People had been lining up since early morning yesterday, some traveling from Suzhou and Hangzhou to stand in line for 30-45 minutes. Though the coffee brand's been sold for a while now in shops around Shanghai, this was their first brick and mortar venue in Mainland China, with another rumored to be in the works.
According to paper.cn, uniformed officers from Xuhui District showed up at about 3pm and "inquired" about the operation. Shortly afterwards, the shop closed, saying they'd run out of supplies. Authorities told a reporter that it was because it didn't have one of the necessary food licenses yet. Apparently % Arabica had applied for all the correct licenses, but opened before it got final approval. Not an uncommon practice. It's pronounced "soft opening."
About 1/3 of the line yesterday (apologies for cameraphone images)
The space itself can hold maybe 15 people sitting on a bench
As of this morning, the place was still closed with no word about when they might restart operations. Meanwhile, you can get your coffee just around the corner at Farine... oh.