Why Are Classic Coffee Shops Closing in Xiamen?

In Xiamen, one of the city’s most popular local coffee spots—Waterfront Cafe’s Park Branch on Xian’an Road—has quietly closed its doors. Despite once drawing weekend crowds and maintaining solid business, the cafe shut down last year. This isn’t an isolated case. Across the city, long-standing independent coffee shops are vanishing, pushed out by soaring rents and shifting market forces.

At least 600 to 700 cafes close in Xiamen every year, with older, well-known brands hit especially hard in recent years. Rents, competition, and changing consumer habits are reshaping the city’s coffee scene.

The Local Coffee Exodus

Waterfront Cafe was once a Xiamen institution, often packed and thriving—especially on weekends. Yet despite its popularity, the Park Branch closed permanently. It wasn’t alone. The brand originally operated four locations in central Xiamen. The first to go was the China Youth Art Gallery branch near Xiamen University, followed by Zhongshan Road and then the Park Branch. Only the Binbei location remains.

The closures weren’t due to poor business. The China Youth Art Gallery branch suffered from consistently low foot traffic. Zhongshan Road was located in a building deemed unsafe. The Park Branch, despite high customer volume, couldn’t handle sudden, steep rent hikes from the landlord.

Industry insiders report that Xiamen hosts around 3,000 cafes, with 600 to 700 going out of business annually. In earlier years, most closures were among independent shops. But recently, established chains like Waterfront, Wojia, and Shangdao have also struggled. Shangdao Cafe, once hugely popular, has closed most of its outlets. Its former locations on Hubin South Road and Lianyue Road have been taken over by independent ventures.

The Global Coffee Invasion

As local brands falter, international coffee chains are expanding aggressively in Xiamen. Starbucks, which opened its largest China outlet in Xiamen back in 2011, now operates around 20 branches across the city—including locations in both the urban core and outlying districts.

Other global players are moving in too. Pacific Coffee has at least three outlets in Xiamen, and Costa Coffee—originating from the UK—is set to debut this year with a location in Xiamen Gaoqi Airport’s T4 terminal. Korean-style cafes are also making inroads. Hollys Cafe claims to operate the world’s largest single cafe location in Xiamen, while Mango Tree and Café Bene have multiple branches. However, Café Bene has already seen one shop close due to competition.

Rent Crisis and the Death of a Coffee Street

The main driver behind the closures? Skyrocketing rents. Once a hub for independent cafes, Binbei Coffee Street has transformed beyond recognition. What was once a concentration of coffee-focused businesses is now home to clothing stores, wine shops, and other retail outlets.

“A small villa here used to rent for 10,000 to 20,000 RMB per month. Now the starting price is 80,000 to 90,000 RMB,” said Bai Zhirong, former president of the Xiamen Coffee Association and current head of the Guanren Business District Association. “Shop owners are waking up to rent bills of 3,000 RMB daily. Many are effectively working for their landlords.”

To adapt, the area has been repositioned as a broader lifestyle district, incorporating Western restaurants, import supermarkets, bars, and hotels to improve overall viability. Bai is now leading efforts to rebrand the area rather than restore it as a coffee haven.

“High rents have forced many local coffee shops to pivot. Lots of cafes now sell food and light meals. They’re no longer just coffee shops,” said one industry expert. “If you don’t transform, you won’t survive.” Waterfront Cafe’s remaining Binbei location, for instance, now hosts wedding events. The city’s coffee scene, the expert added, has entered an era of niche services. Most surviving local brands have carved out unique identities, avoiding direct competition with global giants like Starbucks.

Frequently Asked Questions

How many cafes close in Xiamen each year?

According to industry sources, Xiamen has around 3,000 cafes, with an estimated 600 to 700 closures annually. In recent years, the rate has affected both independent shops and established chains.

Which well-known Xiamen coffee shops have shut down?

Notable closures include multiple branches of Waterfront Cafe (including Zhongshan Road, China Youth Art Gallery, and Park Branch), several Shangdao Cafe locations, and former outlets of Shangdao and Wojia. The Park Branch of Waterfront Cafe on Xian’an Road was especially popular before its closure.

Why are rents in Xiamen so high for cafes?

Rents have surged due to competition from international brands willing to pay premium prices for prime locations. Small villas that once rented for 10,000–20,000 RMB now start at 80,000–90,000 RMB monthly, making it difficult for many cafes to survive without significant turnover or diversified revenue.

Which international coffee chains are expanding in Xiamen?

Starbucks is the most prominent, with around 20 locations across Xiamen. Other entrants include Pacific Coffee (3+ outlets), Costa Coffee (opening soon at Gaoqi Airport T4), and various Korean brands such as Hollys Cafe, Mango Tree, and Café Bene.

How are surviving local cafes adapting?

Many have shifted toward offering food and light meals, or hosting events like weddings. Some, like the remaining Waterfront Cafe Binbei location, have moved away from being solely coffee-focused. The trend is toward niche positioning rather than trying to compete directly with global chains on their terms.

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