Taipei: Gourmet Master Co., the owner of the 85°C Bakery Cafe chain, has announced plans to shutter underperforming outlets in China as part of a business restructuring strategy, while simultaneously ramping up its expansion efforts in the United States.

According to Focus Taiwan, the decision stems from challenges in the Chinese market, including weak demand. In response, a board meeting held on Thursday resolved to close stores that are not meeting profitability expectations to streamline the chain’s operations and logistics.

The company has not specified the exact number of store closures in China, though local media suggest approximately 40 outlets, or 10 percent of its total, may be affected. As of the end of June, 85°C café operated 441 stores in China, with significant concentrations in Jiangsu province, Shanghai, and Fujian province. Over the first nine months of the year, the chain’s China operations experienced a 14 percent decline in revenue in yuan terms. China, which comprises 37 percent of th
e company’s total sales, saw its sales dip by 2.06 percent year-on-year to NT$13.77 billion (US$451 million).

The café chain revealed that its Chinese operations incurred substantial operating losses in 2024 and the first half of 2025. Market estimates suggest that the restructuring could help the company’s China business reach a break-even point and eventually turn profitable. The primary objective of this restructuring is to enhance shareholders’ equity and boost long-term company value.

Conversely, 85°C café is committed to growing its presence in the U.S. market, having opened three new outlets in the third quarter of this year. By the end of September, the chain operated 86 outlets in the U.S., with plans to expand to 90 by year-end. In the first nine months of 2025, the U.S. operations experienced a double-digit sales increase, with a growing customer base.

This year, 85°C café has entered five new U.S. markets, including New York, New Jersey, Illinois, Kansas, and Louisiana. Consequently, the U.S. h
as emerged as the largest revenue contributor, generating 48 percent of total revenue in the first nine months of 2025. The company anticipates that its revenue share from the U.S. will continue to grow next year.

In the first half of the year, 85°C café reported earnings per share of NT$1.83, an increase from NT$1.32 during the same period last year.