Introduction:ofo founder Dai Wei ventured into the U.S. market with the launch of the high-value coffee brand About Time Coffee. However, in less than two years, the brand shrank from five stores to just one. This article delves into the reasons behind its failed expansion, explores why the "burn-money model" is hard to replicate overseas, and revisits the issue of the 1.5 billion yuan in deposits that over 16 million domestic users have yet to reclaim—offering insight into the rise and fall of this cross-border entrepreneurial journey and the lessons it holds.
The second entrepreneurial venture of ofo founder Dai Wei—the American coffee brand About Time Coffee—is facing an operational crisis. It’s reported that the brand once expanded to five locations in New York, but now only one store remains open on Madison Avenue in Manhattan, with the other four having permanently closed.
From rapid expansion to sudden contraction, this journey took less than two years. Initially, About Time Coffee adopted a high-value, low-price strategy, selling coffee priced between $3 and $7—lower than mainstream brands like Starbucks—and introduced innovative beverages that blended tea flavors, such as bubble tea coffee and taro coffee. Its unique packaging featured sealed pull-tab cans, targeting the younger demographic in the U.S.
In terms of marketing strategy, the brand mimicked the early “burn money” approach of China’s Luckin Coffee, attracting customers to download its dedicated app with an offer of “the first five coffees free.” By leveraging an online ordering and payment system, it accumulated user data to deliver personalized discounts and coupons, aiming to boost customer loyalty and repeat purchases.
However, this model, which once worked in the Chinese market, faced severe challenges in the U.S. The American consumer market is highly competitive, with low brand loyalty toward new entrants, and the beverage market is already dominated by several well-established brands—making it difficult for About Time Coffee to break through effectively.
Industry insiders pointed out that “an orange grown in Huainan is an orange, but grown in the north of the Huai River is a trifoliate orange,” an ancient saying that aptly reflects the cultural and commercial adaptation issues in cross-border operations. Even if a product has distinctive features, without a deep understanding of local consumer habits, marketing channels, and supply chain management, success is hard to achieve.
As early as mid-year this year, media reports indicated that About Time Coffee was facing financial difficulties, with all store expansion coming to a halt, raising doubts about its future. Subsequently, the brand’s social media updates stopped in September, and the latest customer-shared photos of purchases date back to last year—indicating that its business activities have nearly ground to a halt.
Dai Wei’s cross-industry attempt ultimately failed to replicate his initial success in the shared bike sector and instead thrust him back into the spotlight of public scrutiny. Many netizens questioned his management capabilities, arguing that he lacks experience in cross-sector operations and that “his success was merely a fluke.”
Alongside the attention given to Dai Wei’s second venture failure, the substantial user deposits owed by his first startup, ofo bikes, also remain in the spotlight. According to statistics, there are still over 16 million users nationwide waiting in line to get their deposits refunded, totaling up to 1.5 billion yuan.
As Dai Wei once again becomes a media focus, “paying back the money” has become the most frequently mentioned keyword among netizens. Many users have expressed disappointment in comments, offering satirical suggestions for his next business ventures—such as “switching to selling Indian curry,” “maybe selling Chinese pancakes and fried dough sticks would be more reliable,” or “better to do livestreaming for quick cash”—reflecting a widespread loss of public confidence.
For the vast number of users who once rode ofo bikes, getting their deposits back is far more important than whether Dai Wei continues to start businesses. Many hope the founder will face the issue squarely, deal with the remaining debts as soon as possible, and offer users a reasonable explanation—rather than repeatedly trying cross-sector projects without learning from past mistakes.
The above content is compiled by CoffeeHunters, a coffee news website.
