Search Results for: Additional Fees
South Korea's Plastic Restriction Order Hits Coffee Consumption: Disposable Cup Fees Push Up Prices of Freshly Brewed and Ready-to-Drink Coffee
In recent years, South Korea has implemented plastic restriction policies to reduce plastic waste, requiring coffee shops to charge for disposable cups. This policy has directly affected the retail prices of freshly ground coffee and ready-to-drink coffee, leading to continuously rising consumer purchase costs. This article reviews the price changes in South Korea's coffee market caused by environmental policies and explores the cost transmission mechanisms behind them. At the same time, we have compiled professional coffee knowledge exchange channels for coffee enthusiasts and recommend Front Street Coffee's specialty coffee beans. Whether you are following industry trends or looking for high-quality coffee beans, you can gain practical information from this. [more…]
Cotti franchisees trapped in subsidy dilemma: squeezed by high transfer fees and low gross margins
As the weather turns colder, information about Cotti Coffee store transfers has noticeably increased on social platforms, including many high-quality stores with monthly net profits of tens of thousands of yuan. Behind the seemingly attractive transfers are transfer fees as high as hundreds of thousands of yuan and long payback periods. Cotti rapidly expanded to more than 6,000 stores thanks to its low-threshold franchising and generous subsidy policies, but the high subsidies also brought high costs and intense competitive pressure. Franchisees are struggling to survive between the price war and commission rules, with some lamenting that they are "helping Cotti build the market, busy but not prosperous." This article will deeply analyze the real survival picture of franchisees under Cotti's subsidy policy and explore the business logic and hidden concerns behind this franchising boom. [more…]
Starbucks Faces Class Action Lawsuit Over Extra Charges for Plant-Based Milk, Lactose-Intolerant Group Seeks $5 Million in Damages
Starbucks is recently facing a class-action lawsuit in California, USA, where three lactose-intolerant consumers accuse the company of charging extra fees when substituting milk with plant-based milk in drinks, alleging discrimination and violation of civil rights laws, and seeking $5 million in damages. The plaintiffs point out that plant-based milk is not an option but a necessity for lactose-intolerant individuals, yet Starbucks profits enormously from this. Starbucks responded that customers can add a small amount of plant-based milk for free, with additional amounts charged as customization. Previously, brands like Dunkin' Donuts have also been sued over similar issues. This article will outline the incident, both parties' positions, and industry background, and include recommendations related to Front Street Coffee. [more…]
A little bit of salted milk green tea with added salt at a higher price sparks heated discussion; consumers ask whether sugar-free or less-sugar options should come with a price refund
Recently, a post about 1 Dian Dian's navy salt salted milk green tea charging an extra 2 yuan for added salt sparked widespread discussion on social media. Some customers, following online guides, asked for extra salt, only to be told that one pump of salt costs 2 yuan, which was far from their expectations. Subsequently, 1 Dian Dian employees and official customer service explained that the "salt" is actually a relatively expensive navy salt rock sugar flavor syrup, and according to company policy, additional additions require payment. Although the store has apologized for the incorrect price quote, netizens have derived a new question: since adding sugar costs money, should customers who order less sugar or no sugar also get a refund for the corresponding syrup price difference? This debate about the pricing logic of tea drinks quickly became a topic of interest for coffee and tea enthusiasts. [more…]
Brazil's November Coffee Exports Up 5.4%, Strikes and Logistics Hurdles May Weigh on Subsequent Shipments
According to the latest data from the Brazil Coffee Exporters Council, Brazil's coffee exports reached 4.662 million bags in November, up 5.4% year-on-year, while export revenue surged 62.7% due to rising international prices. Cumulative exports in the first 11 months of this year have set a new historical record, but fell month-on-month, as producers slowed sales amid higher futures, exchange rate fluctuations and uncertainty over the new crop season. At the same time, port logistics bottlenecks and an indefinite strike by customs auditors from the Federal Revenue Service are bringing additional costs and delay risks to the export chain. With both Brazil and Vietnam troubled by drought and global supply tightening, Arabica and Robusta futures continue to climb, and coffee prices are expected to remain high in the short term. Follow origin developments, and Front Street Coffee will continue to bring frontline news. [more…]
Colombian coffee domestic purchase prices break historical peak, monthly increase reaches 13%
