations. The move reflects broader shifts in the city’s booming but competitive coffee scene.

In short: Two Up Island Coffee shops in Xiamen are converting to Adu brand locations, leaving Up Island with only six stores in the city—down from a high of 13. The once-leading chain has steadily lost ground to independent and newer brands.

The Shift: Franchisees Walk Away

The transformation is led by Pan Zhenyuan, who previously operated the two Up Island locations under franchise. With his contract set to expire in June, he chose not to renew. Instead, the outlets will be rebranded as Adu. Pan explained that the Up Island brand had become less effective for business, with weakened brand maintenance and little support from the franchisor. Though he valued the brand initially, he saw no reason to stay with it as it declined.

Rise and Fall of a Coffee Giant

Up Island Coffee was once a flagship brand across China. In its heyday, it had 13 outlets in Xiamen alone and was considered a model for the domestic coffee industry. Many local chains adopted its management style and franchise approach. But its fortunes changed after a bitter legal battle over the "Up Island" trademark between its Taiwanese founders, Chen Wenmin and You Changsheng. The dispute split the brand and led to inconsistent branding and weakening identity among franchisees.

By the time the Beijing High Court ruled against the "Shanghai Up Island" and "Up Island and Image" trademarks in 2004, the damage was done. Although Xiamen Up Island locations peaked at 13 stores, inconsistency in signage—each franchisee updated their stores differently after the legal battles—undermined the chain’s visual unity. Industry observers in Xiamen cite the loss of standardised branding, especially store signs, as a critical turning point.

Xiamen’s Evolving Coffee Market

Today, Xiamen has over 2,600 coffee venues, but few are part of major chains. Other once-prominent brands like Makiya Coffee and Wocafe have also shrunk—from seven and over ten stores respectively, down to just one and three. Yet the market is far from stagnant. New entrants, especially those born after 1985, continue to join the industry. According to Gong Yongxiang, vice president of the Xiamen Baking and Coffee Association, the arrival of global brands like Starbucks and 85°C around 2010 helped spark a wave of innovation. These younger operators are pushing the market toward more fashionable, fast-moving, and segmented offerings.

Adu, the brand taking over the former Up Island locations, is a locally grown outfit known for its distinctive decor and hybrid food-and-beverage model. It already operates three stores in Xiamen, plus one each in Longyan and Zhangzhou. With the addition of the two new locations, Adu will have a total of seven outlets.

Frequently Asked Questions

Why are two Up Island Coffee shops in Xiamen becoming Adu locations?

The two outlets, located on Hubin South Road and Gongdelu, are being rebranded as Adu because their franchise agreement with Up Island Coffee is ending. The owner, Pan Zhenyuan, chose not to renew due to the declining value of the Up Island brand and lack of support from the franchisor, opting instead to operate under the Adu name, which he says has a stronger and more consistent identity.

How many Up Island Coffee stores are left in Xiamen?

After the conversion of the two locations, Up Island Coffee will have six stores remaining in Xiamen. At its peak, the chain had over ten stores in the city, and as many as 13 during its strongest period.

What happened to the Up Island Coffee brand?

The brand suffered after a legal dispute between its co-founders, Chen Wenmin and You Changsheng, over the “Up Island” trademark. The lawsuit, which started in the early 2000s and concluded in 2004 with a ruling against Up Island’s trademarks, led to brand fragmentation, inconsistent store signage, and weakened franchise support, contributing to its decline in Xiamen and beyond.

What other coffee brands have shrunk in Xiamen?

Makiya Coffee, once operating seven stores, now has only one, while Wocafe has reduced from over ten locations to three. Both were once leading coffee chains in Xiamen during the same era as Up Island Coffee.

What is Adu, and how many locations will it have?

Adu is a locally based multi-concept restaurant in Xiamen known for its unique interior design and food-and-beverage offerings. It currently runs three stores in Xiamen, plus one each in Longyan and Zhangzhou. With the addition of the two former Up Island locations, Adu will operate a total of seven outlets.

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