Coffee boutiques need double shot of revival after lockdown

• Published date: 27 June 2022
• Publication title: Shanghai Daily

s Shanghai has reopened after its two-month lockdown, the city is once again savoring the coffee aroma wafting from its more than 7,000 cafes, the world's biggest number.

way of life, a benchmark of economic vitality and a symbol of cultural diversity, the beverage is brewing strongly again to reaffirm the city's coffee culture capital mantle.

Statistics show that Shanghai's per capita coffee consumption is about 20 cups per year, while the national average is four cups. It ranks first in terms of coffee consumption scale, number of coffee shops, and coffee industry development.

However, the brakes were slammed on the blooming industry by the citywide lockdown from April 1 to May 31 as the COVID-19 pandemic resurgence hit.

The city has cautiously rebooted since June 1 when it lifted the lockdown, and it's trying hard to get back to normal life, with convenience stores, wholesale markets and coffee shops now allowed to open.

Boutique street-corner coffee houses are still struggling to survive as they strive to pay rent and wages.

"We cannot 'lie flat' (lay back) now. It's a hard time for everyone, but also a time to wire in and catch up on what we've missed during the past two months," said Cai Zhongshun, founder and owner of MQ Coffee, one of the earliest boutique cafes in China.

The brand has developed to cover the whole industry chain from bean plantations, roasting factory, online and offline coffee houses, barista training and consultancy.

Cai's Shanghai flagship cafe in a historic brick house on Shaanxi Road S. opened last November, but had to shut down quickly when the coronavirus hit in mid-March, followed by two months of strict closure.

The heavier blow was to Cai's roasting plant in suburban Jiading District and the online business team, because the supply chain was stopped, and all staff were quarantined at home. He signed about 150 applications for permission for his employees to come back to the office during the lockdown.

With the city gradually getting back to normal in June with the resumption of logistics, coffee sales have had their biggest bounce-back but only in the online sector. Data from Dianping (a widely used food app) shows that online group purchases of coffee in Shanghai rose by 433 percent. At the same time, the sales of coffee brands such as Sumidagawa and G7 increased by about 300 percent year on year on Vipshop, an online shopping platform.

"The good thing is that the industry is recovering after June 1, though there is no 'revenge...