Spinelli Coffee Company has announced the closure of all six of its outlets in Singapore, marking the end of its 27-year presence in the city-state. This decision, reported by The Business Times on November 29, 2023, reflects the challenges faced by the American-style coffee chain, which is operated by Singapore-based YTC Corporation.

Employees at Spinelli Coffee confirmed that most outlets would cease operations by the end of the year, with signs already displayed at the two branches located at the National University of Singapore (NUS), indicating their last day of service will be December 15. Other branches, including those at Changi Business Park and One Raffles Quay, are also set to close, with official notices expected soon.

The closure follows troubling trends for Spinelli Coffee, as its sister brand, Daily Grind – A Spinelli Joint, has already shut all its locations in Singapore. According to financial filings, Spinelli Pte Ltd faced five consecutive years of losses from FY2018 to FY2022, although losses began to narrow in FY2020. The company reported a net loss of S$839,638 for the fiscal year ending December 31, 2022, an improvement from a loss of S$943,931 the previous year. Despite a revenue increase to S$1.8 million in FY2022, total liabilities stood at S$15.5 million, highlighting ongoing financial difficulties.

Founded in San Francisco in 1983, Spinelli Coffee made its Singapore debut in 1996 under a master franchise agreement with YTC Corp. At its peak in 2008, the chain operated 28 outlets across the island, positioning itself alongside competitors like Starbucks and Coffee Bean & Tea Leaf. YTC took full ownership of the Spinelli Coffee trademark in 2002, with aspirations for regional expansion, and established its own coffee roasting facility in Singapore.

The closure of Spinelli Coffee’s outlets comes amid a significant reshaping of the coffee landscape in Singapore, following the abrupt shutdown of Flash Coffee’s 11 outlets in October and the emergence of tech-enabled coffee brands. Companies such as Luckin Coffee, which opened 24 locations since its March debut, and major Indonesian coffee chains like Fore Coffee and Kopi Kenangan, are intensifying competition. Additionally, Canadian chain Tim Hortons has also entered the Singapore market, further challenging established players