Introduction:The first direct-operated store of HEYTEA in Dalian’s Roosevelt Square has recently closed quietly, drawing market attention. According to data from Jihai Brand Monitoring, although the brand has opened new stores in the past 90 days, its total number of stores has sharply decreased by 161, dropping from 4,410 to 4,265, with an average of about two closures per day. This round of adjustments is not limited to franchised stores—some directly operated outlets that had been in business for many years have also gradually exited due to issues such as rent and contract renewals. This article will delve into the reasons and impacts behind HEYTEA’s store reductions.

Recently, members of the public noticed that the HEYTEA store located in Dalian’s Roosevelt Square has ceased operations, with its original location now replaced by construction hoardings for Pukka Tea and Chow Tai Seng, currently undergoing interior renovations. This store, which opened on May 30, 2020, was HEYTEA’s first direct-operated outlet in Dalian. At the time of its opening, promotional offers such as buy-one-get-one-free attracted large numbers of consumers eager to try it out, with long queues outside that remain vivid in the memories of many regular customers.

However, five years later, this once bustling landmark store has chosen to exit quietly. Many long-time supporters of the store have expressed shock and reluctance, saying things like “It was always crowded whenever I went there—it’s a memory from my high school days” and “I still remember how busy it was on opening day.” On social media, it’s easy to find consumers sharing their memories and regrets from those times.

As for the reason behind this closure, there has been no official response so far, but most speculate that it may be because the brand chose not to renew the lease after it expired, or due to rising rents and operational costs. However, these claims are all based on netizen speculation and have not been confirmed by the brand.

In fact, the closure of the Dalian flagship store is just part of HEYTEA’s recent store adjustments. According to data from Jihai Brand Monitoring, over the past 90 days, while HEYTEA has opened new stores, it has also closed 161 others, reducing its total number of operating stores from 4,410 as of mid-March to the current 4,265. In other words, within just two months, an average of about two HEYTEA stores have disappeared from the market each day.

This wave of store closures is not limited to Dalian. Outlets in multiple cities—including Zibo’s Wangfujing store, Nanchang’s Wanshougong store, and Shenzhen’s MixC World store—have also shut down one after another, and some of these stores were not underperforming. Many consumers have reported that these stores did not announce their closures in advance, and it was usually only when they couldn’t find the store information on the mini program or personally saw the sign being taken down that they realized the store had closed.

Notably, since HEYTEA announced the suspension of its franchise business, the brand has begun to reduce its store scale. Many franchised outlets have quietly ceased operations and can no longer be found in the mini program either. Some consumers believe that this move by the brand helps improve overall quality control, as franchise store management is mostly handled by individual franchisees, and in the past there were numerous customer complaints arising from inconsistent quality.

As a result, guides distinguishing between direct-operated and franchised stores have even emerged online, advising consumers to prioritize direct-operated stores to ensure consistent beverage flavor and service. Many analyses point out that the brand’s closure of some franchises with unstable quality control may be aimed at maintaining a stable standard of product output and enabling more effective official management.

However, this round of adjustments is not only targeting franchised stores. Some direct-operated stores that have been in business for many years have also opted to close or downsize due to practical factors such as rising rents and expiring contracts. Observers believe that this “store closure trend” is like a major filtering process for the brand, gradually weeding out stores that are not conducive to future development and helping the brand adjust and optimize its long-term strategy.

Overall, HEYTEA’s current wave of store reductions—whether driven by cost control, brand management, or market strategy adjustments—will have a certain impact on the brand’s future direction. Whether the brand can maintain product quality and customer experience while streamlining its number of stores will be key to its continued growth.

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