Can a Coffee Shop With 100 Owners Succeed?

When two young entrepreneurs in Dalian put out a call for people to crowdfund a coffee shop together, dozens answered. The idea was simple: pool resources, share ownership, and build a community-run café. But with 92 initial “co-owners” and rising to 111, could a coffee shop really function with that many stakeholders—and stay open?

Yes, it can—at least for now. Six months in, the café isn’t making a profit but isn’t losing money either. Monthly expenses are around $4,000, and income roughly matches that, keeping the business afloat without turning a profit.

What Happened When 92 People Crowdfunded a Coffee Shop

In December 2022, Wang Lianjun and Sun Xiaolong launched a crowdfunding campaign to open a collectively owned coffee shop in Dalian. Their goal was to raise 1.5 million RMB (about $210,000) via 500 shares, but by December 24, they had only secured 130 shares (roughly 400,000 RMB or $56,000). Still, they found an affordable space and opened with 92 co-owners. By mid-2023, that number grew to 111.

The group managed to open largely because they found a cost-effective location. Yet despite the initial enthusiasm, the financial reality quickly set in. “We’re operating at break-even,” said Wang. “The shop isn’t profitable, but it’s also not at risk of closing.”

How the Collective Actually Runs the Business

With over 100 owners, decision-making could have been a nightmare. In the early days, Wang and a core group held frequent meetings—sometimes with 40 people in attendance—to vote on major decisions like location, name, rent, staffing, and pricing. “Those weekends were intense,” Wang recalled. “But there was a strong sense of accomplishment.”

Since opening, however, formal “general meetings” have only happened twice—once with about ten attendees, the other with around twenty. Most decisions are now handled by a rotating group of around 20 core participants who are regularly involved in operations. “You can’t wait for 100 people to vote on every issue,” Wang explained. “If we tried, we couldn’t even buy a new mop in time.”

Why Raising Prices Was Necessary—And Controversial

The café initially offered coffee, juice, and desserts. As foot traffic increased, the menu expanded to include soft drinks, sandwiches, fries, and even homemade pizza. Those additions required new equipment and ingredients, increasing costs. Meanwhile, the original 500,000 RMB fundraising target was never met, and the shop is still carrying around 800,000 RMB (about $112,000) in debt, including loans from some co-owners.

To address the financial strain, the management decided—without a full shareholder vote—to raise prices by 15%. “We analyzed customer turnover and concluded the price hike wouldn’t drive people away,” Wang said. While some co-owners disagreed, the change moved forward because the leadership team determined it was necessary for sustainability.

Frequently Asked Questions

How many co-owners does the Dalian coffee shop have?

The coffee shop started with 92 co-owners and has since grown to 111. One person left but transferred their shares rather than withdrawing from the project entirely.

Is the coffee shop making a profit?

No, the café is not profitable. Monthly expenses total around $4,000, which is roughly balanced by income. The business is surviving but not growing financially.

How are decisions made with so many owners?

Most decisions are handled by a core group of about 20 active co-owners. Full shareholder meetings have only occurred twice since opening. The group avoids involving all 100+ owners in every decision to maintain operational efficiency.

Why did the coffee shop raise prices by 15%?

The price increase was implemented to cover rising costs from menu expansion and unpaid operational expenses. Management determined through analysis that the hike would not significantly impact customer traffic.

What happens to the coffee shop after two years?

The original business plan set a two-year operational cycle. After that period, the co-owners will decide whether to distribute profits, continue operating, or dissolve the business.

Do the co-owners help run the café?

Most co-owners are not involved in daily operations, but some contribute in small ways, such as covering shifts or helping with minor maintenance tasks. Ownership is primarily financial, not operational.

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