Food and Beverage Financial Observation | Tea Baidao Management: Strengthening Multi-Category Strategy, Maintaining Positive Outlook on Coffee Business

Ask AI · How can Chabaidao’s coffee business synergize with tea beverages to boost in-store sales?

On March 27, Chabaidao (02555.HK) held its 2025 results press conference. Full-year GMV reached 16.18 billion yuan, up 11% year over year; average daily GMV per store increased by 10% compared with 2024. Against the backdrop of the withdrawal of external subsidies in the fourth quarter, Chabaidao’s average daily GMV per store still maintained a double-digit growth momentum, and this trend continued into the first two months of 2026.

Management said that the company’s sustained investment in core capabilities—such as optimizing its store network, upgrading product R&D, expanding consumption scenarios, and improving operational efficiency—has entered a period of value realization for financial improvement and business recovery, opening a channel for high-quality growth for the brand’s future development.

In 2025, Chabaidao launched 117 new tea beverage items and completed 25 product iterations; the contribution of new products to GMV exceeded 30%, and the effectiveness of new launches was clearly evident. In the second half, substitution-style products represented by “solid Yangzhi sweet fruit (Yangzhi Gancao)” effectively expanded the stores’ ability to capture consumption demand in afternoon tea scenarios. At the same time, Chabaidao has recently rolled out large-scale installation of fully automatic coffee machines in stores and launched freshly ground coffee products, and the tea-coffee synergy effect has been evident. Currently, in some stores, the average daily number of coffee cups served has already exceeded 100 cups. While significantly improving store sales performance in time slots such as breakfast and afternoon tea, this has also effectively boosted sales of its existing tea beverage products. Based on the current rollout pace, the company maintains an optimistic outlook for the development of its coffee business, and expects that by the end of 2026, the coffee business could cover 2,000 stores, with the share of cups rising to around 15%.

By the end of 2025, Chabaidao stores had covered 354 cities across 31 provinces nationwide, and the proportion of stores in third-tier cities and below rose to 46.1%. When discussing the store network, management said that as the network layout deepens, the company places more emphasis on store quality and operating efficiency, and will continue to treat lower-tier markets as an important direction for store growth.

On the supply chain side, Chabaidao has 26 warehousing centers nationwide. Approximately 93.7% of stores achieve next-day delivery after placing an order, and overall warehousing and logistics costs are only 1.3% of GMV; the company’s supply chain efficiency is at an advanced level in the industry. In the upstream raw materials segment, the company has implemented a number of plans and brought them to fruition in recent years, including a tea blending plant in Fuzhou, Fujian, with annual production capacity exceeding 2,000 tons; a jasmine tea jasmine tea processing (jasmine “jasmine tea”) factory in Hengzhou, Guangxi, with annual production capacity exceeding 3,000 tons; and an eco-friendly packaging materials factory in Chengdu, Sichuan, with annual production capacity of nearly 26,000 tons.

At the press conference, management of Chabaidao said that in the future, the company will continue to focus on products, strengthen a multi-category strategy, improve store operating efficiency, and support long-term development.

Cover News reporter Min Qiang