Core Viewpoint - The closure of multiple 85°C stores in Hangzhou and other cities highlights the challenges faced by the bakery industry, including rising costs and increased competition, despite a projected market growth in the sector. Company Summary - 85°C, a Taiwanese chain established in 2003, expanded aggressively into mainland China starting in 2007, reaching a peak in 2018 with nearly 100 new stores annually [10] - The company has recently faced a slowdown in growth, with its parent company, Meishi-KY, announcing a strategic adjustment in mainland China due to underperformance in specific regions and stores [12] - The closure of the 85°C store on Qingchun Road in Hangzhou, which had been operating for over a decade, is part of a broader trend, with four stores in Hangzhou closing recently, including the upcoming closure of the Binjiang store on October 15 [3][6] Industry Summary - The bakery industry is experiencing a wave of store closures, with other brands like BreadTalk and Huan Niu Cake House also shutting down multiple locations [12] - Despite the closures, the baking market is projected to grow by 5.2% year-on-year in 2024, reaching a market size of 110.5 billion yuan, indicating ongoing expansion potential [13] - Industry experts suggest that the future of the baking sector will focus on chain operations, product quality, and a blend of online and offline sales strategies, emphasizing health and nutrition [13]