Summary of Key Points
Seesaw Coffee (parent company: Shanghai Xieshe Coffee) experienced a breakdown in its capital chain due to reckless expansion, leading to 107 legal lawsuits (amounting to approximately 47 million yuan in debts to suppliers, employees, property management companies, etc.). In 2026, the company officially entered bankruptcy liquidation. Once hailed as the “Peking University of Chinese premium coffee,” Seesaw built its reputation by focusing on premium coffee culture and stable operations. However, after securing financing, it aggressively expanded its store network (opening 67 new stores in 2022). Poor site selection and insufficient financial resilience led to a cash flow crisis in 2023, resulting in the closure of numerous stores. The brand’s downfall was not due to low-price competition but rather a strategic misalignment that cost it its core competitive advantages.
Current Situation of Bankruptcy Liquidation: Beset by 107 Lawsuits
Seesaw’s current situation can be described as being surrounded on all sides by creditors:
- Who is demanding repayment? Suppliers (such as Maru Industry, which supplied equipment), employees (claiming unpaid wages), property management companies (for rent), banks (for loans), and logistics firms (for freight costs). Half of the 107 lawsuits emerged in 2025, with a total debt of around 47 million yuan.
- How are the courts handling this? The company and its founder have been restricted from certain activities (such as flying by plane or high-speed train, staying in luxury hotels), and the shareholders’ equity has been frozen. Additionally, more than 14 million yuan in executable funds remain unpaid.
- How many stores are left? At its peak, Seesaw had 135 stores; now only 34 remain, barely keeping the business afloat, but they cannot overcome the overall debt crisis.
Past Glory: The “Pioneer” of Chinese Premium Coffee
When Seesaw was founded in 2012, Starbucks dominated the domestic coffee market. The brand pioneered several initiatives:
- Popularizing the concept of premium coffee: It introduced the ideas of using single-origin coffee beans and manual brewing techniques to the general public, selling each cup for 30–40 yuan, targeting a mid-to-high-end market segment.
- Focusing on long-term value: In 2014, it launched the “Yunnan Ten-Year Plan,” which aimed to improve coffee bean quality by supporting local farmers and purchasing their beans at higher prices. It also established a barista training program, earning the reputation of being the industry’s “Peking University.”
- Growth through word-of-mouth: For the first five years, Seesaw focused solely on the Shanghai market, designing each store uniquely to attract customers with its aesthetic and coffee culture. It was once dubbed “China’s Blue Bottle Coffee” for this approach.
The Turning Point: Overreaching Expansion after Financing
After securing its first round of financing (45 million yuan) in 2017, Seesaw accelerated its growth:
- Aggressive expansion: It opened 67 new stores in 2022, aiming to reach a hundred stores quickly. However, the site selection was inadequate; some stores sold fewer than 200 cups daily (the industry’s break-even point is typically above this figure), resulting in unsustainable costs.
- Cash flow crisis: Without additional funding and struggling to generate profits due to high expansion expenses, Seesaw faced a severe cash flow shortage, forcing the closure of many stores and accumulating more debt.
- Strategic confusion: The brand tried to maintain its premium image while competing with fast-growing chains like Luckin Coffee in terms of efficiency. This led to a loss of both its premium reputation and competitive edge.
The True Cause of Failure: Not Killed by Low Prices, but by Losing Its Essence
Many believe Seesaw was overtaken by low-price coffee brands like Luckin and Kudie. However, the real issue lies elsewhere:
- Market demand still exists: The remaining 34 stores are evidence that there is still a market for premium coffee.
- The fault lies with the company itself: After receiving financing, Seesaw abandoned its original vision, shifting from a slow, quality-focused approach to rapid expansion. It failed to preserve the essence of premium coffee and adopt the efficiency practices of chain brands, resulting in a loss of both its core strengths and competitiveness.
A Warning for the Industry: Reckless Expansion Is a “Deadly Trap”
Seesaw’s collapse serves as a cautionary tale for all premium coffee brands:
- Expansion must be strategic: Do not open stores blindly just for the sake of financing or scale. Careful site selection and operational excellence are essential; otherwise, more stores will only lead to greater losses.
- Protect your core values: The competitiveness of premium coffee lies in quality and culture; don’t sacrifice these for efficiency. Otherwise, you’ll end up no different from ordinary coffee brands.
- Financial resilience is crucial: Financing is a valuable tool, but the ability to generate profits on its own is fundamental. Without it, companies like Seesaw will face cash flow crises.
In short, when pursuing premium coffee, you must clarify your goals: either focus on quality and small-scale excellence or pursue efficiency as part of a chain operation. Striking a balance between the two is essential; otherwise, problems are inevitable.