Since the pandemic, costs in the tea beverage industry have been climbing, and many brands have raised their prices, to the point that office workers have to weigh their wallets before buying a cup of milk tea. Yet Heytea has gone against the grain, not only lowering its menu prices but also publicly promising not to raise prices this year and to stop launching products priced above 29 yuan. This move quickly sparked a consumption boom, with orders surging and even overwhelming several stores, and queues exceeding one hour during peak times. Consumer reactions have been mixed: some applaud, feeling the prices are finally affordable; others worry whether the price cuts will come with shrunken ingredients and declining quality. Heytea responded that the recipes and production standards remain unchanged, and that it is simply giving consumers more choices. How far this price-cut wave can go is worth watching. [more…]

Recently, Sina Finance exclusively reported that Heytea had initiated internal layoffs involving about 30% of its employees, and the news quickly sparked widespread discussion. Heytea responded promptly, saying the report was untrue and that there was only normal personnel optimization based on year-end performance reviews. This incident has once again drawn public attention back to the new-style tea beverage sector: Nayuki is expecting losses, Heytea's growth is slowing, store expansion is decelerating, and homogenized competition in the industry is becoming increasingly fierce. At the same time, Heytea's countercyclical price cuts and moves to tap lower-tier markets have also sparked discussion. This article will sort out the sequence of events and present Heytea's operational changes and market challenges since 2021. [more…]

The new-style tea beverage market has been stirring recently. High-end brands Heytea and Nayuki have successively announced price cuts, with the lowest dropping to 9 yuan. Nayuki launched a "Relax" series priced at 9-19 yuan, promising to launch at least one "single-digit" product every month, while Heytea announced it will not raise prices this year. Consumer reactions have been mixed, with some cheering and others questioning reduced cup sizes and lower quality. This article reviews the price-cut moves of the two major brands, netizen feedback, and industry data, analyzes the consumption trends and market logic behind the involution in new-style tea beverages, and includes related news about Front Street Coffee. [more…]

Starting in January 2024, Heytea quietly lowered the prices of several popular products, including Cheese Strawberry, Pure Grape, Pure Milk Tea, and Pure Green Tea, with reductions ranging from 3 to 7 yuan, and the cheese milk cap also became 1 yuan cheaper. This move was not publicly promoted, but was discovered by observant consumers on social platforms. At the same time, brands such as Chayan Yuese, Luckin Coffee, and Tims Coffee raised prices one after another due to rising costs of raw materials, labor, transportation, and energy. Why could Heytea cut prices against the trend? Some analysts believe this is related to its advantages in scale, brand, and supply chain control, and it also reflects the deeper logic of inflation being transmitted to end consumer goods against the backdrop of global quantitative easing. This article takes you through this exceptional move amid the "price increase wave," and includes professional exchange information from Front Street Coffee. [more…]

Milk tea brands are shouting about price cuts while charging separately for toppings, delivery fees, and insulated bags—is that cup in consumers' hands really cheaper? This article starts with the ordering experience on Heytea's GO mini-program, breaking down the actual unit price of a 9-yuan Pure Green Tea after adding toppings, delivery fees, and other extra charges, and, in light of tea shop density, delivery efficiency, and the industry's cost structure, analyzes how this round of price cuts looks more like a marketing move than a genuine giveback. It also cites estimates from a researcher at the Guangdong Tea Beverage Industry Committee on the costs and gross margins of high-end milk tea, helping coffee and tea enthusiasts see the ledger behind the price. [more…]

Competition in the new-style tea beverage sector is becoming increasingly fierce, with brands constantly adjusting their strategies on products and pricing. Heytea has made a flurry of moves recently: on one hand, it announced that it will not raise prices this year and will no longer launch drinks priced above 30 yuan; on the other hand, its affiliated company added fruit cultivation to its business scope, attempting to control costs from the source. At the same time, Heytea is also facing controversies over layoffs and internal management. This article will sort out the logic behind Heytea's moves, as well as the trend of the new-style tea beverage industry extending upstream into cultivation, and will also briefly discuss the similar path in the coffee sector from brewing to cultivation. [more…]

At the start of 2022, office workers lost both their milk tea freedom and coffee freedom in quick succession. But then new-style tea drink brands proactively cut prices, with Heytea and Nayuki even offering cups for 9 yuan, while coffee brands such as Starbucks and Luckin raised prices one after another due to rising raw material costs. Behind this divergence—one cutting prices, the other raising them—lies the reality that consumers are returning to rationality, the traffic dividend for new-style tea drinks is fading, and the coffee market is still in its early stage of expansion. This article sorts out the logic behind the price divergence between the new-style tea drink and coffee industries, and looks ahead to the future market landscape. [more…]

