How Two Shangdao Cafés Joined Ado Amid Industry Shifts

In Xiamen, once-bustling coffee chains like Shangdao are quietly shutting doors. Meanwhile, newer players such as Lao Sai Mobile Coffee are opening dozens of outlets. What’s pushing long-standing cafés to downsize—and what’s fueling the rapid rise of newcomers? The answers lie in rent hikes, shifting consumer tastes, and fast but sometimes shaky expansion.

Two Shangdao franchise locations in Xiamen will be acquired and rebranded by Ado next month, reducing the Shangdao network by two more stores. This follows years of decline for established brands like Makiya Duo, which shrank from seven to one shop, and Wo Jia Coffee, down from over ten to just three.

The Decline of Established Coffee Brands

Xiamen’s traditional coffee scene is contracting. Well-known brands such as Makiya Duo, Wo Jia Coffee, and Shangdao have all seen multiple store closures in recent years. Once common in shopping areas and business districts, many of these cafés have disappeared or been consolidated. The trend reflects broader struggles among legacy coffee operators.

Why Old Brands Are Shrinking: Rent and Mindset

High commercial rents are a major factor. One well-known café on Hexiang West Road closed after its rent tripled. Prime locations with large floor spaces can cost over ¥100,000 per month in rent alone, plus around ¥25,000 for staff salaries, utilities, and supplies—pushing monthly fixed costs beyond ¥250,000. To break even, such a shop needs ¥10,000 in daily revenue, a target few manage.

Beyond financial pressure, outdated business models are losing relevance. Younger consumers, especially those born in the 1980s and 1990s, prefer modern, fast-paced coffee shops over traditional, formal establishments. Many older brands have been slow to adapt their offerings or service styles.

New Entrants: Rapid Growth and Hidden Risks

While old names shrink, new coffee businesses are expanding quickly. Lao Sai Mobile Coffee has launched nearly 80 outlets in the past two years, mostly through franchising. Beyond chains, independent cafés have proliferated. Media reports suggest Xiamen Island now hosts over 2,000 coffee shops, most opened since 2010.

However, not all growth is sustainable. Newcomers often cluster in the same neighborhoods—in some areas, three cafés may sit within a 100-meter radius. Fast expansion can lead to oversupply and thin margins. Many new single-owner cafés are run by young entrepreneurs in their late 20s or 30s, who open shops with personal savings of just over ¥100,000. Without professional management or operational experience, a large share of these businesses struggle: industry sources indicate only 30% to 40% of small standalone cafés turn a profit.

What the Future Holds for Xiamen’s Coffee Market

The local coffee industry is poised for a shakeout, but also for growth. “The market may trend toward more accessible, ‘everyday’ coffee,” said Gong Yongxiang, vice president of the Xiamen Baking and Coffee Association. She advocates for attracting established, quality-driven brands to raise standards and foster coffee culture. Training skilled personnel and improving both product quality and brand identity will be essential for long-term success.

Frequently Asked Questions

Which two Shangdao coffee shops are being acquired by Ado?

Two franchise locations of the Shangdao coffee chain in Xiamen will be acquired by Ado next month and subsequently rebranded. The exact addresses or names of these locations were not disclosed in the report.

Why are traditional coffee shops in Xiamen closing?

Traditional coffee shops are closing due to a combination of soaring commercial rents—some locations saw rent triple—and business models that no longer appeal to younger consumers. Many struggle to maintain the ¥10,000 daily turnover needed to cover monthly costs exceeding ¥250,000.

How many stores did Makiya Duo and Wo Jia Coffee have at their peak?

Makiya Duo once had seven stores but was reduced to just one. Wo Jia Coffee peaked at over ten locations before shrinking to three.

How fast is Lao Sai Mobile Coffee expanding?

Lao Sai Mobile Coffee has opened nearly 80 new outlets in the past two years, the majority through franchising, making it one of the fastest-growing coffee chains in Xiamen.

What percentage of small standalone coffee shops in Xiamen are profitable?

According to industry sources, only around 30% to 40% of small, independently operated coffee shops in Xiamen are currently profitable.

How many coffee shops are there on Xiamen Island?

There are over 2,000 coffee shops on Xiamen Island, with the majority having opened since 2010, according to media reports.

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