Introduction:Recently, Cha Yan Yue Se (Chagee) has密集ly closed around seventy to eighty stores in Changsha, drawing market attention. This marks the brand’s third round of concentrated temporary closures this year, with reasons including repeated COVID-19 outbreaks and strategic brand adjustments. This article details the timeline of the three closure phases, analyzes the brand’s shift from rapid expansion to active contraction, and explores whether this move is a short-term response or a layout for future expansion—helping readers gain a deeper understanding of the brand’s direction.

On the noon of November 7, Cha Yan Yue Se announced via its official Weibo account that it would implement temporary store closures in densely store-populated areas of Changsha, and the topic quickly trended on Weibo. Just three days later, the brand further clarified that this was the third wave of concentrated temporary closures for the year—the first two having occurred during the “stay-put” Chinese New Year period at the beginning of the year and the phase of repeated outbreaks in late July.

As a well-known tea beverage brand originating in Changsha, Cha Yan Yue Se’s move has drawn considerable attention. Under the dual pressures of the ongoing impact of the pandemic and intensified competition in the beverage industry, choosing to actively adjust after a period of rapid expansion raises the question of whether this is a short-term crisis response or preparation for future growth—an issue worthy of deeper discussion.

According to the brand’s official response, the current round of closures is mainly concentrated in specific areas of Changsha where store distribution is dense, affecting approximately seventy to eighty stores. The brand emphasized that this move aims to optimize resource allocation and reserve space for subsequent market strategy adjustments.

Looking back at the first wave of centralized closures this year, which took place around the 2021 Spring Festival. From January to mid-February, the brand phased out the closure of multiple batches of stores, including one, seven, thirty-nine, seven, and one store(s), respectively. Most reopened before the Lantern Festival, with only a few remaining closed until early March. The official reason given was the impact of the “stay-put for the New Year” policy at the beginning of the year.

The second wave occurred in late July, due to a resurgence of the pandemic—particularly on July 29 when the Changsha Municipal Epidemic Prevention Command reported that a confirmed case had visited a Cha Yan Yue Se store. The brand swiftly initiated contingency measures, isolating relevant personnel and closing the involved stores to ensure epidemic prevention safety.

In addition, during the May Day holiday (May 1–5), the brand also temporarily closed 18 stores and redeployed the relevant staff to support stores in popular commercial areas to accommodate changes in holiday foot traffic.

Regarding this third wave of closures, in addition to citing pandemic factors, the brand also revealed that it is preparing for its next phase of regional expansion—including reallocating personnel to other cities in Hunan such as Liuyang, Zhuzhou, and Yueyang to conduct market research and prepare for new store openings.

Cha Yan Yue Se specifically clarified rumors online about “closing stores to relocate,” pointing out that some intermediaries mistakenly posted store closure notices as transfer ads, causing unnecessary confusion for consumers and the brand. The brand emphasized that there is currently no plan to completely withdraw from Changsha.

Speaking of the brand’s development strategy, founder Lü Liang has publicly stated that he is risk-averse, maintains a sense of reverence toward the market, and does not easily expand into unfamiliar market environments. “If you mistake the dividends of the era for your own strength, stepping out may make you the next rapidly fading internet-famous brand.”

This cautious attitude became even more evident after the brand’s pop-up store trial at Shenzhen Wenheyou. In contrast, Haidilao underwent large-scale expansion in 2020, adding over 500 stores and approximately 50,000 employees within a year—but by the end of 2021, it planned to shut down 300 of them, many of which were recently opened outlets, becoming a case study for the industry to reflect on expansion pace.

Facing uncertainties brought by the pandemic and intensified market competition, Cha Yan Yue Se has chosen to shift from dense store deployment to strategic adjustment. Whether it can successfully expand beyond Hunan province and further grow its national presence remains to be seen. This round of store closures and adjustments may be a key step for the brand in seeking balance between stable operations and long-term development.

The above content is compiled by CoffeeHunters, a coffee news website.