How Do Independent Coffee Shops Thrive in Shanghai, the City with the Most Coffee Shops Globally?

According to the "2022 China Coffee Consumption Insights" report released by Meituan yesterday, as of June 30th this year, Shanghai has reached 7,857 coffee shops (with independent coffee shops accounting for over 60% of the total). Shanghai remains the city with the most coffee shops globally, far surpassing New York, London, Tokyo, and other cities.

The report also mentions that Huangpu District has 38.5 coffee shops per square kilometer, while Jing'an District has 20.1 coffee shops per square kilometer, and these numbers continue to rise. With such a high density of coffee shops in Shanghai, why do they continue to open relentlessly? What attracts consumers to these independent coffee shops? (I know you'll answer: because of money) Of course, that's just one factor, which this article will not discuss.

The Historical Foundation of Coffee Culture in Shanghai

Coffee shops in Shanghai continue to increase because most Shanghai residents have developed a habit of drinking coffee, passed down through generations. As early as 1866, a book titled "Cooking Western Food" published by Shanghai's American Presbyterian Mission Press already documented the preparation method of "coffee" (COFFEE). By the late Qing Dynasty, newspapers and books featured many transliterated words for COFFEE. By 1906, the first coffee shop officially open to Chinese customers, "Baoli Coffee Shop," was established on Fuzhou Road in Shanghai. From this time, Shanghai's socialites, nobles, and businessmen began to develop the habit of drinking coffee.

By 1917, more and more coffee shops appeared in Shanghai. Until 1937, Shanghai's coffee industry was extremely prosperous, with numbers and density comparable to today (considering the number of coffee consumers at that time). As can be noted from the map below, 100 years ago, Shanghai already had coffee shops within walking distance of each other.

However, what truly made Shanghai residents develop the habit of drinking coffee was the emergence of vacuum-packed coffee powder in the early 1960s. The advent of pre-packaged coffee powder changed the expensive price of coffee and transformed the scenarios where people consumed coffee. Consequently, more and more ordinary people began buying coffee powder to brew at home, not pursuing flavor or atmosphere, but simply using coffee as a daily signal to motivate themselves and start a new day, thus forming a cultural habit.

The Modern Coffee Shop Landscape

Of course, with the development of the times and the spread of specialty coffee culture, coffee shops are opening more and more frequently even outside Shanghai. The dense number of coffee shops in Shanghai didn't happen overnight. Each generation of independent coffee shop owners actually has their own unique business philosophy. This also explains why chain coffee shops are opening everywhere, yet independent coffee shops still have room to compete.

The three most valuable assets of independent coffee shops are: the soulful presence of the owner, unique decoration style, and distinctive product characteristics.

On Style

The greatest joy of opening an independent coffee shop lies in not hiring professionals, but instead decorating and creating a unique style based on one's own preferences. The more casual the style, the more likely it is to leave a deep impression on consumers. There are thousands of beautiful coffee shop styles, but a unique coffee shop is one of a kind.

Whether or not one has experience running independent shops, every independent coffee shop needs to control initial costs during its opening phase. The first priority when opening each independent coffee shop is to ensure a clean and tidy space for customers to stay and a place to prepare coffee; everything else can be gradually added during operation. This approach not only avoids forcing oneself to hastily purchase unsuitable decorations or cabinets within a certain period but also allows the coffee shop to develop its unique style through this organic process.

On Products

Unique product characteristics can be self-roasted coffee beans, self-created drinks, or one's unique understanding of brewing methods. Coffee beans are essentially agricultural products, and their flavor expression depends entirely on whether the roaster and brewer understand them. The uniqueness of products离不开 the barista's interpretation of coffee beans.

Whether it's a pour-over coffee, a cold brew coffee, or a creative coffee drink, each can reflect a person's understanding and knowledge of coffee. Regardless of the extraction/pairing method, showcasing the characteristic flavors of coffee is key, while elevating these flavor characteristics is the charm.

On the Owner

An interesting owner can be considered the treasure of an independent coffee shop! There aren't many customers who return because of products or environment, but there are many who return because of the owner. Independent coffee shops continue to be in demand because they possess the interesting souls that chain coffee shops lack.

In this fast-paced city, independent coffee shops that stand tall do so because of their human touch and slow pace, which is why they continue to dot the streets and alleys a hundred years later.

Credits and Resources

Image source: Internet

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