Core Insights - 85°C is closing its last store in Beijing, with the final location set to shut down on October 31, following the closure of another store on October 19. The closures are attributed to "operational adjustments" [2] - The brand has also closed multiple locations in other cities such as Hangzhou, Shanghai, and Nanjing, with an estimated total of over 40 store closures in mainland China this year, marking the largest adjustment in five years [2] - The parent company, Meishi-KY, is facing financial pressure, reporting a loss of approximately 200 million New Taiwan Dollars (around 46.3 million RMB) in the first half of last year, with projections indicating potential losses exceeding 400 million New Taiwan Dollars (around 92.6 million RMB) by 2025 if operational structures are not adjusted [2] - 85°C was founded in Taiwan in 2003 and entered the mainland market in 2007, gaining popularity with its signature product, the "Caesar Emperor" bread [2] Industry Overview - As of October 24, 85°C operates 652 stores, with 219 in Taiwan and over 400 in mainland China, including 130 in Jiangsu, 118 in Shanghai, and 103 in Fujian [3] - The bakery industry in China has 3,162 brands and over 360,000 stores, but the majority are small-scale, with only 25 stores per 100,000 people [3] - Despite over 76,000 new bakery stores opening in the past year, the net growth is negative at -21,800 stores, indicating that over 90,000 bakery stores have closed [3] - The bakery market in China is undergoing significant transformation due to changing commercial environments and consumer demands, with trends such as the rise of new categories, innovative business models, and a focus on healthier products reshaping the industry [3] - The market size for baked goods in China is projected to reach 611.07 billion RMB in 2024 and 662.15 billion RMB in 2025, reflecting an 8.4% year-on-year growth, with expectations to reach 859.56 billion RMB by 2029 [3]