Introduction:Recently, netizens noticed that %Arabica’s Lhasa store, located right across from the Potala Palace, showed a possible closure date of October 28 on third-party platforms, drawing public attention. This outlet, which opened in March 2023 and holds the title of the highest-altitude %Arabica branch in the world, once attracted numerous visitors with its stunning views. In addition to discussing the possible reasons behind the closure rumors, this article also introduces you to the new landscape of Lhasa’s coffee market, including the rise of chain brands like Luckin and locally distinctive cafes.
Recently, while planning a trip to Lhasa, a netizen discovered that %Arabica’s store directly opposite the Potala Palace displayed a message on a third-party platform stating “the merchant may close on October 28,” sparking speculation about whether the shop would shut down. The outlet officially began operations in March 2023 and is the highest-altitude %Arabica branch in the world. With its floor-to-ceiling windows offering breathtaking views of the Potala Palace, it became a must-visit photo spot for many travelers.
Although the drinks at this location are slightly more expensive—about 2 to 3 yuan higher than in other areas due to high logistics costs related to its unique geographical location (for example, a regular Americano costs around 34 yuan), it still attracts many tourists. However, some local netizens mentioned that they had visited the shop just the day before, and everything was operating normally, with no signs of an impending closure.
It is understood that the area where %Arabica’s Lhasa store is located quickly became a popular photo spot on social media due to its exceptional vantage point, and even now, many beautiful photos taken by visitors there can still be found online. However, some analysts believe that although the store sees a steady stream of visitors during the tourist high season, its high pricing and relatively narrow customer base may affect overall revenue performance during the off-season.
Nevertheless, some local residents offer a different perspective, believing that the store still maintains a certain level of foot traffic even in the off-season and is not closing due to poor business performance. Some speculate that the reason for the closure might be that the area is facing redevelopment or even demolition, forcing the brand to withdraw. As of now, %Arabica has not officially announced whether it will reopen at a new location in Lhasa.
Before %Arabica entered Lhasa, the local coffee market was primarily dominated by independent cafes, with few international or national chain brands present. This white building, situated right in front of the Potala Palace, once became a destination for many coffee enthusiasts due to its unique location and brand appeal.
However, as Lhasa’s coffee market becomes increasingly diverse, consumer choices are no longer limited to a single brand. Currently, several chain coffee brands, including Luckin, have entered Lhasa, offering more affordable and varied coffee products. In addition, many independent cafes have introduced innovative drinks that incorporate local characteristics, such as special blends featuring highland barley wine, attracting consumers eager for new experiences.

For many Lhasa residents, although they feel a bit of regret about the closure of this store, they are also happy to see a more diverse range of options emerging in the market. In the future, whether looking for high cost-performance daily coffee or a photo spot with the Potala Palace in the background, consumers will be able to find a cafe in Lhasa that better suits their needs.
Overall, although %Arabica’s Lhasa store has been in operation for only about two years, its presence not only increased Lhasa’s visibility on the international coffee map but also indirectly contributed to the maturation and diversification of the local coffee consumption market. Whether new scenic cafes will emerge in Lhasa in the future is definitely something to keep an eye on.
The above content is compiled by CoffeeHunters, a coffee news website.