Can Cafe Bene Survive Without New Investment?

Cafe Bene creditors didn’t come to ask for advice — they came to get answers. Over 40 franchisees, suppliers, construction firms and commercial property investors recently crowded into the reception area of Beijing’s Zhongqi Building, demanding payment. None of the executives from Zhongqi Investment Group, the parent of Cafe Bene’s largest shareholder, showed up. The group had travelled from across China to confront the company behind their unpaid bills — and were left waiting.

The short answer: Cafe Bene is struggling to survive, with more than 150 million yuan ($15–20 million) in overdue payments from over 40 creditors. Despite claims of new investment and restructuring, no actual funding has materialised, and industry experts doubt any investor will step in without major changes.

What Led to the Cafe Bene Crisis?

The trouble began when Cafe Bene’s Beijing headquarters were abandoned without notice. In response, dozens of people directly affected by unpaid dues — including franchisees who’d put down 350,000–500,000 yuan in reservation fees, equipment suppliers owed up to 5 million yuan, and construction companies with unpaid invoices ranging from 400,000 to 1.45 million yuan — decided to confront the company’s ultimate owner. They converged on Zhongqi Building in Beijing’s Chaoyang District, the office location of Zhongqi Investment Group, the parent company of Zhongqi Asia Pacific, which holds a 50% stake in Cafe Bene.

Many had already tried other routes. One franchisee said he reported the issue to police after failing to recover his deposit earlier in the year. Although the Chaoyang Economic Crime Investigation unit accepted the case, the investigation could take anywhere from seven days to two months — with no clarity on the location of the missing funds. Frustrated by the delay, he joined others to demand answers in person.

Suppliers and builders had equally grim stories. A supplier from Yanjiao said Cafe Bene still owed 5 million yuan for equipment. Seven or eight construction firms were also present, each owed between 400,000 and 1.45 million yuan. This wasn’t their first attempt to get answers: on May 21, a previous meeting with Zhongqi Investment ended with an unsuccessful attempt to sign partial payment agreements with a few creditors.

Who Is Responsible — and What Are They Saying?

Zhongqi Investment Group claimed it had formed a dedicated task force to handle complaints from franchisees, suppliers and contractors. A company representative stated that Cafe Bene was in the final stages of corporate restructuring and that funds were being reallocated to address debts gradually. He blamed some of the financial trouble on suspended projects leading to refund demands. He also said the company had previously paid out over 50 million yuan in early refunds to preserve its brand image, and that frozen accounts and damaged reputation had scared away potential venture capital backers.

However, these explanations didn’t satisfy the creditors. Prior reporting revealed internal strife among Cafe Bene’s stakeholders. Korean shareholders, who originally held a majority stake, had been reducing their investment since last year and had completely pulled out of the Chinese operation — although the Zhongqi representative denied this, claiming the Korean side remains an equity holder. He also disputed claims that Cafe Bene owed 150 million yuan to franchisees, suggesting the original franchise fee was only 350,000 yuan, not 500,000 yuan as widely reported.

Is New Investment on the Way?

Cafe Bene’s crisis unfolded quickly: franchisee dissatisfaction grew, then the company’s president, Qi Dong, resigned, and soon after, reports emerged of a broken cash flow. The chain began courting investors as a lifeline. Qi Dong, before leaving, mentioned that new financing was in the works and that the cash crunch might ease within a month. He remains involved in trying to secure partners for the brand.

Qi also noted that another coffee chain had expressed interest in becoming a strategic partner and was willing to assume part of Cafe Bene’s debt. But industry analysts are sceptical. Traditional businesses like cafes typically attract investment through strong profit margins and steady growth — neither of which Cafe Bene has demonstrated. In fact, its rapid expansion may have contributed to its downfall.

No actual investment has been confirmed. Despite promises of a restructuring and potential funding, no new partner or investor has stepped forward with confirmed capital. The brand’s damaged reputation, ongoing legal disputes and financial chaos continue to deter serious investors.

Frequently Asked Questions

How much money does Cafe Bene owe in total?

Cafe Bene owes an estimated 150 million yuan (approximately $15–20 million) to over 40 creditors, including franchisees, suppliers, and construction firms. Franchisees alone claim 350,000–500,000 yuan each in unpaid reservation fees, while equipment suppliers and builders are owed up to 5 million and 1.45 million yuan respectively.

Did Cafe Bene’s Korean owners withdraw their investment?

Korean shareholders significantly reduced their financial support starting last year and have completely exited the Chinese operation, although a Zhongqi Investment representative has denied a full withdrawal, claiming the Korean side still holds equity.

Has Cafe Bene secured new investment to resolve the crisis?

Despite claims from Cafe Bene executives that new financing and potential strategic partners are interested — including one coffee chain willing to take on part of the debt — no new investor has confirmed funding as of now, and the company remains in financial distress.

Why are creditors protesting at Zhongqi Investment Group?

Creditors, including franchisees, suppliers, and builders, protested at Zhongqi Investment Group’s offices because it is the parent company of Zhongqi Asia Pacific, the majority shareholder (50%) in Cafe Bene. They demanded answers and payments after failed attempts to resolve issues through formal channels.

What went wrong with Cafe Bene’s rapid expansion?

Cafe Bene’s aggressive growth strategy led to financial strain. Rapid store openings, project suspensions, and damaged brand trust created cash flow problems. Early refunds and unpaid bills further weakened its position, scaring off investors despite attempts at restructuring.