How 58 Coffee Shop Owners Lost $25,000 in One Year

When 58 strangers pooled $4,300 to open a cozy coffee shop in China, they dreamed of community-driven success. But just 14 months later, the project collapsed with $25,000 in losses — and a clear lesson: more owners don’t always mean better business.

Yes, 58 people raised 290,000 yuan ($43,000) to open 'Many People Coffee Shop' in 2012. But despite initial buzz, the café lost 250,000 yuan ($37,500) in 14 months and shut down. Key issues: low customer turnout from shareholders, no clear leadership, and endless meetings that stalled decisions.

What Went Wrong With the Crowd-Funded Café?

The café launched in May 2013 on Yingchun Pedestrian Street in Changzhou. Fifty-eight shareholders each contributed 5,000 yuan ($750) for one equal share. The founders — including early board member Gangzi — avoided profit-focused backers, aiming instead for a community experiment. They raised 290,000 yuan ($43,000) from 58 people, but that wasn’t enough to build a sustainable model.

Why the Numbers Didn’t Add Up

The café’s monthly break-even point was 20,000 yuan ($3,000) in sales — covering 52,000 yuan ($7,800) annual rent, 7,000 yuan ($1,050) monthly staff wages, and ingredient costs. But it never hit that mark. Shareholder Wanwan said monthly revenue couldn’t even cover payroll. Most shareholders rarely visited, and few actively supported operations beyond buying a dream.

Leadership Vacuum and Decision Paralysis

With 58 equal shareholders and no dominant leader, decision-making stalled. “Almost every weekend we met for three or four hours but couldn’t decide anything,” said shareholder Wanwan. “One problem had too many conflicting voices.” Summer, another shareholder, added: “We were strong at starting, but fell apart because of too many people. No one took charge, so nothing got done.”

What This Means for Group-Run Coffee Shops

The café’s fate reflects broader struggles with crowd-funded businesses. Equal equity, lack of accountability, and endless consensus-building killed momentum. Attempts to adjust operations came too late. By June the following year, the shop closed for good. The team attempted a restructuring, but the damage was done.

Frequently Asked Questions

How many people invested in the Many People Coffee Shop?

Fifty-eight individuals each invested 5,000 yuan (about $750), raising a total of 290,000 yuan (approximately $43,000) to open the café in 2013.

How much money did the coffee shop lose?

The café lost 250,000 yuan (around $37,500) over 14 months of operation before shutting down in June the following year.

What was the monthly break-even sales target?

The café needed to make 20,000 yuan (about $3,000) per month to cover rent, salaries, and operating costs, but it consistently failed to reach that goal.

Why couldn’t the shareholders make decisions?

With 58 equal owners and no clear leader, the group struggled to reach consensus. Meetings often lasted three to four hours without resolution, delaying critical business choices.

Did the shareholders support the café as customers?

Most shareholders rarely visited the shop, and few actively worked to promote or sustain its operations beyond their initial investment.

What eventually happened to the coffee shop?

After trying and failing to turn around losses, the café suspended operations in June the year after opening and attempted a restructuring that ultimately failed.

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