What Does the Seesaw Crisis Mean for the Coffee Industry?

Seesaw, a Shanghai-based chain once seen as a leading name in specialty coffee, is now struggling with unpaid wages, unpaid supplier bills, and more than sixty economic disputes. Staff at its Shanghai IFC store still clock in each day but cannot make drinks because the company has stopped delivering beans, milk, and cups. A notice in four languages tells customers the store is closed and not accepting orders.

The trouble has been building since last year, when the brand closed stores across China, faced lawsuits, and saw its founder hit with high-consumption restrictions. Suppliers say they are owed from tens of thousands to over a million yuan. Employees keep showing up to avoid being dismissed for absenteeism, which could cost them the wages they are owed.

Seesaw, once hailed as one of the representatives of specialty coffee, is now mired in operational difficulties due to unpaid wages. Although employees at the Shanghai IFC store still show up for work on time, the company's delayed salary payments and cut-off supply of materials have made it impossible for them to prepare drinks, leaving them no choice but to post a notice in Chinese, English, Korean, and Japanese politely declining customer orders. From unpaid supplier payments to labor arbitration by former employees, from the founder being repeatedly subjected to high-consumption restrictions to more than sixty economic disputes, this former coffee star brand is experiencing an unprecedented crisis. Many loyal customers have expressed their regret, and some have called on the brand to handle employee rights with dignity.

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Recently, a Shanghai resident passing by the still-operating Seesaw store at IFC noticed a black sign with white text placed on the bar counter.

According to the photo taken, the notice reads "Closed Today" in Chinese, English, Korean, and Japanese. Below, in Chinese, it explains the reason: "Due to the company owing wages, the company is not delivering to the store, all materials are lacking, no GB beans, milk, cups, etc. Not accepting orders."

The netizen who posted revealed that in order to avoid being dismissed by the brand on grounds of absenteeism, which would prevent them from recovering owed wages as agreed, Seesaw staff could only clock in as usual each day to maintain the store's basic operations. However, due to the lack of various materials needed to make drinks, employees had to politely decline customer orders and suspend delivery services.

Seeing staff forced to strike, netizens aware of Seesaw's situation expressed their sighs over this chain brand. Since last year, after Seesaw was exposed for closing stores in multiple locations nationwide, being involved in numerous lawsuits, its founder being repeatedly subject to high-consumption restrictions, and the company owing employee wages and supplier payments, the company's business condition has been on a downward slope.

Previously, several suppliers interviewed by the media revealed that after cooperating with Seesaw, the brand owed them payments ranging from tens of thousands to over a million yuan, forcing them to seek recourse through legal channels. However, even after court mediation and reaching payment agreements with Seesaw, the brand still failed to comply, and those suppliers seeking to recover their debts have yet to receive the payments they are owed.

The same goes for former employees involved in legal disputes with Seesaw. Workers who were forcibly dismissed said that labor arbitration has ruled that the company illegally terminated labor contracts and ordered it to pay owed wages, but the brand has yet to deliver. Some employees applied to the court for enforcement, but the results were very limited, and the owed compensation remains unresolved.

According to Tianyancha information, there have been more than 60 economic disputes related to Seesaw, most of which have not been paid on time. This has also led to the brand founder being repeatedly subjected to high-consumption restrictions by courts, with 10 restriction orders received so far. In addition, some netizens noticed that another legal representative of Seesaw has also been subjected to high-consumption restrictions because the company failed to fulfill the payment obligations determined by legal documents.

More than a decade ago, Seesaw opened its first store on Yuyuan Road in Shanghai, winning the affection of many consumers with consistently good coffee. Since then, the brand has become widely known, attracting coffee lovers from all over to seek it out, becoming a white moonlight in their hearts.

Who could have imagined that Seesaw, once bearing halos such as "the Whampoa Military Academy of the coffee industry" and "one of the representatives of specialty coffee," would now fall to the point where employees are forced to strike over unpaid wages. Many fans, looking at the struggling "coffee star," cannot help but sigh with emotion: "I really loved going there back then," "No wonder I couldn't order delivery, such a pity," "The cup I drank two weeks ago might have been the last Seesaw of my life."

Beyond regret, some netizens expressed deep sympathy for the current employees who reluctantly posted the notice. In their view, since the store can no longer operate normally, the brand should settle the wages owed to workers and "close down with dignity," rather than using this to hold current employees hostage, leaving them only able to express their helplessness and dissatisfaction by "refusing customer orders."

Image source: Xiaohongshu

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