‘People’s Cafe’ Backtracks After State Media Slams Politically Charged Name

Chinese coffee chain apologizes after state media criticism

Yao Chao People’s Cafe, a domestic coffee chain, has apologized and moved to change its branding after state-run media criticized the company for using the politically loaded term “People” in its name and evoking official Communist imagery.

The brand had decorated many outlets in bright red, displayed a star on storefronts and used a typeface modeled on the calligraphy of Mao Zedong — a visual identity that state media said resembled official party aesthetics. Photos circulating on Chinese social platforms showed drinks dusted with the word “China” on top and walls that read slogans such as “Tell China’s story with coffee.”

“The term carries a distinct public character and profound political connotations, embodying specific social sentiments and public interests,” wrote the People’s Daily. “It must not be profaned, nor can it be misused. Marketing can be creative, but it must not cross the bottom line.”

State media described the company’s move as part of the so-called “gimmick economy.” In response, Yao Chao People’s Cafe — which state outlets say operates roughly 30 shops across mainland China — posted an apology on social media and said it would restore the registered name “Yao Chao” to all mainland locations. The chain added that outlets overseas and in the semi-autonomous cities of Hong Kong and Macao will retain the People’s Cafe branding.

Online reaction ranged from mockery to calls for legal action. One Weibo user wrote, “Not a very smart move,” while another asked whether the branding could breach regulations and warrant suspension or reorganization.

Why it matters

The episode highlights how political symbolism and regulatory sensitivities can reshape corporate branding quickly in China. It also comes as competition in the Chinese coffee market intensifies: local chains such as Luckin Coffee have expanded rapidly, putting pressure on foreign incumbents. Last week, Starbucks — founded in Seattle — announced it would sell the controlling stake in its more than 8,000 China outlets to a local investment firm, underscoring changing dynamics in the market.

Bottom line: A marketing choice that leaned on patriotic and party-related imagery prompted a swift rebuke from official media, forcing a public apology and rebranding that underscore the risks of using politically charged language in commercial promotion in China.