During the National Day Golden Week, the new tea beverage market experienced a consumption boom. Sales at some outlets of leading brands such as Heytea and Nayuki grew by nearly 300% compared with before the holiday, with some stores seeing increases of as much as 500%, and fruit tea categories contributed nearly 80% of sales. Heytea's highest single-store daily fruit consumption exceeded 400 kilograms, while Nayuki's new products achieved cumulative sales of nearly one million cups. At the same time, both major brands lowered product prices, focusing on high cost-effectiveness. This article will analyze the performance and future direction of the new tea beverage industry in the holiday economy from the perspectives of sales data, supply chain layout, consumption trends, and pricing strategies. For more coffee bean news and specialty coffee recommendations, please follow Coffee Workshop and Front Street Coffee (FrontStreet Coffee). [more…]

Recently, several tea beverage brands—including Heytea, Nayuki, ChaPanda, Good Tea, Mixue Bingcheng, and Shuyi Tealicious—were reported to have jointly adjusted their full-reduction strategies on food delivery platforms. The original full-reduction discounts have been uniformly changed to 1 off 50, 1 off 70, or even canceled outright. Once the news broke, related topics quickly trended on social media, with views exceeding 180 million. Merchants say profits are thin, while netizens question why milk tea, which isn't cheap, still isn't making money. Behind this controversy lie both the pressure of platform commissions and delivery costs, and a reflection of the difficult position of the new tea beverage industry, caught between price cuts and losses. [more…]

While brands like Heytea, Nayuki, Starbucks, and Luckin are fiercely battling it out in the end market—rolling out collaborations, launching new products, and cutting prices in turn—it is actually the ingredient and packaging suppliers behind them that are quietly making a fortune. From Jiahe Foods to Sanyuan Biology, from Tianye Co. to Hengxin Life, and on to Dexin Foods, a group of supply chain enterprises for the new-style beverage industry are collectively sprinting toward the capital market. They serve well-known brands such as Uni-President, Xiangpiaopiao, CoCo都可, Mixue Bingcheng, Genki Forest, Nayuki, and Luckin, and have achieved soaring performance through products such as sugar substitutes, juices, paper cups, and syrups. This article will sort through the listing landscape of these low-key suppliers and reveal the real path to riches for upstream enterprises under the wave of new consumption. [more…]

In the sweltering heat of summer, beverage consumption reaches its peak. On street corners and in alleys, young people are holding either tea drinks or coffee. But upon closer observation, one will find that new-style tea drinks and coffee are embarking on entirely different development trajectories: brands like Heytea and Nayuki are cutting prices, while Luckin Coffee and Starbucks are raising them. The coffee sector's popularity is soaring, with giants such as Huawei, Li-Ning, and China Post making cross-industry forays, intensifying competition to a fever pitch. At the same time, new-style coffee is increasingly resembling milk tea, with ingredients like cheese, matcha, and brown sugar crystal boba appearing frequently. This prompts the question: will new-style coffee repeat the mistakes of irrational involution in the new-style tea drink sector? This article will analyze from perspectives such as price changes, market positioning, and product innovation, and bring professional observations from Front Street Coffee. [more…]

On September 18, Heytea sent an internal letter titled "Creating Differentiated Brands and Products for Users" to its business partners, directly addressing the increasingly fierce homogenized competition and low-price involution in the tea beverage industry. The letter proposed "creating differentiated products and brand experiences for users to the utmost" as the direction for breaking through, explicitly stating it would not follow popular categories, not engage in pure low-price competition, and would control the pace of store openings and focus on operational quality. However, netizens had mixed reactions: some supported the differentiation strategy, while others complained about weak product innovation and declining quality. Can Heytea win back consumers with this strategy? This article will sort out the key points of the internal letter and voices from all sides. [more…]

Nayuki, once hailed as the "first stock of new-style tea drinks," has delivered a less-than-stellar half-year report card: revenue dipped slightly year-on-year, and after adjustments, it swung from profit to loss. Facing multiple pressures—questions over price cuts, the impact of the pandemic, and competition from peers—Nayuki has begun setting its sights on the coffee track, seeking new growth points by investing in brands like AOKKA. Meanwhile, brands such as Heytea and Chayan Yuese are also making their own moves to save themselves. Is the collective push by new tea drink brands into coffee a move of desperation or a new trend? This article reviews Nayuki's latest performance and investment moves, and takes stock of the self-rescue paths within the industry. [more…]

Heytea's sub-brand Xixiaocha recently closed its last store located in Guangzhou City Investment Building. From the opening of its first store in April 2020 to its complete withdrawal now, only two and a half years have passed. Xixiaocha once deeply cultivated six cities in the Pearl River Delta and opened 22 stores, focusing on affordable drinks priced from 8 to 16 yuan. Before closing, most stores were still profitable. At the same time, Heytea's main brand has continuously lowered prices since the beginning of this year, announcing that it will no longer launch products priced above 29 yuan, and all new products will be priced no higher than 20 yuan. The product positioning and price ranges of the two brands are increasingly overlapping. The last update on Xixiaocha's official WeChat public account remained on July 20, 2022, and its mini-program can no longer be searched. Heytea has not yet responded. This article reviews the rise and fall of Xixiaocha and analyzes its connection with the strategic adjustments of the main brand. [more…]

