Sunda Clouded Leopard Coffee Partners with Cafe Bene to Revive Brand

Last week, industry watchers were stunned by reports that Sunda Clouded Leopard Coffee—known for its premium civet coffee—was stepping in to rescue Cafe Bene, a once-booming but now debt-ridden coffee chain in China. The move follows months of financial turmoil at Cafe Bene, including unpaid staff wages, supplier debts, and executive departures. Now, a new alliance aims to turn the brand around.

Sunda Clouded Leopard Coffee, alongside multiple strategic investors, is set to take over Cafe Bene after a month-long audit. The goal is to assume confirmed debts, rebrand the chain, and use Sunda’s franchise experience to revive its growth—while also accelerating Sunda’s own expansion ahead of a planned 2016 U.S. IPO.

How Cafe Bene Collapsed

Once a major player in China’s cafe scene, Cafe Bene began facing serious trouble in late 2015. Reports surfaced of unpaid franchisees and suppliers, cash flow shortages, and employee wage arrears. The situation worsened when its COO, Qi Dong, resigned in May 2016, citing eight months without pay and the withdrawal of financial support from Chinese shareholders. Qi had been brought in to secure funding but admitted defeat. A week later, he revealed that Sunda Clouded Leopard Coffee had stepped in to form a strategic partnership with Cafe Bene.

Why Sunda Clouded Leopard Coffee Is Involved

Sunda Clouded Leopard Coffee operates around 200 stores across major Chinese provinces including Beijing, Shanghai, Guangdong, and Sichuan, and was expanding at a rate of 3–5 locations per month. The company, planning to go public in the U.S. in 2016, had aimed to open 500 stores by 2015—a target it had not yet met. By merging with Cafe Bene, Sunda saw an opportunity to boost its store count rapidly while acquiring an established customer base. Additionally, Cafe Bene’s existing debt could lower Sunda’s overall investment burden, aiding its IPO timeline.

Sunda also has firsthand experience managing a franchise model without venture capital backing, which helped it avoid some of the pitfalls Cafe Bene encountered. According to Sunda representatives, Cafe Bene’s downfall was exacerbated by pressure from investors to expand too quickly, leading to mismanagement after shifting to a franchise model. Sunda believes its long-standing experience with franchising since 2010 positions it well to help Cafe Bene rebuild its brand, resolve internal disputes, and regain market share.

Risks and Internal Challenges

Despite the potential upside, Sunda Clouded Leopard Coffee isn’t without its own issues. The brand, which positions itself in the premium segment, is reportedly facing copycat threats from domestic brands like Musk Cat and Guangzhou Jindao Civet Coffee, which have allegedly imitated its logo. Industry insiders warn that if Sunda doesn’t address these branding challenges, it could face a crisis of its own. One observer noted that while Sunda might help Cafe Bene resolve its financial and managerial issues, solving internal conflicts within Sunda will be the first critical step for the partnership to succeed.

Frequently Asked Questions

What is Sunda Clouded Leopard Coffee?

Sunda Clouded Leopard Coffee is a Chinese coffee chain selling premium civet coffee and operating around 200 stores across multiple provinces. It was planning to expand to 500 locations by 2015 and aimed for a U.S. IPO in 2016, growing at a rate of 3–5 new stores per month.

What happened to Cafe Bene?

Cafe Bene, once a prominent coffee chain in China, faced financial collapse due to unpaid staff wages, supplier debts, and franchisee issues. Its COO resigned in May 2016 after eight months without pay, citing lack of investor support, which led to the chain’s financial crisis.

Why is Sunda Clouded Leopard Coffee taking over Cafe Bene?

Sunda sees an opportunity to accelerate its expansion by acquiring Cafe Bene’s existing store network and customer base. The takeover also allows Sunda to assume Cafe Bene’s confirmed debts and restructure the brand, while reducing its own capital investment needs ahead of a 2016 IPO.

Does Sunda Clouded Leopard Coffee have its own problems?

Yes. Sunda is facing brand imitation issues from other domestic coffee chains that have copied its logo. Industry experts warn that without resolving these threats, Sunda itself could encounter a reputational and legal crisis.

What experience does Sunda have with franchising?

Sunda has managed a franchise model since 2010 without venture capital pressure, allowing it to avoid some of the rapid-growth issues that plagued Cafe Bene after it shifted to a franchise system under investor demands.

What’s the next step for the Cafe Bene takeover?

The partnership will conduct a month-long audit and financial assessment before formally assuming Cafe Bene’s debts. The plan includes rebranding and operational restructuring to rebuild the cafe chain’s market position.

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