Less than a year! The first U.S. store of Xicha is permanently closed!

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Recently, some American netizens successively posted on social media that Xi Tea's store in Roland Heights, Los Angeles, USA, has been permanently closed.

According to local citizens, the Xicha Luolangang store will officially open to the public in September 2024. In March this year, the store was temporarily suspended and resumed operations after closing the store for a period of time. But to the surprise of regular customers, when they passed by the store, a bilingual Chinese and English notice was posted on the glass door announcing that the store would close its business on May 22.

Many people have the impression that many fans went to check in to visit the store at the beginning of its opening, and there was a long line at the door. Moreover, due to the gathering of Chinese in Rowland Heights, the in-room food and takeout business of this Xi tea store is not bad."I went to Rowland Heights twice in February, and there were many people" and "Every time I went there, there were a crowd of people."

Therefore, when a milk tea shop with a good business suddenly posted a closure notice and disappeared from Goole Map after less than a year of operation, fans who originally thought of buying a cup of milk tea were surprised and couldn't help but sigh that this should be the first North American store they knew of. Tea closed.

However, surrounding citizens seem to have a premonition about the closure of Xicha Luolangang Store. They explained that compared with several other stores opened by the brand in Los Angeles, the location of the Luolangang store is actually a bit remote and difficult to find.

Moreover, many customers who come here to buy drinks choose to drive, but the square where the store is located provides a limited number of parking spaces for consumers, which is inconvenient for customers to park their cars. Therefore, some people admit that they are reluctant to stop because of the trouble of parking."The main reason is that the location is too bad,""I couldn't find a parking space below last time I wanted to go, so I left","I didn't choose a good place." It's not convenient to buy milk tea at all,"" Parking is inconvenient, and I never go every time I pass by."

In addition to the unlikable location of the store, another netizen revealed that the reason for the closure of the store, which had only been open for 9 months, may be related to venue rent and the unsatisfactory price of drinks. Previously, some users shared the approximate cost of opening a wedding tea store in the United States, saying that franchisees not only have to bear the store rent, labor, materials and other expenses, but also have to pay service fees such as franchise fees and deposits to the brand side. The overall cost of opening a store is high.

Therefore, in order to maintain profitability, the unit price of Xicha stores in North America is slightly higher than that in China. Judging from the menu of Luolangang store when it opened, the tea sold in the store was basically US$6 to US$10, which is equivalent to a cup of milk tea costing approximately RMB 43 to 72. This price may be difficult to accept for users who are used to paying more than 20 yuan for a cup of milk tea in China, so some people admit that they only checked out once and stopped purchasing again.

In addition, as tea brands such as Bawang Tea Ji, Diandian, and Jasmine Milk White have successively opened stores overseas, the choices of local milk tea consumers have increased, and the competitive pressure that Xi Tea has to face in North America has increased significantly. Therefore, in the eyes of some people, considering factors such as market layout and operating costs, it is reasonable that this Xi tea store lost in fierce competition from its peers.

Picture from: Xiaohongshu

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