Why ‘People’s Cafe’ stirred controversy

A coffee chain in China has apologized and rebranded itself after being criticized by state media for using the word “People” in its name, a term considered politically significant in the country. The cafe, previously known as People’s Cafe, was accused of capitalizing on patriotic imagery and crossing political boundaries in its marketing.

In an opinion piece, the People’s Daily, the Communist Party’s official newspaper, said the word “People” has a “distinct public character and profound political connotations, embodying social sentiments and public interests.” The outlet argued that commercial use of such politically charged language amounts to “riding on the gimmick economy.”

Government backlash over political branding

The controversy began when the cafe gained attention for its red-themed decor, Mao Zedong-inspired calligraphy, and a star logo reminiscent of communist symbolism. Photos on Chinese social media showed coffee cups topped with cocoa powder spelling out “China” and walls displaying the slogan “Tell China’s story with coffee.”

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While the marketing drew crowds, it also caught the eye of state authorities. The People’s Daily publicly rebuked the chain, writing, “Marketing can be creative, but it must not cross the bottom line.”

The cafe’s decision to use “People,” a word reserved for state institutions such as the People’s Liberation Army, People’s Bank of China, and even the People’s Republic of China itself, was deemed inappropriate for private enterprise.

Cafe apologizes and changes its name

In response, the company issued a public apology and announced it would restore its full legal name, Yao Chao People’s Cafe, across all its 30 domestic outlets. The simpler name People’s Cafe will, however, remain in use at its overseas locations in Macau and Hong Kong.

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The management said it had not intended to offend or misuse politically symbolic language and that it would comply fully with the government’s request to modify branding.

Public reaction

The controversy triggered a wave of discussion on Chinese social media platforms, with many users questioning whether the cafe’s naming violated the law. One user wrote, “Isn’t that in breach of the law? Shouldn’t it be suspended and reorganised?”

Others mocked the situation, suggesting that patriotism has become a marketing tool. Some sympathised with the cafe, saying the government’s response was disproportionate to the issue.

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Still, the public rebuke underscores how closely business and politics intertwine in China, where branding or marketing perceived as politically inappropriate can trigger swift state intervention.

What this reveals about China’s “gimmick economy”

Analysts say the episode reflects a growing crackdown on what officials call the “gimmick economy,” businesses that exploit political slogans or nationalist sentiment to drive consumer engagement.

In recent years, authorities have issued repeated warnings against the commercial misuse of party symbols, red imagery, and other political references. The state has drawn a clear line between cultural patriotism and commercial exploitation.

For private enterprises, the message is clear: while nationalist themes sell, they must not blur the boundary between state ideology and business promotion.

TL;DR

A Chinese cafe named People’s Cafe was forced to apologize and rebrand after the government accused it of misusing the word “People,” which carries political significance in China. The cafe’s Mao-inspired decor and patriotic slogans were labelled part of a “gimmick economy.” It will now revert to its full legal name, Yao Chao People’s Cafe, across mainland outlets, though the overseas branches will retain the old name.