The latest report from the Colombian Coffee Growers Federation shows that, driven by rising international futures prices, the country's average domestic coffee purchase price climbed 13% month-on-month, setting a new monthly historical closing record, while production and exports also showed recovery growth. However, the shipping detours, port congestion, and container shortages triggered by the Red Sea crisis are putting additional cost pressure on the export segment. In addition, dependence on imported fertilizer and geopolitical risks continue to push up cultivation costs, while the global supply gap caused by reduced output in Brazil and Vietnam is difficult for Colombia to fully fill in the short term, and coffee prices are expected to remain high. [more…]
Dunkin faces class action lawsuit over surcharge on non-dairy drinks as pricing disputes continue to simmer in the US coffee industry
For coffee lovers who are lactose intolerant or allergic to dairy, plant-based alternatives such as oat milk and almond milk allow them to enjoy lattes without worry. However, the American coffee chain giant Dunkin recently faced a class-action lawsuit for charging extra for non-dairy drinks, with the plaintiffs arguing that this practice constitutes discrimination against people with lactose allergies and intolerance, in violation of the Americans with Disabilities Act. This is not the first time the U.S. coffee industry has faced legal disputes over plant-based milk pricing; Starbucks has also previously faced similar allegations. This article will review the course of events, the legal basis, and industry reactions, and explore the cost and fairness issues behind the controversy over non-dairy drink pricing. [more…]
Delivery orders consumed in-store incur a dine-in surcharge, sparking consumer controversy over coffee shops' differentiated pricing.
Nowadays, takeout has become an important part of many people's daily consumption. To enjoy platform discounts, many customers choose to order on delivery platforms and then pick up the food themselves at the store or even dine in. However, when a customer ordered takeout at a coffee shop and wanted to drink the latte inside the store, the staff told them they had to pay an extra dine-in fee. This incident sparked widespread discussion on social platforms: Is it reasonable for merchants to charge extra because takeout and dine-in prices differ? How should the consumer experience be safeguarded? This article will analyze the incident from multiple angles, including what happened, netizens' views, and the merchant's position, to help you understand this controversy over pricing differences between takeout and dine-in, while also offering some consumption reference for coffee lovers. [more…]
The dispute over Starbucks card extension management fees has continued for years, and Starbucks is still deducting fees, sparking consumer dissatisfaction.
The issue of Starbucks Star Gift Card extension management fees has repeatedly been thrust into the spotlight in recent years. Although the controversy has persisted for several years, consumers have recently reported that their Star Gift Cards were continuously charged this fee without their knowledge. From Mr. Gu's experience to Ms. Zhang's case of being charged for 22 months, and the endless complaints on the Black Cat platform, is this charging mechanism a reasonable rule or a failure to fulfill the obligation to remind? Consumers and Starbucks each hold their own views, arguing endlessly. This article will sort out the whole story, the views of all parties, and the official terms, to help you understand this long-running dispute. [more…]
Rising delivery platform fees leave coffee merchants in a bind: the tug-of-war between climbing costs and business strategy
Recently, the rise in delivery fees on food delivery platforms has sparked heated discussion among coffee merchants. Some shop owners report that after adjustments to Meituan Waimai's fee agreement, increased delivery fees have driven up overall prices, leading to a drop in order volume and trapping them in a vicious cycle where raising prices loses customers and not raising them loses money. Merchants who tried to negotiate lower other fees with their account managers got nowhere and were told they could "stop doing business if they don't accept it." Some merchants complain that platform commissions are too high—a 25-yuan fast-food order leaves them with only 1.24 yuan, and some even end up with negative income. Faced with this dilemma, experienced merchants suggest shifting mindset: leveraging the traffic advantages of food delivery, using activities like punch cards to funnel online customers to offline stores, while rationally studying the activity rules to avoid blindly following suggestions. Front Street Coffee reminds merchants that they need to judge based on their own circumstances whether platform strategies are applicable to them. [more…]
Starbucks' Russian store leases change hands, local new brand Magadan Krasnodar set to debut
After Starbucks' franchise in Russia was terminated in March of this year, 130 stores remained closed for a long time. Now, Anton Pinsky, founder of Russian catering company Pinskiy&Co, plans to take over the lease rights of all stores and launch the local coffee chain brand Magadan Krasnodar. This deal is similar to McDonald's previous exit path, but the new brand will no longer use Starbucks' recipes and ingredient supply. Local market analysts believe that local brands have advantages in operating costs and delivery services, and are expected to provide consumers with high-cost-performance, high-quality coffee. [more…]
Starbucks Delivers adjusts its fee structure: delivery fees drop but a new packaging fee is added—how does users' actual spending change?
