Core Viewpoint - The well-known baking brand "Huan Niu Cake House" announced its closure due to rising costs, intense market competition, and management failures, marking the end of its 12-year journey [1][3]. Company Summary - Founded in 2013, Huan Niu Cake House was a star baking brand in Hangzhou, having raised nearly $10 million in Series A funding in 2022 for store expansion and brand upgrades. At that time, it had opened 30 stores in Hangzhou and planned to expand to cities like Suzhou, Nanjing, and Shanghai [3]. - The brand's rapid expansion and high operational costs led to significant financial strain, with reports indicating that the company was listed as a defendant in a legal case and faced restrictions on high consumption as of May 2025 [11][12]. - Despite a strong product innovation strategy, including the introduction of 150-200 new SKUs annually, the high costs associated with premium ingredients and rapid expansion proved unsustainable in a challenging market environment [16][14]. Industry Summary - The baking market is currently undergoing a significant reshuffle, with several brands facing closures and financial difficulties. Notable examples include the exit of well-known brands like "Dole's Day" and "Slow City Cake" from various markets [17]. - The closure of Huan Niu Cake House reflects broader challenges within the baking industry, where many brands are struggling to maintain profitability amid rising costs and changing consumer preferences [17].