Introduction:In early 2024, multiple %Arabica stores in the Philippines closed without warning, and their official Instagram account even showed as deactivated, sparking speculation about the brand’s market withdrawal. In reality, this turmoil stemmed from the termination of the contract with local partner Allue Hortaleza, and a new agent has been secured to relaunch operations within the year. This article details the full story of the incident, including the reasons for the store closures, the progress on the hacked account, and the subsequent moves of the former partner, helping readers clarify misunderstandings and stay updated on the brand’s latest developments.
On January 30, consumers in the Philippines were surprised to find that %Arabica stores in locations such as Taguig City had shut down without notice. The once bustling storefronts suddenly had their gates pulled down, and even more strangely, the brand’s official Instagram account “arabica.journal” also appeared to have been deactivated. This series of sudden events sparked widespread discussion among local netizens, with many speculating: Could it be that %Arabica is pulling out of the Philippine market?
In response to public concerns, %Arabica issued an official statement on Facebook on January 31, revealing the truth: the brand had terminated its partnership with its former Philippine partner, Allue Hortaleza, and as a result, the existing stores had to be temporarily closed. However, %Arabica has already found a new agent and promised to “resume operations within this year,” with future store locations being adjusted to better suit local needs.
Regarding the issue of the official Instagram account being deactivated, %Arabica explained that it had been hacked, and the team is actively working with the platform to restore access as soon as possible. As of press time, the account has returned to normal updates. One netizen commented: “Even if you’re closing temporarily, you should at least give us a heads-up… We thought the brand was pulling out of the Philippines 😅” %Arabica responded by saying: “We didn’t expect the former partner to suddenly suspend operations either… They revealed plans to open their own brand coffee shop at the original location.”
On February 1, the former partner Allue Hortaleza also posted a statement on Instagram, confirming the end of the partnership but emphasizing their commitment to continuing to provide consumers with “high-quality coffee,” demonstrating their dedication to product and service quality.
Despite both parties having provided explanations, many netizens continue to analyze the underlying reasons. Some believe that after two years of the pandemic, the Philippine economy is gradually recovering, foot traffic in coffee shops is returning, and %Arabica, as a popular local photo spot with consistently good coffee, should have had optimistic prospects for continued operations. The timing of the split seems less than ideal. Others speculate that the former partner may have seen the business rebounding and wanted to “strike out on their own”—after all, without %Arabica, there’s no need to share profits, leaving more room for higher earnings. However, whether their independently operated coffee shops can maintain the same standards without the backing of a well-known brand remains to be seen, and future performance is worth continued observation.
The above content is compiled by CoffeeHunters, a coffee news website.
