Can specialty coffee brands expand through franchising?
Seesaw, a longstanding representative of China's specialty coffee sector, announced cooperative franchising on its twelfth anniversary. The brand closed stores in multiple cities late last year and now operates fewer than one hundred outlets, while Manner, M stand, Starbucks and Luckin keep adding scale. Partners apply through a questionnaire on the official mini-program and receive a response within five working days.
Founder Wu Xiaomei previously described the closures as planned operational adjustments. Industry observers read the franchise move as a search for new capital and market reach, and question whether it can stabilize the brand. For the coffee enthusiast, the case illustrates how smaller specialty coffee chains weigh franchising against company-owned growth as competition intensifies.
Seesaw, once regarded as one of the representatives of domestic specialty coffee, has officially announced the opening of cooperative franchising on its twelfth anniversary after experiencing a wave of store closures in multiple locations at the end of last year. This move has sparked much speculation about its financial situation and brand prospects. Competition in the coffee sector is becoming increasingly fierce, with similar brands such as Manner and M stand far exceeding Seesaw in store scale, while giants like Starbucks and Luckin continue to ramp up their efforts. Facing fewer than one hundred operating stores, Seesaw has chosen to seek market breakthroughs through franchising. Whether it can use this to stabilize its position and expand its customer base remains to be tested by time. This article will review Seesaw's recent developments and industry background for coffee enthusiasts' reference.
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As one of the representative brands in China's specialty coffee sector, Seesaw has found itself in rather unfortunate circumstances over the past six months. At the end of last year, the brand fell into a wave of store closures, with locations in multiple cities ceasing operations one after another, worrying many loyal customers. In response, brand founder Wu Xiaomei gave a direct response in an exclusive interview earlier this year, explaining that Seesaw's store closures in multiple regions were part of operational-level planned adjustments.
Nevertheless, consumers' concerns about Seesaw's prospects have not dissipated. Competition in the coffee market continues to escalate, with chain brands such as Starbucks, Luckin, Manner, and M stand all pushing to capture greater market share, either by penetrating lower-tier markets or by launching new products and forming new partnerships. By contrast, Seesaw has appeared rather quiet since the Spring Festival, barely making a splash.
It was not until recently that Seesaw, celebrating its twelfth anniversary, finally made a noteworthy move—an announcement on the homepage of its official mini-program about opening cooperative franchising. Interested partners simply need to fill out a questionnaire according to the instructions and will receive a response within five working days.
(Screenshot of Seesaw mini-program)
Some observers believe that Seesaw's decision to open franchising at this time is likely because, after the store closure turmoil, its number of operating stores has become noticeably low, and it urgently needs to expand store scale to turn the situation around. According to data from Zhaimen Canyan, Manner and M stand, which also position themselves as specialty coffee brands, currently have 1,174 and 526 stores respectively, while Seesaw's operating store count shows fewer than 100.
From this comparison, it is not hard to see that Seesaw's current survival space is being continuously squeezed by chain brands with denser store networks. Securing a place in such a fiercely competitive coffee industry is now far more difficult than before. Perhaps by opening franchising and extending stores to consumption scenarios such as airports and hotels, Seesaw at this stage can more effectively expand its market coverage and increase its customer base, while also aiding the brand's subsequent publicity and promotion.
However, many consumers remain reserved about this. Upon learning that Seesaw is opening franchise cooperation, some instead worry about whether this means the brand's capital chain has encountered problems, and it also brings to mind the previously rapidly fermenting yet quickly subsiding "Seesaw overdue payment" incident. According to media reports, the media had sought verification from Seesaw regarding this matter, and the person in charge responded that the rumors circulating online were untrue and constituted a "normal commercial dispute."
Previously, Wu Xiaomei mentioned in an interview that "Seesaw will maintain a steady expansion pace, focusing on first-tier and new first-tier cities in East China." This shows that the current franchising strategy may well be implementing the stance stated at that time, taking the step of franchise cooperation for store expansion and increased store density. Whether this move can, as Seesaw hopes, solidify the brand's position in the coffee market still needs time to provide the answer.
Image source: Internet
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The above content is compiled by CoffeeHunters, a coffee news website.
