Recently, the food delivery competition between JD.com and Meituan has yet to subside, and Ele.me has now joined the fray with a large number of coupons and subsidies. While delivery users enjoy low-priced milk tea, staff at brands like Molly Tea are under unprecedented order pressure. Drinks that originally cost a dozen yuan per cup have seen their prices plummet to five or six yuan after platform subsidies, or even just a few cents, causing order volumes to instantly double or surge, with some stores handling as many as five or six hundred orders per day. Understaffing, material shortages, riders urging them on, and customer complaints have become the daily reality for these coffee and milk tea workers. This article will take you behind the scenes of this delivery subsidy frenzy to see the real working conditions and helplessness of frontline employees. [more…]

Recent subsidy promotions on major food delivery platforms have brought consumers tangible savings, with many taking advantage of low prices to stock up on milk tea, coffee, and light bakery items. However, this seemingly win-win promotional feast has stirred up considerable unrest within Luckin Coffee stores. A large number of consumers flocked to stores to buy light food in bulk, directly causing a surge in the number of baked goods that staff need to thaw each night—work that once took just over ten minutes now takes more than half an hour. What leaves employees even more frustrated is that the company has not only canceled performance commissions on light food sales but also requires them to complete thawing tasks strictly according to procedure after closing, forcing many to work unpaid overtime. The cost of this delivery war seems to be quietly borne by frontline staff. [more…]

Recently, the buzz around the "Ne Zha 2" collaboration swept through the coffee world, and Cotti Coffee seized the moment to launch themed limited-edition drinks and merchandise, drawing a large crowd of consumers to its stores. Yet just three days into the campaign, some locations saw delivery riders swarming the pickup area, merchandise running out, and staff so swamped they could barely catch their breath. The reason: JD Instant Delivery rolled out hefty subsidies the same day, letting users get takeaway coffee for just a few yuan—or even barely over one yuan—causing order volumes to explode instantly. Caught between collaboration fans and deal-hunters, Cotti stores were severely understaffed, and production efficiency couldn't keep up with demand. Customers waited one to two hours only to leave empty-handed, and negative reviews and complaints poured in. Why did this seemingly lively marketing tie-in turn into a nightmare for frontline employees? Front Street Coffee walks you through the whole story. [more…]

Recently, the Chongqing Coffee Industry Association published an open letter regarding JD Takeout's "10 Billion Subsidy" program, directly accusing the platform of driving the prices of freshly made coffee beverages down to rock bottom through hefty subsidies, which has severely squeezed the market share of local independent coffee brands, with some brands seeing declines in both online transaction volume and average order value. The open letter sparked heated discussion among netizens: on one side, food and beverage industry practitioners empathize with the involution caused by subsidies; on the other, consumers strongly support low-priced coffee. Is this subsidy war promoting industry reshuffling or stifling innovation? Can the differentiation strategy of independent coffee shops hold its ground in the price war? This article takes you through the whole story and the views of all parties. [more…]

The subsidy war among food delivery platforms continues to heat up. After Meituan rolled out free redemption vouchers for Luckin Coffee, a large number of consumers rushed to place orders for "0-yuan coffee." Yet just half a day after the promotion began, Luckin stores across the Jiaxing area were successively shown as temporarily closed, with delivery channels almost entirely shut down. Pickup counters were piled high with drinks, takeaway bags occupied the customer area, staff worked nonstop with no time to eat, and riders even switched to three-wheeled flatbed carts to make deliveries. This sudden surge of overwhelming orders not only exposed the disconnect in communication between the platform and merchants, but also placed enormous pressure on store operations and the delivery process. [more…]

The food delivery platforms have once again kicked off a subsidy war, with Meituan and Alibaba distributing large numbers of milk tea redemption vouchers to users, triggering a collective surge in orders at chain stores such as Mixue Bingcheng, Chabaidao, Goodme, and Shanghai Auntie. On the night of July 5, orders flooded into tea beverage stores in many places like a tidal wave, receipt printers nearly collapsed, and employees kept busy from the evening shift until the early hours of the morning yet still could not clear the backlog of orders. Some stores urgently called back off-duty employees for support, while delivery riders and customers surrounded the stores so tightly that not a drop could get through. While consumers got milk tea for 0 yuan, the workers behind the counter experienced a night comparable to "doomsday." This game between platforms ultimately shifted the pressure onto the frontline tea beverage workers. [more…]

