(Yicai) Jan. 22 -- An iconic Shanghai bakery chain that went out of business three years ago during the Covid-19 pandemic has opened its first new store under new ownership.

Ichido began trial operations at its new shop in the city’s Xuhui district yesterday. But instead of selling breads, pastries, and cookies, staff were seen handing out e-coupons to customers in exchange for their old vouchers.

Ichido's main strategy in the past was to attract customers with vouchers. Since 2016, it had issued CNY50 million (USD6.9 million) worth, with around CNY20 million unused, founder Cai Bingrong said around the time it shuttered.

Founded in 1999, Ichido was well known for its wide array of bakery products. By 2020, it had expanded to 135 stores across the city. Like many businesses, it then struggled in the pandemic due to lockdown measures and financial strains. Unable to pay wages and its suppliers, the chain closed down in mid-2021.

Shanghai-based Xinfu Food, formed last June with registered capital of CNY1 million (USD137,525), is the bakery's new owner after taking over its trademark and management rights.

Baked goods are expected to hit the shelves in early March, with some of Ichido's signature products making a return, according to an employee at the new store. Home deliveries will also be available via a WeChat mini-program, the person added.

The reopening of Ichido brings opportunities and challenges, branding expert Zhan Junhao told Yicai. The brand enjoys a certain level of recognition and a customer base, making it easier to gain market acceptance compared with establishing an entirely new brand, Zhan pointed out.

But reviving a brand that went out of business due to financial issues involves overcoming a crisis of trust, restoring consumer confidence, and adapting to changes in the market environment, including the rise of competitors and shifts in consumer preferences, Zhan also noted.

Editors: Dou Shicong, Martin Kadiev