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The encyclopedia · Sales & Retail · Operational decision · 2025–2026

Shougan Maifu denied it was closing — and the denial emptied every store in Changsha

Owing wages and closing shops, the bakery told customers 'we're only optimising.' The reassurance triggered a prepaid-card run that shut all 20-plus stores.

Shougan Maifu · 2025-12

What happened

Shougan Maifu (手感麦夫), founded in Changsha in 2015, was one of the city's best-known 'internet-famous' bakery chains, at its peak running more than 20 stores known for queues. By early December 2025 several branches had shut without notice and staff reported unpaid wages. The brand was already in trouble when, on 4 December, general manager Lu Xingzhu acknowledged the wage arrears to reporters but insisted the brand was 'not closing' — only 'optimising' four loss-making stores.

The reassurance backfired. Shougan Maifu, like most Chinese bakery chains, ran on prepaid stored-value cards (储值卡): customers paid money onto a card to spend later. Told the brand was sound but seeing shops dark, cardholders rushed the stores still open to spend their balances before it was too late. The run was severe enough that the Wanjiali branch limited purchases and saw hour-long queues, and the Yuhua District market regulator posted a consumer warning at one branch over refund disputes.

The denial had run straight into the wage arrears it was trying to play down. On 20 December the Dongtang store posted a notice reading 'closed, no staff'; the Xiyingmen store shut over a pay dispute; the Fenghuanghai branch leader became unreachable and regulators locked the storefront. Two days later, on 22 December, Shougan Maifu posted an open letter admitting 'mistakes in brand operation and decision-making' and suspended all stores for 15 days of rectification. By March 2026 every Changsha store was dark, and rival chain Youhe offered to honour the stranded member balances at no cost.

The collapse was an industry pattern, not a lone accident. Bakery chains across China were squeezed between high-end experiential shops and ultra-cheap supermarket bread, and commentators flagged 'stagnant product iteration', high rent and thin margins as the forces pushing 'middle brands' out first. Shougan Maifu's specific error was sharper: a denial its own wage book contradicted, delivered to customers holding cards they could only redeem by showing up at once.

Why it happened

  • The denial contradicted the wage arrears the general manager had already confirmed, so cardholders read 'we're optimising' as 'spend now or lose it' — the denial itself became the run's trigger.
  • The model ran on prepaid stored-value cards: money arrives before the bread. Once confidence cracks, every customer is individually rational to redeem at once — and collectively fatal.
  • Product iteration lagged. In a market splitting between premium experiential bakeries and cheap supermarket bread, a stagnant 'middle brand' lost its reason to be queued for.
  • No cash buffer existed for a redemption surge. High rent and thin margins left nothing to absorb a run a slower-moving rival might have weathered.
What it cost20+ Changsha stores shut; balances stranded; wages unpaidcostly

The lesson

A prepaid-balance business cannot reassure customers with a denial its own wage book contradicts. Each cardholder is right to redeem first — and right enough together to cause the run they feared.

Aftermath

Every Shougan Maifu store in Changsha was closed or suspended by March 2026; the brand's first attempted reopening did not hold. The rival chain Youhe (祐禾) stepped in to honour stranded member balances at its own expense, and the case was held up across Chinese trade press as the example of a 'middle brand' bakery collapsing in the industry's 2025–26 shakeout. For the prepaid-card model the lesson is structural: stored value is customer money held in trust, and a crisis-communications line cannot replace the cash to redeem it.

Sources

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