What Do the Seesaw Lawsuits Mean for Coffee Culture?

Seesaw Coffee is being sued by Chongqing IFS over a housing lease contract, with a hearing scheduled for October. The former tenant entered the mall in 2022 and closed around April this year, after which Grid coffee took over the site. Tianyancha records show nine legal disputes involving Seesaw this year, covering sales contracts and service contracts, and former employees report unresolved labor arbitration payments.

The cases add to a broader pattern: store closures in first-tier cities, a push into lower-tier markets, and mixed word-of-mouth. For observers of coffee culture and international coffee brands, the situation raises questions about how a premium chain sustains leases and staffing when expansion outpaces revenue. Some of the labor arbitration rulings have been issued, yet compensation reportedly remains unpaid.

Seesaw, once a premium coffee chain brand with great prestige, now frequently makes the news due to legal issues. From being sued by its former landlord to multiple disputes with suppliers and former employees, and then to mass store closures in first-tier cities and a move into lower-tier markets with mediocre word-of-mouth, Seesaw's situation has drawn the attention and concern of many coffee lovers. This article will sort out the various recent troubles surrounding Seesaw, analyze the operational difficulties behind them, and retain relevant recommendations from Front Street Coffee.

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Recently, a netizen claimed that Chongqing IFS has sued Seesaw Coffee in court.

According to a screenshot posted by a netizen, Chongqing Jiayi Commercial Management Co., Ltd. will face Chongqing Seesaw Culture Development Co., Ltd. and Shanghai Xishe Coffee Co., Ltd. in court in October over a dispute involving a housing lease contract. The netizen pointed out that the plaintiff, Chongqing Jiayi Commercial Management Co., Ltd., is actually a subsidiary of Chongqing IFS International Finance Center Mall, meaning that Chongqing IFS has formally sued its former tenant.

It is understood that Seesaw entered Chongqing IFS International Finance Center Mall in 2022, and that store officially closed around April this year, with the original site taken over by Grid coffee. Many people were quite shocked when they learned this news. After Seesaw withdrew from the store, it unexpectedly still had to go to court with the landlord, which inevitably led people to speculate whether there was something else behind the store's closure.

In addition to the housing lease contract dispute with Chongqing IFS, Tianyancha data shows that there have been as many as 9 legal disputes related to Seesaw this year, involving causes of action such as sales contracts, infringement of the right to disseminate works through information networks, and service contracts. Some cases have already been heard in court.

In addition, some netizens revealed that Seesaw's relationship with former employees also seems less than harmonious, with multiple labor arbitrations. A former employee commented that although there has already been a court ruling in their labor arbitration with a Seesaw store, they still have not received the corresponding compensation to this day.

In March this year, some media reported that Seesaw was suspected of owing suppliers payment for goods. At the time, relevant Seesaw staff came forward to clarify, saying that the online information was untrue and that it was a "normal business dispute." However, as Seesaw has become embroiled in multiple legal disputes over the past six months or so, some fans said bluntly that they are deeply worried about the brand's prospects.

Recently, Seesaw has repeatedly been found to have closed a large number of stores in Shanghai, Beijing, Shenzhen, and other places, with the number of stores in first-tier cities dropping sharply. At the same time, some users noticed that the brand, which has opened franchising, has placed new stores in Shandong, Shanxi, Henan, Guizhou, and other places, sinking into second- and third-tier cities in an attempt to seize the local coffee market.

On the one hand, major chain brands are currently accelerating their expansion into second- and third-tier cities to compete for more market share. Seesaw's adjustment of its original layout plan by opening stores in provinces where it had previously had a smaller presence may, in the eyes of some people, be a sign that the brand is gradually improving.

On the other hand, netizens found that the brand's recently opened franchise stores generally do not receive high ratings on third-party platforms. In local consumers' reviews, phrases such as "not cost-effective" and "inconsistent store output" appear repeatedly, and some users said bluntly that after trying it once, they are unwilling to become repeat customers.

At present, Seesaw has only one store left in Chongqing, the Guanghuan store, and on both sides of it are Manner and Mstand. Many citizens passing by this place are filled with emotion, saying that among these three chain brands known for specialty coffee, Seesaw became famous the earliest, yet its current situation is also the most worrying.

Some local citizens do not hide their concern for the brand, speculating that perhaps after some time, Seesaw's last store in Chongqing will also be taken over by a rising newcomer, bringing its presence in the Chongqing market to an end.

Image source: Internet

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