85°C Reported RMB 4.5 Billion in 2021 Revenue, With Mainland China Down and 66 U.S. Stores Generating RMB 1.1 Billion

This is an English adaptation of a FoodBud historical article originally published on June 10, 2022.

FoodBud reported that bakery chain 85°C disclosed its 2021 annual report. The company generated RMB 4.5 billion in full-year revenue in 2021, up 1% year on year, and posted net profit of RMB 240 million.

Regional Mix

Mainland China remained 85°C's largest sales region, accounting for 58% of revenue in 2021. That share declined from 61% in 2020.

Mainland China contributed RMB 2.6 billion in revenue in 2021, slightly lower than in 2020.

According to Narrow Door Data, 85°C had:

• 338 stores in Taiwan, China
• 8 stores in Hong Kong, China
• 560 stores in mainland China

The U.S. business contributed RMB 1.1 billion in revenue, up 18.5% year on year. 85°C entered the U.S. market in 2008 and had 66 U.S. stores by the end of 2021:

• 48 in California
• 10 in Texas
• 6 in Washington
• 1 in Nevada
• 1 in Oregon

Other regions accounted for only 1% of revenue. In practice, 85°C's sales footprint was concentrated in mainland China, Taiwan, China, and the United States.

Product Mix

By product category, bakery items such as bread, toast, sandwiches, and croissants generated RMB 1.65 billion in 2021, representing 36.7% of total revenue.

Western-style pastries, mainly cakes, generated RMB 1.6 billion, or 35.5% of total revenue. Beverages generated RMB 1.2 billion, or 27% of total revenue.

The annual report also disclosed sales value by category for external markets, mainly the United States and Australia:

• Western-style pastries: RMB 420 million
• Bakery products: RMB 500 million
• Beverages: RMB 230 million

Early 2022 Performance

In 2022, mainland China was heavily affected by pandemic-related disruption. In April 2022, monthly mainland China revenue was RMB 116 million, down 44% year on year.

Mainland China's first-quarter revenue was RMB 600 million, with each month from January to March declining year on year.

In the United States, 85°C generated RMB 290 million in first-quarter revenue, up 20.8% year on year.

Overall, 85°C's first-quarter 2022 revenue was RMB 1.1 billion, slightly lower than the same period in 2021. By category, beverage, pastry, and bakery revenue were RMB 290 million, RMB 390 million, and RMB 400 million, respectively.

Note: All 2022 performance figures cited here are historical.