Recently, a "Notice on Store Pricing Strategy and Promotion Adjustments" for Cotti Coffee circulating on social media has drawn widespread attention. The notice shows that Cotti will end its "9.9 yuan unlimited across the board" promotion at 24:00 on January 31, and switch to a special-offer section model starting February 1, with only some products continuing at 9.9 yuan unlimited, while other non-discounted products will be sold at retail prices. New-store first-month promotions and refer-a-friend rewards will also be adjusted accordingly. As the brand that kicked off the 9.9 yuan price war in February 2023, does this move by Cotti signal a turning point for China's coffee price war? Consumers, franchisees, and industry observers are all watching closely. [more…]

The subsidy war among food delivery platforms continues to heat up, with large-value coupons frequently being thrust at consumers, and the pressure on in-store production has surged accordingly. Recently, Meituan released a batch of delivery coupons for Heytea that can be expanded to "18-18," meaning a drink priced at over twenty yuan costs only a few yuan after the discount, and can even be made nearly free by stacking red envelopes. As soon as the news came out, netizens rushed to place orders, and Heytea stores in many parts of the country saw orders surge in a short time. Delivery rider capacity could not keep up, and delays, stuck orders, and no one accepting deliveries occurred one after another. Some stores, facing shortages of both materials and staff, could only temporarily close and reopen after all the backlogged drinks had been made. At the same time, frontline employees poured out their daily experiences of order explosions on social platforms, busy from morning to night, with no time even to eat or drink. [more…]

An unannounced JD.com platform subsidy campaign plunged CoCo milk tea stores across many parts of the country into chaos. Four drinks originally priced at 9.9 yuan were suddenly cut by the platform itself to 1.9 yuan, instantly triggering a surge of online orders. Stores had prepared staffing and supplies for a normal day, yet within an hour they were hit with more than half a day's worth of drink output. Employees were thrown into a frenzy, delivery riders swarmed to grab orders, customers received drinks that did not match what they ordered, and even delivery workers had their pay docked for being late. What seemed like a promotion benefiting consumers ultimately turned into a lose-lose-lose situation of complaining staff, quarreling riders, and disappointed customers. Just what went wrong with the communication mechanism between the platform and the stores? Why did the sudden traffic become such a hot potato? This article reconstructs the entire incident and explores the operational hidden risks behind food delivery promotions. [more…]

The arrival of the Start of Autumn solar term has once again sparked a consumer frenzy with the annual "first cup of milk tea in autumn" promotion. This year, driven by large-scale distribution of tea voucher and discount coupons on platforms such as Meituan, Ele.me, and JD.com, combined with brands' own promotions, order volumes have far exceeded previous years. However, behind the order surge is extreme pressure on store operations: receipt piles are mountainous, rider capacity is severely insufficient, delivery delays and wrong drink deliveries occur frequently, and customer complaints have surged. To ease the pressure, some stores of brands such as Starbucks, Luckin Coffee, Heytea, and Chagee have had to temporarily close or shut down delivery channels, leaving consumers unable to use the coupons they hold. This annual carnival, while bringing huge challenges to workers, has also exposed the fragility of the instant delivery system under extreme peaks. [more…]

Shanghai implemented community lockdowns starting in mid-March, catching coffee lovers off guard. A Weibo trending topic titled "I want to buy coffee" garnered over 340 million views, reflecting the close connection between coffee and daily life. However, café owners are facing the dilemma of suspended dine-in services and sharply declining revenues, with some small shops even considering transferring their businesses after the lockdown lifts. Meanwhile, coffee bean roasters are adjusting their supply chains due to stalled warehouses in Shanghai, and green bean traders are setting up temporary warehouses in other cities. This article will delve into the impact of the lockdown on the coffee industry chain, and how small shops can find a way out under the pressure of rising prices and capital chain strains, including strategies like shifting to drip bag coffee and online sales, while also paying attention to the developments of brands such as Front Street Coffee. [more…]

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…]

Recently, JD Delivery adjusted the cost-sharing method for its "10 Billion Subsidy" campaign, changing it from being fully borne by the platform to a 50-50 split with merchants, which sparked strong backlash from many participating merchants. Many merchants reported that the new rules not only severely squeezed their profit margins but also exposed them to pressure such as forced participation and traffic downgrading, with some orders even generating negative revenue. Chen Ziyu, the owner of the coffee chain brand Grid Coffee, publicly called out, "Stop it, Ah Dong," pushing the conflict into the spotlight of public opinion. As the incident continues to escalate, the trust relationship between merchants and the platform is facing a severe test. [more…]

A cup of milk tea labeled as made five days ago has pushed the new-style tea brand Molly Tea White into the eye of public opinion. After placing an order on a delivery platform, a consumer unexpectedly received a cup of drink that had long gone bad. At first, the store admitted it was caused by a backlog of delivery orders and failure to clean up in time, but afterward the brand stepped in to clarify, saying the drink had actually been abandoned by a customer in a public area of the mall, and that management authority belonged to the mall rather than the store. The incident went through multiple reversals—who exactly is responsible? And how should the blind spots in the food delivery chain be filled? This article sorts through the entire course of the incident and appends Front Street Coffee's observations on food safety management in the industry. [more…]