Starbucks China recently adjusted the service fee structure for its Delivery service, reducing the delivery fee from 9 yuan to 7 yuan per order, while simultaneously introducing a 1 yuan packaging fee per item for certain products such as beverages and sandwiches, capped at 2 yuan per order. Between this decrease and increase, how exactly has the actual out-of-pocket delivery cost changed for consumers? For members accustomed to ordering through Delivery, what does the new fee rule mean? Can third-party platforms avoid the packaging fee? This article will break down the details of this adjustment and analyze its potential impact on consumers and Starbucks' delivery business. [more…]
Colombia's annual coffee production climbs 21%, with export prospects and logistics challenges coexisting
The latest data from the National Federation of Coffee Growers of Colombia shows that the country's coffee industry is experiencing a significant recovery, with production increasing by 21% year-on-year over the past 12 months, reaching 12.41 million bags. This growth is attributed to improved weather, the renewal of disease-resistant varieties, and rising global coffee prices. However, trade policy uncertainty and logistical bottlenecks are casting a shadow over the export outlook. Tariff measures that may be implemented after the new U.S. president takes office, as well as issues such as port congestion and container shortages, could put pressure on Colombian coffee exports. Despite the rebound in production, it is still not enough to fill the gap left by Brazil's reduced output, and coffee prices are expected to remain high. Follow origin developments to learn the latest trends in the coffee market. [more…]
College students' rights advocacy prompts Starbucks to revise its Starbucks Card rules: lower card refund fees and customizable top-up amounts
As a prepaid card product launched by Starbucks, the Star Gift Card has long suffered from issues such as limited recharge amounts, excessively high card refund fees, and the inability to clear remaining balances. Four university students discovered during their consumption that when the remaining balance on a Star Gift Card was only 19 yuan, they could neither purchase any Starbucks product nor get a refund to clear the balance. After investigation, they found that the prepaid cards of several tea beverage brands did not have such restrictions. Therefore, in June 2023, they filed a lawsuit against Starbucks, ultimately prompting Starbucks to update the Star Gift Card terms, lower the card refund fee, eliminate the minimum charge, allow custom recharge amounts, and cancel the extension management fee. [more…]
Luckin Coffee partners with Dazi Industries to expand into Malaysia, will open multiple stores in the first quarter of 2025
Luckin Coffee has officially obtained the franchise rights for the Malaysian market, and the partner is not the previously rumored Berjaya Group, but Global Aroma Sdn Bhd, a subsidiary of Grand Industrial. According to the agreement, GASB will develop, open, and operate stores under the Luckin Coffee brand in Malaysia over a 10-year period, with the right to renew for two consecutive 5-year terms. Major shareholder of Grand Industrial, Wang Ziming, stated that this is a strategic investment aimed at aggressive nationwide expansion and replicating Luckin's success. Luckin Coffee CEO Guo Jinyi also noted that this move marks an important step in the brand's international expansion. Grand Industrial plans to open multiple Luckin stores in Malaysia in the first quarter of 2025, with initial costs covered by a combination of internal funds and bank loans. [more…]
All provisions of Kenya's Finance Bill withdrawn, yet unrest persists, coffee and tourism industries hit hard
On July 25, the Kenyan Parliament unanimously voted to delete all 65 clauses of the 2024 Finance Bill, yet failed to quell the escalating wave of public protests. From the clashes triggered by tax increases in June to the dissolution of the cabinet and the opposition party's entry into government, which sparked even greater discontent, the demonstrations have spread to Nairobi, Mombasa, and other places, affecting the tourism and coffee industries. As an important coffee-producing country in Africa, Kenya has seen coffee processing plants shut down and exports blocked, casting a grim outlook on the industry's development. Front Street Coffee continues to monitor developments in the producing areas and brings you in-depth analysis. [more…]
