Shanghai’s Coffee Revolution Booms Amidst Fierce Competition

In a city renowned for its tea culture, Shanghai is experiencing a coffee revolution. Unlike most Chinese cities where major coffee chains dominate, Shanghai has seen an explosion of small specialist cafes. According to the Shanghai government, there are over 8,000 cafes in the city, with some streets boasting up to 18 cafes within a few hundred meters.

This burgeoning coffee culture has permeated all levels of society. School students, influenced by their parents, are now regular coffee drinkers. Grandparents often pop into cafes after dropping their grandchildren at school, contributing to the growing customer base.

“Shanghai has long been an international trading center, and we started drinking coffee a long time ago,” said a local resident. “Smaller cities will also gradually get different types of cafes.”

In a unique twist, some cafes in Shanghai are run by people with disabilities. One cafe, staffed by visually impaired individuals, has developed an innovative way of serving coffee. Customers order at a window, and the staff pass the drinks through, creating a seamless and inclusive experience.

Despite the popularity, the competition among cafes is fierce. One cafe owner advised against opening a new cafe due to the high costs and low returns. “Investment versus returns is awful. You need to buy very expensive machines and put a lot of money into decorating. You’re earning very small amounts of money compared to other industries,” he said. To maximize their investment, some cafes transform into bars at night, attracting a different clientele.

Amid concerns about the economy, there is cautious optimism. “I’m quite optimistic. I hope the Chinese economy will quickly return to pre-pandemic levels,” another cafe owner remarked.

The Chinese government aims for a consumption-led recovery, and the booming coffee culture in Shanghai might be a step in the right direction.