CHAFORU went from 200-plus mainland stores to almost none

吃茶三千 launched as a premium Taiwanese bubble tea brand in mainland China, positioning itself in the mid-to-high price tier with artisanal tea blends and stylish store designs. At its peak, the brand operated more than 200 locations across Chinese cities, riding the wave of Taiwan-style tea culture that had swept the country in the 2010s.

By 2025, the brand had collapsed to just 2 remaining stores. The crash reflected the brutal commoditisation of China's tea market: hundreds of brands fought for the same customers, price competition drove margins to near zero, and the mid-premium tier that 吃茶三千 occupied was squeezed from below by ¥10 tea chains and from above by luxury tea houses backed by major capital.

The decline also reflected the shrinking space for Taiwan-origin consumer brands in China. Political tensions, supply-chain disruptions, and the growing preference for local mainland tea brands over Taiwan-origin labels added structural pressure to a business model already strained by market saturation.

The brand's 200-plus stores collapsed to 2 as the mid-tier vanished; it could not win on price against ¥10 chains or on status against capital-backed luxury houses.

China's tea market became hyper-saturated with hundreds of brands offering similar products, making it impossible for mid-tier players to maintain volume or pricing power.

The mid-premium price tier collapsed as consumers traded down to ¥10-15 chains like Mixue or up to premium tea houses backed by deep-pocketed investors.

Taiwan-origin food brands faced growing headwinds from political tensions, supply-chain friction, and mainland consumers' preference for local tea house brands.

The brand overexpanded during the tea boom, building a 200-store network that became a liability when foot traffic and per-store revenue declined simultaneously.

A mid-market position in a hyper-commoditised market is the worst place to be — you cannot win on price against the low end or on status against the high end.