Core Viewpoint - The closure of 85°C stores in Jinan reflects a broader trend of established bakery brands facing challenges, including rising costs, brand aging, and increased competition from new entrants in the market [2][4][5]. Group 1: Company-Specific Developments - 85°C has announced the closure of its store on Shanshi East Road in Jinan, leaving only one remaining store in the city [2]. - The closure is attributed to high rent and insufficient profits, despite the store having operated for 13 years and having a loyal customer base [2][3]. - In the second half of 2023, multiple 85°C locations in Jinan closed, indicating a trend of store closures due to declining customer traffic and performance [3]. Group 2: Market Trends and Challenges - The bakery industry is experiencing a wave of closures among established brands like 85°C, Bread618, and others, primarily due to intense competition and market saturation [5]. - Factors contributing to the struggles of these brands include rising rental and labor costs, product innovation stagnation, and a shift in consumer preferences towards healthier options [4][5]. - New brands such as UH Youhe and Stone Mr. Oven are gaining popularity among younger consumers by focusing on product innovation and quality [5]. Group 3: Future Outlook - The domestic bakery market is projected to grow, with an expected increase of 5.2% in 2024, reaching a market size of 1,105 billion yuan [5]. - Experts suggest that the bakery industry must adapt by lowering costs and making products more accessible to sustain growth and meet changing consumer demands [6].

Core Insights - The closure of the 85°C store on Shanshi East Road in Jinan marks a significant reduction in the brand's presence, leaving only one store in the city [2] - The closure is attributed to high rent and insufficient profits, despite the store's long-standing customer base [2][3] - The brand is facing challenges from increased competition and a lack of innovation, leading to a broader trend of closures among established bakery brands [4][7] Company Summary - The 85°C store in Jinan has been operational for 13 years and will close on November 30, 2023, due to high rent and low profitability [2] - The brand initially entered the Jinan market in 2011 and expanded rapidly, but has since faced a decline in customer traffic and sales [2][3] - Other stores in Jinan have also closed recently, indicating a trend of contraction for the brand [2][4] Industry Summary - The bakery industry is experiencing significant challenges, with many established brands like Duolezhiri, Bread618, and Royal Meifu also closing stores [7] - Factors contributing to this trend include high operational costs, market saturation, and a shift in consumer preferences towards healthier options [4][7] - Newer brands are gaining popularity by focusing on product innovation and quality, while the overall bakery market is projected to grow, reaching 1,160 billion yuan by 2025 [7][8]

Core Insights - The closure of 85°C stores in Hangzhou has raised significant public attention, particularly regarding the long-standing presence of the brand in the area [1][3][10] Company Overview - 85°C, founded in 2003 in Taiwan, expanded aggressively into mainland China starting in 2007, opening nearly 100 stores annually at its peak [7][9] - The brand was once a popular destination for young consumers, known for its signature products like the "Caesar Emperor" bread [7][10] Recent Developments - Three 85°C locations in Hangzhou have recently closed, including the iconic store on Qingchun Road, which had been operating for over a decade [3][6] - The closures are attributed to rising rental costs and increased competition in the bakery sector, leading to a rapid reduction in store numbers over the past two years [6][9][10] Market Context - The bakery industry is experiencing intensified competition and a market reshuffle, with rising operational costs impacting established brands like 85°C [10] - The brand's growth has slowed in recent years, as indicated by financial reports, reflecting broader challenges within the industry [9][10]