Caffè Bene Trust Crisis: Guangzhou Stores Still Open

Caffè Bene, once hailed as Korea’s top coffeehouse chain, is now entangled in a deepening trust crisis after its CEO resigned and allegations of unpaid salaries, store shutdowns, and internal conflict emerged. The situation raises urgent questions for customers and industry watchers: what’s really happening, which stores are affected, and why did a rapidly growing brand suddenly falter?

As of now, some Caffè Bene locations in Guangzhou—including those in Teemall and Lefeng Plaza —are still operating normally, though others have closed. The brand’s Chinese stores once numbered close to 600, second only to Starbucks in the country.

What Sparked the Caffè Bene Crisis?

The trouble became public on May 25, when the resignation letter of then-CEO Qi Dong was posted online. In the letter, Qi stated he would step down effective June 1. He revealed he had not been paid in eight months and accused the Chinese shareholders of halting funding support three months earlier. Qi also wrote that operational mismanagement had left the company cash-strapped. His secretary, Ms. Park, later confirmed the letter’s authenticity to media.

How Big Was Caffè Bene in China?

Caffè Bene entered the Chinese market in March 2012 through a joint venture with a Chinese partner—not as a purely Korean brand. The chain grew quickly, expanding by hundreds of stores annually. By January 2016, when Qi Dong took over as CEO, the company had nearly 600 locations in China, making it the second-largest coffee chain behind Starbucks, which had been in China for nearly 20 years. Qi had projected reaching 3,500 stores and ¥5 billion in revenue by 2016.

Why Hasn’t the Korean Parent Company Intervened?

Caffè Bene China was operated by a Sino-Korean joint venture, Caffè Bene Management Co., Ltd. After rapid expansion, problems emerged by late 2015, with reports of unpaid wages, vendor debts, and shuttered stores. Despite the severity of these issues, the South Korean parent company, Caffe bene Co., Ltd., has not publicly offered any financial assistance or support to its Chinese operations.

What’s the Current Status in Guangzhou?

In Guangzhou, several Caffè Bene stores remain open, including branches at Teemall, Lefeng Plaza, and Tonghe. However, some outlets have seen reduced foot traffic, and online reviews mention high prices as a concern. While these locations are still serving customers, the overall brand stability remains uncertain.

Frequently Asked Questions

Has Caffè Bene officially gone out of business in China?

No, Caffè Bene has not announced a full closure in China. While many stores have shut down and the company faces serious financial and management issues, some locations—particularly in Guangzhou like those in Teemall and Lefeng Plaza—are still operating normally.

Why did the CEO of Caffè Bene resign?

Former CEO Qi Dong resigned on June 1, 2016, citing eight months of unpaid salary and a lack of operational funding due to the Chinese shareholders stopping financial support three months prior. He also blamed poor financial management for the chain’s cash flow problems.

Is Caffè Bene getting help from its Korean headquarters?

No. The South Korean parent company, Caffe bene Co., Ltd., has not released any public statement or provided financial assistance to address the ongoing crisis in its Chinese joint venture operations.

Are any Caffè Bene stores in Guangzhou still open?

Yes. Stores such as those in Teemall , Lefeng Plaza , and Tonghe are reportedly still operating. However, some have seen fewer customers, and online feedback includes complaints about pricing.

How many stores did Caffè Bene have in China before the crisis?

By January 2016, Caffè Bene had nearly 600 stores in China, making it the second-largest coffee chain in the country behind Starbucks, which had been operating for almost 20 years.