Luxihe raises Series A+ as new Chinese bakery peers collapse
What's the deal? Luxihe Food completed a Series A+ round, backed by Genbridge CapitalDealroom has a profile for this one. Try Dealroom → and Hosen CapitalDealroom has a profile for this one. Try Dealroom →, the company confirmed to Jiemian News in March 2026. The bakery operates more than 700 stores across East, North, South, and parts of Southwest China.
Why now? Luxihe stands out as one of the few "new Chinese bakery" brands still expanding after the sector's shakeout. Data platform Canyan showed China's bread and bakery segment posted negative net store growth over the past year, with more than 100,000 outlets disappearing.
The talent play: The company is hiring from international chains. Wang Yujing, former chief marketing officer at Domino's ChinaDealroom has a profile for this one. Try Dealroom →, joined as chief growth officer and vice president, overseeing store chains, KA e-commerce, marketing, products, and R&D. In April, former McDonald's executive Zhang Yue was named general manager.
What's the endgame? Luxihe survived where rivals like HutoujuDealroom has a profile for this one. Try Dealroom → and Momo DianxinjuDealroom has a profile for this one. Try Dealroom → failed, partly by expanding cautiously and relying on traditional products such as taosu pastries and mung bean cakes rather than viral single items. It is now upgrading stores and shifting from bulk-weighed goods to prepackaged food to raise per-store efficiency and lower franchise barriers.
In renovated stores in Beijing, Shanghai, and Nanjing, products like mung bean cakes and mochi are now sealed and packaged, alongside gift boxes and a "Lujia Shuipu" drinks corner selling beverages priced between 7.9 and US$1.36. One Nanjing property leasing source said Luxihe recently outbid a well-performing Starbucks for a subway station spot.
What could go wrong? The move toward prepackaged goods makes Luxihe resemble a snack store. Fast-growing snack chains such as Lingshi HenmangDealroom has a profile for this one. Try Dealroom → and Zhao Yiming LingshiDealroom has a profile for this one. Try Dealroom → are adding fresh and short-shelf-life bakery items that overlap heavily with Luxihe's core products — competing on price and scale.
That means store openings alone cannot drive growth. Luxihe must push into e-commerce and membership retailers like Sam's Club and Metro to place prepackaged food on wider shelves — the problem chief growth officer Wang must solve, turning those channels into a genuine second growth curve.
The signal: The past wave of new Chinese bakeries proved capital and viral products can build hundreds of stores fast, but not a profitable national chain. Luxihe's survival owes to moving slowly; its next test is finding an efficient growth model as snack chains invade its core category.
Image credit: Generated with Gemini
