Internet-Famous Bakery Youhe Addresses Store Closure Wave, Calls It Normal Business Practice and Shifts Away From Rapid Expansion

Deep News
Yesterday

On the morning of September 19, internet-famous bakery brand Youhe found itself at the center of store closure speculation. Following its nationwide expansion push and rapid entry into multiple cities within a short period, the brand is now undergoing its first major round of store adjustments, with locations in several newly entered cities reportedly shutting down—many of which had been operating for less than a year.

In response, Youhe's official account released a video statement. In the video, the brand's regional manager for Hunan explained that for a national brand, it's inevitable that individual stores in certain cities may be impacted by external factors like mall foot traffic or lease agreements. This is a normal business occurrence. Over the past two years, market conditions accelerated Youhe's growth pace, but this year the focus has shifted to proactively selecting prime locations. For a national chain, stores opening and closing, with the strong surviving and the weak being phased out, is simply standard business practice.

"We'd rather open fewer stores than risk any location struggling—our goal is to ensure every store not only survives but thrives. This isn't a contraction; rather, it reflects the brand maturing and prioritizing long-term stability," the manager stated. This year, Youhe has deliberately overhauled its overall growth strategy, abandoning its previous aggressive expansion model in favor of a "one store opened, one store that succeeds" principle. New locations launched this year in cities like Hangzhou, Ningbo, Yichang, Hainan, and Xiamen have all performed exceptionally well. The brand is no longer chasing sheer store count but is instead emphasizing per-store profitability and the long-term operational resilience of each outlet, pursuing a steady and sustainable growth trajectory.

Addressing negative online commentary, the manager noted that with Youhe's growing visibility, it's natural for some voices to leverage the buzz for attention. "We sincerely welcome oversight from all consumers and humbly take in genuine feedback. However, we also ask the public to distinguish between individual store adjustments and the brand's overall financial health, and to judge based on facts."

Regarding the closure of two locations in Changsha, the manager clarified that these moves are part of optimizing the store network and eliminating underperforming sites, not an indication of underlying brand issues. "Rest assured," the manager emphasized, "even with individual closures, all stored-value cards and membership cards remain fully valid at Youhe's operational Changsha stores, with no impact on customer benefits whatsoever."

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