Strolling through the streets of Shanghai, the city's vibrant café culture is impossible to miss. In certain areas, one can hardly take a turn without encountering yet another new, cozy café.
As China's financial capital, Shanghai now boasts a staggering number of coffee shops, with the government claiming it has the highest concentration of any city in the world.
The city's café culture has been evolving for years, but the post-pandemic reopening has given it a significant boost, as locals embrace outdoor living and seek out spaces to gather with friends and family.
However, the proliferation of new establishments has also intensified the competition for customers. Most café owners interviewed express doubts that all these businesses can survive in the crowded market.
Shanghai officials report that the city hosts "more than 8,000 cafes," while a recent study by the Shanghai International Coffee Culture Festival recorded an impressive 9,553 coffee shops by the end of 2023.
What sets Shanghai's café scene apart is not just the sheer number of outlets, but also the fact that it is largely fueled by niche, independent establishments, unlike the dominance of major chains like Starbucks and Luckin in other Chinese cities.
Dong Xiaoli, the owner of Hidden Track café, admits that she had "no choice" but to dive headfirst into the industry, driven by her deep passion for coffee. However, the path has not been an easy one.
When asked what advice she would offer to someone considering a similar venture, Dong laughs and responds bluntly, "I'd say don't do it." She explains, "The investment versus return is awful. You need to buy expensive machines and put a lot of money into decorating. You're earning very small amounts of money compared to other industries."
In this highly competitive market, having a distinct and appealing ambiance has become just as important as any other factor in attracting customers. Hidden Track has opted for a limited menu and a simple, minimalist design that opens up to the street in a welcoming manner.
Being seen at a café has become a hip and urbane social activity in Shanghai, drawing in many young customers who enjoy dressing up to meet for coffee and conversation. The city's residents take pride in their thriving café culture, seeing it as a reflection of Shanghai's long-standing reputation as an international, cosmopolitan hub.
As one man sitting at a café observes, "Shanghai has long been an international trading city: we started drinking coffee a long time ago. Smaller cities will also gradually get different types of cafes." A nearby woman enthusiastically agrees, laughing as she declares, "As many as I like," when asked how many cups of coffee she drinks per day.
As the number of cafes continues to increase, so too does the appetite for experimentation among coffee drinkers in this traditionally tea-drinking nation. The coffee enthusiasts are eager to explore new flavors and brewing methods.
Yuan Jingfeng, the owner of the R1070 café, sources all of his beans from Japan, explaining, "My costs are very, very high. My imported beans include American and Italian styles, all of which I import from Japan in their original packaging." He notes that wholesale prices have risen dramatically in recent years, as conflicts in Yemen and Ethiopia have impacted coffee production, resulting in fewer high-quality beans to meet the growing demand from coffee drinkers.
Despite these increased costs, Yuan says he has resisted passing them on to his expanding customer base.
Another café, AC, is owned and operated by deaf individuals, employing deaf baristas. Yang Yanfang, who serves as an interpreter for customers, observes that after the pandemic, "friends are really keen to meet up for a coffee or a drink and Shanghai has become a city with a really strong coffee culture." She adds, "I can skip meals, but I can't skip my coffee."
This is not the only unique café concept in Shanghai. Another popular establishment is operated by blind staff and serves coffee through a hole in the wall, with a person in a monkey suit arm handing the drinks to customers waiting outside.
Indeed, the proliferation of cafes is evident, with one stretch of road hosting 18 establishments within just a couple of hundred meters, all of which appear to be bustling with customers.
Cafe owners are hopeful that this coffee culture is not just a passing fad. Estimates suggest that China's coffee market was valued at over 260 billion yuan (US$35 billion) last year, and it is projected to grow by another 100 billion yuan (US$13 billion). The branded coffee shop market in the country grew by 58% in the past year alone.
To maximize the use of their spaces, many Shanghai cafes are transforming into bars in the evening, sometimes with live music, as high overhead costs make it difficult to have under-utilized space at night. The owner of the Flower Café.
Reference: Stephen M. (31 Jul, 2024) Shanghai's Thriving Café Culture: A City's Love Affair with Coffee
Retrieved from https://www.bbc.co.uk/news/articles/crgk1ll00myo City of cafes: Shanghai’s love affair with coffee
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