CoffeeBene Denies Claims of Financial Mismanagement

CoffeeBene, once a rapidly expanding international coffee chain, has found itself at the center of controversy after multiple Chinese media outlets reported on alleged mismanagement, widespread store closures, unpaid staff wages, and supplier invoices going unsettled. The chain, known for its aggressive growth strategy, faced public scrutiny over whether its business model could sustain such rapid expansion.

No, CoffeeBene has not gone out of business or engaged in widespread closures due to mismanagement. The company’s market director, Ouyang Yue, has directly refuted the claims, stating they stem from 'unfair tactics' used by competitors to damage the brand’s reputation through media channels.

CoffeeBene’s Rapid Expansion and Media Backlash

CoffeeBene was founded in Seoul, South Korea, in 2008 and quickly grew to operate more than 900 locations across South Korea. The brand entered the Chinese market in April 2012 and expanded to nearly 500 stores across 20 major cities including Beijing and Shanghai. Its fast-paced rollout drew attention both for its scale and the questions it raised about long-term sustainability.

The Allegations: What Was Reported

Recent media reports claimed that CoffeeBene was experiencing financial difficulties, citing numerous store closures, alleged deception of franchise partners, and failure to pay employees and suppliers. These reports gained traction after investigative pieces suggested that many new locations were barely breaking even, with some operating at a loss — prompting public doubt about the chain’s viability.

CoffeeBene’s Official Response

In response, CoffeeBene published an official letter on its WeChat account titled 'A Letter to Our Partners,' firmly denying the allegations. The statement accused certain industry competitors of using unethical methods to spread damaging misinformation via the media. Ouyang Yue reiterated this position in an interview with a Beijing business newspaper, confirming that the company’s official statement represented their complete response to the matter.

What This Means for the Brand

While the chain continues to operate hundreds of locations in both South Korea and China, the controversy highlights the risks of rapid international expansion without transparent financial communication. Competitor-driven attacks can significantly impact public trust, especially when expansion strategies rely heavily on franchising and consumer perception.

Frequently Asked Questions

Did CoffeeBene really close hundreds of stores due to financial trouble?

No, the reports of mass store closures due to financial problems have been officially denied by CoffeeBene. The company attributes the rumours to malicious actions by competitors rather than actual business failure.

Who is accusing CoffeeBene of mismanagement?

The accusations originated from various Chinese media reports, but CoffeeBene claims these were orchestrated by unnamed industry rivals using the press to spread false information and harm the brand’s image.

How many stores does CoffeeBene actually operate?

As of the reported period, CoffeeBene had over 900 locations in South Korea and nearly 500 stores across 20 cities in China, including Beijing and Shanghai.

What did CoffeeBene say in its official response?

CoffeeBene released an official letter on WeChat and had its market director, Ouyang Yue, confirm in a media interview that the negative reports were false and part of a campaign by competitors using unethical media tactics.

Is CoffeeBene still in business in China and South Korea?

Yes, despite the allegations, CoffeeBene continues to operate its stores in both countries. The company maintains that operational issues have been exaggerated and misrepresented.