Introduction:The sudden departure of Luckin Coffee from Tsinghua University’s Qingfenyuan Campus store — once so popular that it was hard to get a seat — sparked widespread discussion. What are the operational challenges of the otherwise stable campus market? From expiring contracts and equipment limitations to the low season during winter and summer breaks, this article dissects the real difficulties faced by campus coffee shops, helping brands and entrepreneurs avoid common pitfalls.

University campuses have long been a potential market that coffee brands are eager to tap into, with their steady flow of students and faculty and relatively affordable rents making them attractive to many chains. Yet, even the nationally renowned Luckin once became an overnight sensation at Tsinghua’s Qingfenyuan, where at its peak, customers had to wait nearly an hour for a drink. In the end, however, it quietly pulled out, with all equipment removed, sparking heated discussions among students and faculty. What exactly happened to this store? What hidden high risks and challenges lie behind running a coffee shop on campus?

Luckin’s Qingfenyuan branch quickly won over a large student customer base thanks to its promotional price of 9.9 RMB and strong brand appeal. Even though there were long wait times and the ice machine often ran out of ice in the afternoon — forcing students to opt for hot drinks — the overall feedback was positive, with some students even calling for additional branches to help distribute the customer load. Yet, this popular store suddenly announced an “temporary suspension of business” on April 1st. At first, students thought it was an April Fools’ joke, but soon discovered the shop had been completely emptied, which clearly contradicted the notice posted.

After digging into official Tsinghua University tender information, it was found that the retail space had been reopened for public leasing as early as the end of last year, with clear indication that the original lease would expire in April of this year. It can thus be inferred that the main reason for Luckin’s withdrawal was most likely the natural expiration of the contract, rather than poor business performance. In fact, while campus coffee shops do benefit from a stable customer base and lower rents, they also come with many hidden challenges.

First, the lease periods for campus stores are usually short and not necessarily renewable, meaning brands often have to rebid for the space, adding uncertainty. Additionally, when seeking tenants, universities not only consider student needs but also evaluate whether a brand’s positioning fits the campus environment, potentially setting various operational hurdles. Moreover, the significant drop in customer traffic during winter and summer breaks is a common challenge for campus coffee shops, and some schools even restrict external access, making it difficult for delivery orders to make up for the revenue shortfall.

For many coffee brands, entering a campus may seem like a golden opportunity to reach young consumers, but actual operations are full of variables. Even a highly recognizable brand like Luckin can’t avoid having to leave quietly due to contract expirations or changes in university policy. This serves as a reminder to businesses that while the campus coffee market is appealing, long-term stable operations face multiple tests — including contracts, equipment, and seasonal fluctuations — and success certainly doesn’t happen overnight.

For coffee brands or entrepreneurs planning to enter the campus market, in addition to evaluating foot traffic and rental costs, it is even more crucial to understand the school’s partnership models, leasing flexibility, and strategies for coping with low seasons in advance, in order to improve the chances of long-term success. The blue ocean that is the campus coffee market still requires careful navigation.

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