So it looks like there are a lot of controls in regards to these cafes as some seem to have a bad reputation with a lack of a high quality business model. After reading some of the articles it seems as though the goverment may have eased slightly and a higher end, clean and responsible business model is needed to be able to expand to other groups and be an actual quality business. It is still an area that is growing in China and if they get the license to expand to other areas, then they could easily succeed as they will provide it as a franchise and help set up the business and training. I have to look a little more into Shenzhen, but it really does seem as their is a higher barrier to entry for these cafes, which says a good amount about the company. With it being a franchise and having the same unique layout in each helps establish brand recognition. Overall, more research is needed to verify their business model, revenue and income, but seems very promising. One thing also, it is hard to determine out of all of the cafes, how many franchises there are and how their setup is.
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