Coffee Lovers Face Shortages, Cafes Struggle to Cope! Shanghai's 'Pause' Leaves Coffee Industry in Trouble...
Shanghai's Coffee Culture Under Lockdown
Since the middle of last month, residential communities across Shanghai began implementing successive lockdown management. The sudden restrictions caught many coffee lovers off guard — during the six-hour windows when residents were allowed out to buy supplies, the phrase "I need to buy coffee" trended on Weibo, with the topic drawing more than 340 million views.
The trending topic set off a wider debate about whether Shanghai residents are truly addicted to coffee, fueling the city's dense concentration of cafes. In reality, not everyone depends on caffeine — for many drinkers it is simply habit. Nor does every coffee drinker need specialty or freshly ground coffee; coffee shops largely provide social space or serve those actively seeking a specialty coffee experience.
Early Lockdown Challenges
Once Shanghai began partial lockdowns in some communities, several cafe owners told media that pandemic impacts in certain districts had forced them to suspend dine-in service, leaving only takeout and delivery. Daily revenue took a hit to varying degrees.
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At that stage, though, large-scale lockdowns had not yet been fully implemented, and a limited number of delivery orders plus regulars picking up at the door could still cover operating costs. Owners acknowledged that if a full lockdown shut businesses completely, the pressure would rise sharply — but as long as any restrictions lasted only a few days and lifted on schedule, they could keep their shops running.
The Prolonged Crisis
Things rarely go according to expectation. As case numbers climbed rapidly, no business — whatever its industry — could reopen as planned. Cafe owners faced zero income while rent, labor, utilities, and spoiled materials kept draining their accounts. Small amounts add up, and these amounts were anything but small.
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Recently, several Shanghai cafe owners have taken to social media to say they intend to transfer their shops once the lockdown ends, with a blunt rationale: not enough capital to survive the fierce competition ahead. Life goes on, and they cannot sink all their living expenses into the business. Cutting losses promptly has become their final option.
Government Support and Its Limitations
Some owners pointed out that although the Shanghai municipal government's policy measures to combat the pandemic and assist enterprises included tax reductions and refunds, rent relief, and financial subsidies to ease burdens and help industries resume development, these policies offered little concrete help to small businesses in the current situation.
One problem is that many small shops lack the working capital to resume normal operations once the lockdown lifts, and to offset their costs they may have to raise prices. Another is that once business resumes, the major coffee chains will launch promotions to pull customers back in — and a small shop can hardly compete with big chains that have deep financial backing.
Future Challenges and Strategies
That is the reality: even with enough funds to survive the lockdown, stabilizing and retaining customer traffic is its own challenge. According to some owners, there will be a burst of post-lockdown consumption, but it will not last, and many people have grown used to brewing coffee at home — a habit shift that will reshape demand. Cafes cannot rely on beverage sales alone once they reopen.
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Owners who are confident they can outlast the lockdown should think beyond beverage discounts: quickly launch convenient brewing formats such as drip coffee bags to build brand loyalty, run promotions on coffee beans, and set up online sales channels. If every shop fights only on beverage price, small operators will always lose — so when you cannot win on price, you must find other ways to attract and keep customers.
Broader Industry Impact
The disruption extends well beyond Shanghai's cafes. Roasters elsewhere have watched their products sit stuck in Shanghai warehouses — no people in, no goods out. Many coffee bean brands have run short on inventory, and some prices have been adjusted accordingly.
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To work around this, some green coffee suppliers have set up "temporary warehouses" in other cities: all air-imported beans are routed there first and, after inspection by the relevant departments, gradually shipped onward to areas that can receive deliveries, cutting the cost of goods idling at port. According to the latest news from Coffee Workshop, the long-awaited first batch of 2022 new-crop Guji Grade 6 green beans has arrived in Guangzhou.
Looking Forward
Every industry has faced hardship during this period. The best anyone can do is cooperate with public health measures to help end the outbreak in all regions as quickly as possible, so everyone can get back to normal life soon.
Image source: Internet
FrontStreet Coffee Recommendation
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Important Notice :
FrontStreet Coffee is a long-established specialty coffee roaster in Guangzhou China, selling freshly roasted beans from its own farm in Yunnan as well as dozens of carefully selected single-origin beans from around the world for both pour-over and espresso. The products deliver consistently excellent quality and great value, with shipping within 24 hours. Guangzhou's FrontStreet Coffee shop is recommended by many coffee lovers, and the beans are now available online at the Tmall 。
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