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.

CoCo's mid-market positioning was squeezed between ¥10 value chains and ¥25 premium tea houses, leaving it in a shrinking middle as rivals launched new hits weekly.

CoCo's product lineup stagnated while competitors launched new hit drinks weekly, making the brand feel outdated to younger consumers.

The mid-tier tea segment collapsed as consumers traded down to ¥10-15 chains or up to ¥25+ premium brands, leaving CoCo in a shrinking middle.

Franchisees bore the cost of declining sales, and the chain's rapid-expansion era left a legacy of marginal locations that could not sustain current volumes.

The brand had been a market pioneer but failed to build the digital-native marketing (Douyin, Xiaohongshu seeding) that defined the new generation of tea brands.

Pioneering a market does not earn you a place in it forever — in a hyper-commoditised industry, even the first mover gets commoditised.