Introduction:Manner Coffee’s first store in Xiamen MixC will close after its lease expires. This nearly three-year-old outlet was the brand’s entry point into the Fujian market. Although the brand has already opened a second store nearby to maintain service, the closure of the original location involves multiple factors such as rent adjustments and commercial district planning. This article analyzes the cost challenges of operating coffee shops in core business districts, as well as the brand’s strategies for balancing expansion and cost control.
Manner Coffee’s first store in Xiamen MixC is about to cease operations. Opened in March 2021, this outlet was not only the brand’s first entry into Xiamen and even the Fujian market, but also built a stable customer base thanks to its spacious and bright storefront and a business model that combines coffee roasting with light meals—particularly appealing to nearby office workers who often chose it for breakfast.
According to insiders, the store’s lease with the mall was renewed for only six months after it expired at the end of last year, and now that renewal period is ending with no plans for further leasing by the brand, closure is inevitable. Notably, Manner has already opened a second MixC store nearby, where consumers can continue to purchase their familiar coffee and baked goods with minimal impact on their daily shopping experience.
For some customers who value the store environment, moving from the larger first store to the smaller second store inevitably raises questions: if the original store was performing adequately, why choose to relocate? A deeper analysis reveals that this decision involves both the mall’s business adjustments and rental costs.
The mall is optimizing its brand mix and plans to introduce other types of businesses to the original space; at the same time, the rent for this location may increase after the lease expires. For Manner, while core business districts can bring significant foot traffic and brand exposure, the accompanying high rents, utilities, and labor costs require a comprehensive assessment of operational efficiency. After weighing the pros and cons, relocating to a more cost-effective location has become a rational decision to optimize costs in a timely manner.
Core business districts have always been a key focus area for coffee brand expansion—international brands such as Starbucks and %Arabica prioritize securing such prime locations to quickly establish market recognition by leveraging the natural high foot traffic and visibility of these areas. However,the “sky-high” rental pressurecannot be ignored: although brands can boost sales in the short term by capitalizing on the location, the fixed costs they must bear in the long term, if exceeding revenue capacity, often lead to closure or downsizing as common risk-control measures.
The relationship between business districts and coffee shops is essentially similar to a leasing partnership, where landlords may request tenants to vacate based on overall planning adjustments. For brands, while setting up in core business districts allows them to enjoy the benefits of high foot traffic, it also exposes them to additional operational uncertainties. This dual nature requires operators to more carefully evaluate the long-term viability when selecting locations.
From an industry trend perspective, expanding the number of stores remains a core strategy for coffee brands to increase market penetration, as Luckin Coffee has demonstrated the value of scale through its tens of thousands of outlets. However, facing continuously rising store-opening costs, brands are gradually shifting toward refined operations, seeking a balance between expansion speed and cost control to avoid resource waste caused by blind expansion.
For consumers, although Manner’s adjustment brings short-term inconvenience, the continued service through the second store ensures basic consumer needs are met; for industry observers, this case reveals the delicate balance between “foot traffic” and “costs” in core business district coffee operations, providing important insights for subsequent brand location strategies.
The above content is compiled by CoffeeHunters, a coffee news website.