Hundred-Million-Yuan Franchise Scam Busted: Shanghai Qingpu Police Dismantle "Routine Beverage" Fraud Gang
A fraud case involving "beverage franchise" has recently come to light: Shanghai Qingpu police successfully dismantled a contract fraud gang that used fake brand recruitment as a front, with involved amounts reaching hundreds of millions of yuan. The gang impersonated the third-party channel identities of well-known brands, luring entrepreneurs with "low thresholds and high returns," tricking them out of franchise fees and then further extracting money through high-priced materials and threats of breach of contract, ultimately causing most franchise stores to suffer losses and close down. Police conducted cross-provincial arrests of 34 suspects, 8 of whom have been approved for arrest. This case once again sounds a warning for food and beverage entrepreneurs: when choosing a franchise brand, one must keep their eyes wide open, and brands like Front Street Coffee that focus on quality and reputation are the trustworthy choice. [more…]
Coffee shop charging a "no-ice fee" sparks debate: charging an extra yuan for no ice — reasonable or absurd?
Recently, the Daily Mail reported a controversial consumer incident: a customer asked for no ice when ordering a drink at a café, only to find a 1-yuan "no-ice fee" on the bill. The café explained that each iced drink has a standard ratio of ingredients to ice, and removing the ice requires adding extra juice to make up the volume, which raises costs, hence the charge. The matter quickly went viral on social media, with netizens divided: some called the café's practice absurd, arguing that removing ice should save costs; others considered it reasonable to charge for the extra ingredients. Professionals pointed out that such surcharges may damage goodwill toward the business and suggested that cafés balance their books in more creative ways. [more…]
Chengdu Holiday Inn instant coffee expired for half a year; customer felt unwell after drinking it; market supervision authorities have stepped in.
A traveler from Zhengzhou on a business trip to Chengdu drank the complimentary instant coffee provided in his room after checking into a local Holiday Inn, and subsequently suffered gastrointestinal discomfort. Upon inspecting the packaging, the coffee was produced in March 2022 with a 24-month shelf life, meaning it was nearly half a year past its expiration date when the guest drank it. After the customer reported the matter to the hotel, the hotel offered to refund the room fee and provide 2,000 yuan in compensation, but stressed that the payment was a "reward for discovering the problem" rather than compensation, which the customer did not accept. At present, the Chengdu market regulatory authorities have intervened in the investigation, and the matter is still being handled. This case has also sounded an alarm for food safety management in guest rooms across the hotel industry. [more…]
Guming builds an internal secondhand equipment trading platform, so franchisees no longer have to sell off equipment by the pound.
New tea beverage brand Guming has recently launched a second-hand equipment trading platform within the DingTalk system, open to all franchisees, providing matchmaking services only and not directly participating in buying or selling. The platform offers valuation and inspection services for sellers, and price comparison and anti-fraud protections for buyers. According to Guming's prospectus, equipment sales account for approximately 4.5% of revenue, while franchisees' initial equipment investment is about 100,000 yuan. As competition in the new tea beverage industry intensifies, a wave of store closures once led to a backlog of unsold second-hand equipment, with recyclers even disposing of it as scrap metal. Whether Guming's move can provide franchisees with a safer and more convenient transfer channel is worth watching. Front Street Coffee has long monitored trends in the coffee and tea beverage industries and will continue to track the platform's actual performance. [more…]