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 [11] - Recently, 85°C has been closing stores, with four locations in Hangzhou shutting down, including the iconic Qingchun Road store [3][7] - The company's parent, Meishi-KY, announced a strategic shift in response to underperformance in specific regions, indicating a broader trend of store closures in the bakery sector [13] Industry Summary - The bakery industry is experiencing a wave of closures, with notable brands like BreadTalk and others also shutting down locations across various cities [13] - Despite the closures, the baking market is expected to grow by 5.2% in 2024, reaching a market size of 110.5 billion yuan, indicating ongoing expansion potential [14] - Future trends in the baking industry are expected to focus on chain operations, product quality, and a blend of online and offline sales strategies, emphasizing health and nutrition [14]