CoCo lost 400-plus stores in six months as bubble tea commoditised

CoCo都可 launched in 1997 in Taiwan and became one of the first bubble tea brands to conquer mainland China. At its peak, the chain operated more than 4,000 stores across the country, building its reputation on a consistent product, a broad menu, and early franchise partnerships that blanketed Chinese cities with its orange-and-white signage. For most of the 2010s, CoCo defined what a big tea chain looked like in China.

By 2025, CoCo closed more than 400 stores in just six months — one of the steepest decline rates among legacy tea chains. The brand that had once led the market now struggled to attract the Gen Z consumers who had moved on to newer, more photogenic competitors. The decline was part of a broader shakeout in China's tea market, where hundreds of brands competed for the same customers with increasingly similar products.

The collapse of CoCo's store count reflected product aging at a fatal pace: the chain introduced few new hits while rivals brought fresh SKUs weekly. Its franchise model, once a strength, became a liability as franchisees struggled with declining foot traffic and thin margins. CoCo found itself squeezed between ¥10 value chains and ¥25 premium tea houses, in a market that had left its mid-market positioning behind.