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Barista Origin and Staffing: Manner Social Insurance Inquiry

June 25, 2024
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Why does barista origin and staffing matter in the Manner inquiry?

Manner Coffee drew new scrutiny after its number of employees enrolled in social insurance appeared to mismatch its store count. Business registration data for parent company Shanghai Yinhe Industrial Co., Ltd. shows 1,225 people enrolled in 2023, while public data counted 1,295 Manner stores as of June 10. The Human Resources and Social Security Bureau enforcement team visited the company.

Manner said it operates a comprehensive working hours system and denied failing to sign contracts, pay social insurance, or withhold overtime pay. The brand also addressed leaked videos, store staffing, and employee treatment, admitting the one-person store problem is complicated while promising to improve baristas' working comfort. The case reflects wider labor issues in the coffee industry.

Recently, Manner Coffee has once again become the focus of public attention due to a mismatch between the number of employees enrolled in social security and the scale of its stores. Shanghai Yinhe Industrial Co., Ltd. had only 1,225 people enrolled in social security in 2023, while Manner has more than 1,295 stores, raising public suspicion about whether it has paid social security in full for all employees. The enforcement team of the Human Resources and Social Security Bureau has visited the company for investigation. Manner responded that it implements a comprehensive working hours system and that there is no situation of not signing contracts, not paying social security, or withholding overtime pay. In addition, the brand responded to topics such as the leak of videos, store staffing, and employee treatment, admitting that the problem of one-person stores is complicated, but promising to improve the working comfort of baristas. The incident continues to escalate, bringing common problems in the industry to the surface.

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The aftershocks of the sensational "Manner incident" in the coffee circle have not yet subsided, and the brand has fallen into a new round of controversy because the number of employees enrolled in social security does not match expectations. This morning, the topic #HumanResourcesBureauEnforcementVisitToManner# quickly topped Weibo's hot search list, sparking widespread discussion.

Southern Metropolis Daily reported that business registration information for Manner's parent company, Shanghai Yinhe Industrial Co., Ltd., shows that the company was established in October 2015 and had 1,225 people enrolled in social security in 2023.

However, public data shows that Manner opened its 1,000th directly operated store last October and had set a goal of 2,000 stores. Data from Zhaomen Canyan shows that as of June 10, "Manner Coffee" had 1,295 existing stores.

Although over the past six months, in order to alleviate labor shortages, stores in many places across the country have recruited part-time staff, even if only 1 to 2 full-time employees are allocated per store (in reality, some large stores can have 3 to 5 employees), the number of people enrolled in social security is still far lower than the actual total number of employees. This has led many netizens to question whether Manner has paid social security in full for all employees.

A reporter learned yesterday when visiting Manner's company headquarters in Jing'an District, Shanghai, that the enforcement team of the Human Resources and Social Security Bureau had already visited the site that morning to conduct an on-site investigation.

Manner questioned over social insurance enrollment numbers, human resources bureau enforcement team visits for inspection

After the investigation, the enforcement department told the reporter: "The company (Manner's parent company) says it implements a comprehensive working hours system with a quarterly cycle, arranges compensatory time off according to regulations, and pays overtime pay. There is no situation of not signing labor contracts, not paying social security, or withholding overtime pay. Our enforcement team has asked the unit to submit written materials as soon as possible, and the specific content is under further verification."

It is understood that on the day of the investigation, a staff member who claimed to be responsible for Manner Coffee's media affairs also responded to issues of recent public concern.

Regarding the source of the three videos circulating online, the staff member said: "We have reached an internal conclusion, but it is not convenient to disclose it." In response to the unreasonable staffing allocation in stores and the problem that some stores have only one employee, he replied: "One-person stores may be adjusted later, but this is a very complex operational issue, and it is impossible to immediately increase from one person to two."

When asked about the treatment of frontline employees, the interviewee said: "This is actually a common problem in the current chain coffee industry, but we have also conducted research, and Manner Coffee's salary level is in the upper-middle range across the entire industry." Regarding future employee treatment, he said: "The company will have specific measures to improve baristas' working comfort."

Image source: online screenshots, The Beijing News

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Manner questioned over social insurance enrollment numbers, human resources bureau enforcement team visits for inspection

The above content is compiled by CoffeeHunters, a coffee news website.

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