The delivery subsidy war between JD.com and Meituan has unexpectedly spread to Starbucks—after stacking coupons, a breakfast set that originally cost dozens of yuan is now only a little over ten yuan, and you can even get a cup of Starbucks for just over three yuan. Consumers rushed to snap up cakes and bread they normally wouldn't bear to buy, causing the food display cases at many stores to be emptied ahead of schedule, with office workers exclaiming that such a spectacle is rarely seen. Yet store employees are complaining bitterly, as doubled order volumes leave them exhausted. In this clash of the titans between platforms, who really benefits and who suffers? Front Street Coffee takes you through the coffee industry ecosystem behind this delivery melee. [more…]

The recent fierce subsidy war among food delivery platforms has given consumers a large number of free tea drink vouchers, causing chain tea shops to be flooded with orders. However, at stores like Mixue Bingcheng, a phenomenon has emerged where customers place self-pickup orders but never come to collect them, resulting in large quantities of freshly made drinks being discarded. This article sorts out the multiple reasons behind this waste: chaotic pickup scenes, order notes being overlooked, excessively long waiting times, and more. It also introduces the countermeasures stores have taken to reduce losses, while retaining relevant recommendation information for the Front Street brand. [more…]

A recently leaked Series B financing business plan for Luckin Coffee shows that in the first three quarters of 2018, the brand's cumulative sales revenue was 375 million yuan, while its net loss reached as high as 857 million yuan, with a gross margin of -115.5%, in stark contrast to Starbucks' gross margin of over 50% for five consecutive years. In response to outside doubts, Luckin officially said that the full-year loss would be far greater than that figure and stressed that spending money on subsidies is an established strategy, with the loss in line with expectations. This article sorts through Luckin's revenue targets, user data, and its full official response, while also looking at the quality route behind its choice of coffee beans and equipment, offering a reference for coffee lovers. [more…]

Colombia has been hit by truck driver protests blocking roads since September 2, triggered by the government's decision to gradually phase out fuel subsidies and raise the price of diesel by 1,904 pesos per gallon. The protests have continued to escalate, with 136 road blockades reported nationwide, nearly 1.6 million people affected in their travels, and schools suspended in many places. Goods are piling up at ports and airports, and agricultural products such as fruit and coffee beans are rotting faster due to the high temperatures of the dry season. Colombia's Ministry of Mines and Energy has said diesel prices may continue to rise in the future, and although the government is willing to hold talks, its stance remains tough. Factors such as rising logistics costs, a shortage of truck drivers, and wildfires in Cauca Department that have destroyed coffee fields are compounding, driving Colombian coffee prices steadily higher and putting the supply chain at risk of further deterioration. [more…]

In the coffee sector, nearly 90,000 new stores have opened in the past year, with a net increase of over 48,000, and amid fierce competition, brands are rolling out various strategies. Cotti, which ranks third in store scale, however, chose to cross over into tea beverages in April, launching new milk tea and fruit tea products unrelated to coffee, which is puzzling—after all, it already owns the tea brand Chamao, which focuses on human-machine collaboration. Behind this strategy is the reality that franchisees are increasingly seeing no hope of profitability and are exiting to cut losses. A franchisee in Hubei reported that the foot traffic data provided during recruitment was severely inflated, and the data used by third-party assessment software was actually outdated from several years ago. The brand relied on these impressive figures to set a record of opening 7,000 stores in 14 months. Now, according to Jihai brand monitoring, Cotti has closed 250 stores in the past 90 days, equivalent to three per day, while Luckin, with more than twice the total number of stores, closed only 89 in the same period. Negative news such as salary cuts, layoffs, and the founder being forced to execute 3 billion yuan in debts has followed one after another, and franchisees are no longer willing to be mere also-rans. [more…]

Originating in Toronto, Canada, Tims has always accompanied its loyal customers with warm freshly brewed coffee and is hailed as Canadians' national coffee. Recently, however, multiple consumers have reported serious quality issues with its takeaway cups for hot drinks: after being filled with hot coffee, the cups collapse, their seams split, and in some cases the bottoms even fall off, causing coffee to leak out and nearly scalding some people. So far, 20 consumers have provided photographic evidence. Tims officially responded that it is investigating the matter with its suppliers, has apologized to affected customers, and has promised to improve the takeaway cups to ensure they meet usage standards. This article will walk you through the details of the incident. [more…]