Amid the viral popularity of solid mango pomelo sago desserts, CHABAIDAO quickly launched its own version. However, the new product has sparked controversy over alleged forced bundling and scarcity tactics.
On some food delivery platforms, the item is marked as "no delivery for single orders," alongside other dessert bowl products, triggering backlash. Consumers flooded CHABAIDAO’s social media accounts with complaints, calling the move "shameless" and criticizing it as forced bundling. Some stores even showed the single cup as sold out while keeping double-cup bundles available.
Multiple CHABAIDAO outlets now display the product as out of stock. Skeptical netizens questioned whether this was artificial scarcity, noting stores listed it as sold out right after opening. The company’s customer service attributed stockouts to supply shortages and regional unavailability due to ingredient freshness and logistics.
CHABAIDAO also quietly raised the drink’s price from 19 yuan to 22 yuan, citing surging costs for key ingredients like Kat mangoes. A franchise owner revealed the item’s ingredients are now so expensive that the current pricing barely covers costs, with mango supplies frequently depleted.
Behind these moves lies CHABAIDAO’s struggle to boost performance. After a 10% revenue drop and 59.7% profit plunge in H1 2024, the chain saw a modest recovery this year with 4% revenue growth (2.5 billion yuan) and 40% profit increase (333 million yuan). Cost-cutting measures included a 2.8% R&D budget reduction and 186 fewer employees.
Store expansion slowed dramatically—just 59 new mainland China locations in H1 2024 (0.7% growth) versus 20.6% the previous year. The company closed 135 stores in top-tier cities while expanding in lower-tier markets. Overseas, it opened 21 stores across seven regions, though their financial impact remains minimal.
With 98% of its 8,444 stores being franchises, CHABAIDAO’s strategy now focuses on下沉 markets and international growth amid domestic challenges.
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