Why Most CoffeeBene Stores in Guangzhou Have Closed

In early 2014, CoffeeBene — once trumpeted as Korea’s largest coffeehouse chain — had expanded rapidly across Guangzhou, opening multiple cafes in high-traffic areas like Yuexiu and Haizhu districts. Just a few years later, many of those locations have gone dark, leaving behind locked doors, "vacancy" signs, and frustrated former employees.

As of mid-2024, seven of the 18 previously listed CoffeeBene outlets in Guangzhou are unreachable by phone, with physical visits confirming most are permanently shuttered. Only two branches — at Grandview Mall and Lefun Plaza — remain in operation.

CoffeeBene’s Rapid Rise and Faster Fall in Guangzhou

CoffeeBene entered the Chinese mainland market in March 2012. Its first Guangzhou shop opened in June 2013 on Yuexiu’s well-known Korean Street (Yuanyuan Lu), followed by a second at Grandview Mall in January 2014. Over the next year, the brand expanded quickly, adding locations on Jianshe Liuhema Road, Lefun Plaza, Changdi Dajie, Zhonghua Plaza, Kaisa YeYe Plaza, Huiying Plaza, and finally Wanguo Plaza in April 2014 — after which expansion stopped abruptly.

At its peak, the CoffeeBene China website listed 18 stores in Guangzhou. Yet when reporters called all listed numbers during business hours, seven were found to be disconnected, invalid, or no longer in service. On-site checks confirmed those seven locations are closed, some with visible signs of abandonment like U-shaped locks and "shop available for lease" posters. For example, the Xihu Road branch had its entrance secured and bore multiple vacancy notices, according to a neighbouring shoe store employee who said it shut in early 2024. Similarly, the Wanguo Plaza and Binjiang East Road cafes are permanently closed.

What Went Wrong: Management and Money

Former employees and industry observers point to several fatal issues. One anonymous ex-staffer reported that wages were unpaid for three months around August and October 2023, with only partial back payments followed by further arrears. They also claimed the company owed money to franchise partners and described internal mismanagement, citing excessive staffing (one regional office allegedly employed over 1,000 people) and extravagance (a single Shanghai trip reportedly cost over ¥100,000).

Industry expert Li Junhan, founder of Dandelion Coffee and co-founder of social app Guzu Tech, argued the bigger issue was profitability. “No matter the franchise model — whether joint investment or financial innovations — it all depends on whether the stores can make money,” he said. “But most CoffeeBene shops were losing money.”

The chain operated four franchise models: wholly owned, entrusted joint venture (the most common), financial innovation, and leased coffee bar. Under the entrusted joint venture model — which made up most locations — CoffeeBene held 51% equity and full managerial control.

Signs of Collapse: Unanswered Calls, Frozen Social Media

Beyond closed doors, other signs of systemic breakdown abound. The official CoffeeBene WeChat accounts for South and Northwest China regions stopped updating on March 8. The brand’s main Weibo account last posted on March 6. Multiple calls to the (South China) franchise hotline went unanswered, and attempts to reach the listed customer service lines were fruitless. One number rang through to a Beijing-based staffer who identified himself as handling investments but refused to comment on closures, management issues, or the alleged withdrawal of Korean backers.

Employees and would-be franchisees also reported inconsistency and operational chaos. A former staffer said no colleagues remained with the brand. One hopeful franchisee cited high upfront fees as a deterrent. Another customer noted inconsistent promotions — such as a Mother’s Day discount offered at one store but not another — and poor service execution, including slow table clearing and unavailable menu items despite online claims. “The set menu says you can get pizza, but they just tell you they don’t have it and suggest bread instead,” wrote one Douban reviewer, suspecting understaffing.

Frequently Asked Questions

How many CoffeeBene stores were there in Guangzhou at its peak?

According to the brand’s China website, there were 18 CoffeeBene outlets in Guangzhou at its peak in 2014.

How many of those stores are still open?

As of the latest reports in 2024, only two CoffeeBene locations in Guangzhou — at Grandview Mall and Lefun Plaza — are confirmed to still be in operation. Seven others have been confirmed closed, with their phone numbers disconnected or invalid.

Why did CoffeeBene stores in Guangzhou close?

Multiple factors contributed: the brand allegedly withheld employee wages, failed to pay some franchise partners, suffered from poor store-level profitability, and experienced alleged withdrawal of Korean investment. Internal issues included high operating costs, overstaffing, and management chaos.

Are any CoffeeBene branches still operating in other Chinese cities?

The article does not provide details on the status of CoffeeBene stores outside Guangzhou. However, there are reports of alleged capital withdrawal by Korean backers in other cities such as Chongqing and Guiyang.

What happened to CoffeeBene’s customer service and social media?

CoffeeBene’s customer service hotlines were unreachable. Its Weibo account last posted on March 6, 2024, and its official WeChat accounts for South and Northwest China stopped updating on March 8, 2024.

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