New competition in China’s hip bar scene: COMMUNE raises funds to expand beyond 100 locations

COMMUNE, a bar and restaurant chain, recently completed a several hundred million yuan Series A round led by reputable venture capital firm High Tide Capital and others, according to 36kr.

• Founded in 2016, COMMUNE combines a classy dining experience with a full self-service bar.
• COMMUNE currently has nearly 100 stores across China, covering all the major cities like Beijing and Shanghai as well as the main provincial capitals.
• The chain claims to target Chinese Gen Zs and the founding team consists of 20 members with extensive experience in the Chinese “nightlife.” COMMUNE is known as a “wine and dine museum.”

The context: More and more Chinese are looking for outside gatherings with a Western cultural flair. Last year, Helen’s, a Chinese version of an English pub, planned to IPO billed as “an offline social platform for young people.”

• COMMUNE, too, is trying to draw young people into physical spaces, what Starbucks famously dubbed “the third place.” It is known for its open design, furniture that looks like a fancy club, great mood lighting, and music.
• The bar boasts a rich collection of drinks from different countries, including Belgium, Germany, and Spain. It has a close relationship with the California brewery Stone Brewing.
• COMMUNE is trying to accommodate two very different demographics, the night partiers and the casual lunch drinkers. Bar hours are thus notoriously long, 16–18 hours, serving from morning to evening.

The takeaway: The pandemic supercharged digital offerings from video streaming to ecommerce, but it also spurred a renaissance in physical space. As older storefronts died, Chinese entrepreneurs capitalized on people’s desire to meet in real life by putting big money into interior design. The result: bookstore malls, modernized tea houses, and concept bars like COMMUNE.