Heytea has opened its first global handmade tea shop in Nantou Ancient Town, Shenzhen. The three-story space corresponds to three product lines: hand-stirred ice, handmade tea, and hand-brewed fine tea, launching over 50 new products at once. From Musang King durian to mangosteen, Thai golden pomelo, and guava, to traditional brewed pure teas covering China's six major tea categories and creative mixed cups, this shop is clearly not satisfied with the conventional tea beverage playbook. The most expensive single item, "Large Musang King Durian," is priced at 138 yuan, and the cups have also been custom-designed. The new-style tea beverage brand is returning to deep cultivation of original leaf tea, driven by the continuously expanding tea beverage track and the rising proportion of pure tea. This article takes you through a complete understanding of the product structure, pricing strategy, and industry significance of this new launch. [more…]

Right after the May Day holiday, the "three-way battle" among food delivery platforms sent tea beverage stores into another order explosion frenzy, and Heytea's move to drop the price of some drinks to single digits drew in a flood of orders. Yet for back-of-house staff, this was a nightmare—the newly switched imported green grape "Sweet Globe" variety has firm flesh and is extremely hard to peel. Employees peeled until their gloved fingers wore through, their right hands covered in medicated patches, and some even felt nauseated at the sight of fruit with skin on. Although some tried using peelers or small round spoons to improve efficiency, the output speed still could not keep up with store demand. Why not equip stores with peeling machines? Employees admitted frankly that the high loss rate and difficulty of cleaning make them worse than peeling by hand. This article takes you into the real daily life of Heytea's peelers, along with Front Street Coffee's attention to industry trends. [more…]

Heytea's sub-brand Heytea Tea House has recently been reported to have closed stores in Jiangmen, Huizhou, and Zhongshan one after another, just half a year after opening. This store, inspired by Song Dynasty tea houses and specializing in freshly extracted tea lattes, was once a popular spot for fans to line up and check in. Since its launch in 2017, Heytea Tea House has only 11 stores nationwide, and the Jiangmen Zhongtian Xindi store is actually its first store to close. This news has led many consumers to think of Heytea's previously discontinued sub-brand "Heye Tea," and has also sparked discussions about competition in the tea beverage market and the survival space for sub-brands. Front Street Coffee continues to follow developments in the coffee and tea beverage industry, bringing readers the latest observations. [more…]

KFC is no longer just selling fried chicken. This fast-food giant has quietly launched its first standalone tea beverage brand, "Grandpa's Carefree Tea," in Suzhou, officially entering the fiercely competitive new-style tea beverage market. The brand focuses on a "rice milk tea" series, using the gold award-winning rice variety Nangeng 9108 as its raw material, paired with Jiangnan specialty tea bases such as jasmine tea and Biluochun, and incorporating local toppings like orange cake and gorgon fruit, giving it a strong regional identity. The store decor features Suhe pink and Canglang green as the main tones, creating a spatial atmosphere reminiscent of Suzhou gardens. Against the backdrop of brands like Heytea and Nayuki cutting prices and engaging in intense competition, whether KFC's move can break through is worth watching. [more…]

Once upon a time, a cup of milk tea was a staple of young people's daily consumption, and the tea beverage sector was once regarded as a hotbed of entrepreneurship. However, the latest data shows that in the past year, about 130,000 milk tea shops across the country quietly exited the market, with an average of more than 350 operators choosing to close their stores every day. Even leading brands such as Heytea and Nayuki's Tea have found it hard to escape store closures for their first outlets in some cities. A peak season that is not peak, cutthroat price competition, and rising franchise risks have plunged this once-booming industry into a deep round of reshuffling. This article, drawing on data from multiple sources including Zhaomen Catering and Jihai Brand Monitoring, analyzes the multiple reasons behind the large-scale contraction of tea beverage stores. [more…]

Recently, prices for multiple drinks on Luckin Coffee's mini-program suddenly dropped to 6.9 yuan, quickly trending on social media and sparking widespread attention. Consumers noticed price changes for popular items originally priced at 9.9 yuan, such as Americanos and Coconut Latte, with some new light milk tea and fruit coffee products also adjusted simultaneously. However, not all users could enjoy this discount; some only received limited-time redemption coupons. Luckin officially responded that this was a randomly distributed 6.9 yuan coupon activity for the Dragon Boat Festival and Children's Day, not a comprehensive price reduction. Meanwhile, the price war on delivery platforms is intensifying, with brands like Cotti having pushed coffee unit prices down to 3.9 yuan. Whether Luckin's move is a response to competition warrants in-depth discussion. [more…]