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…]

Recently, news about Luckin Coffee opening franchises has been circulating online, drawing attention from many consumers and entrepreneurs. However, Luckin officials quickly clarified: no form of franchise cooperation is currently open, and all so-called franchise and agency information is false. From counterfeit stores in Bangkok, Thailand to scam tactics using homophone accounts, the knockoff problem keeps emerging. This article will sort out the key points of Luckin's official statement, the history of the Little Deer Tea brand's merger, and insiders' interpretation of the franchise suspension, to help coffee lovers and potential investors distinguish truth from falsehood and avoid traps. [more…]

Recently, pages posing as the official Luckin Coffee website have appeared online, publishing franchise information and drawing the attention of many coffee enthusiasts. However, Luckin Coffee has long clearly stated that the brand operates on a direct-management model and does not accept franchising in any form. This article will expose the tricks of these fake franchise websites, sort out Luckin Coffee's operating entities and store types, and help readers identify scams to avoid financial loss. At the same time, Front Street Coffee also reminds everyone that investing in the coffee industry requires carefully verifying official information. [more…]

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…]

Recently, Coffee Post issued a stern statement regarding fraudulent franchise recruitment activities in the market that falsely use its brand name, explicitly stating that it has never authorized any third party to engage in franchise cooperation and has initiated legal proceedings to pursue accountability. This incident has once again thrust this coffee brand—jointly created by China Post and Zhongyu Kaye—into the spotlight, and also reflects the market chaos behind the continuously heating coffee track. This article will sort out the sequence of events, the brand's operational structure, and future layout challenges, helping readers clarify the facts and avoid falling into the trap of "fake" operators. [more…]

A tea beverage and gaming collaboration that was originally highly anticipated came to an abrupt halt on the day of its official announcement. On December 14, Light and Night announced a co-branded new product with Auntea Jenny, but employees at some stores were exposed for insulting players and game characters. Related topics quickly topped the hot search list, with views exceeding 450 million. Just three hours later, the game developer urgently stated that the collaboration was terminated, which netizens jokingly called "the shortest collaboration in history." Auntea Jenny subsequently apologized and fired the employees involved, but players were not appeased. This incident not only exposed the brand's loopholes in franchise management, but also sounded a warning bell for cross-industry collaborations. [more…]

On February 14th of this year, the nation's first post office coffee shop opened its doors in Xiamen, and within just two days it made it onto Weibo's trending topics, drawing a great deal of attention. Along with the buzz came a flood of various "post office coffee franchise" information online. In response, China Post, Xiamen Post, and Post Coffee officially issued statements one after another, clearly stating that currently only self-operated stores have been opened and that a franchise model has never been offered. At the same time, the trademark applied for by Zhongyu Jiaye, the company cooperating with the postal service to open coffee shops, is also in an invalid status. This article will sort out the ins and outs of the incident to help coffee lovers distinguish truth from falsehood and avoid falling into fake franchise traps, and will also include professional coffee information channels such as Front Street Coffee. [more…]

Milk tea shops line every street and alley, yet the same brand can taste wildly different from one store to the next—because a large number of counterfeit outlets lurk behind the scenes. The genuine The Alley has only just over a hundred directly operated stores, while copycat versions number more than seven thousand, forcing the brand to spend hundreds of millions fighting counterfeits. Many entrepreneurs naively trust online franchise information and fall into copycat traps, losing anywhere from hundreds of thousands to over a million yuan. This article reviews trademark infringement cases reported by CCTV, exposing the common tricks of counterfeit franchising, as well as the story of how Heytea was forced to change its name because of rampant imitation, reminding consumers and entrepreneurs to keep their eyes open. [more…]

A bubble tea franchise store in Wuxi appears to run community group buys and membership top-ups on the surface, but behind the scenes it is suspected of large-scale fraud. Over a thousand local people have fallen victim, with transaction flows of nearly 200 million yuan, and even people in Shanghai, Zhejiang, Anhui and other places have been caught up in it. Even more surprisingly, the operator had compulsory measures changed because of pregnancy, and afterward continued to operate and keep selling low-priced products. The brand owner eventually announced the termination of cooperation and removed the signage, but the store changed its name and still opened as usual, and was still constantly hiring. What exactly is going on? What should ordinary consumers and job seekers pay attention to? [more…]

What would you do if a sudden, large group-building order landed at your coffee shop? A shop owner in Tianjin recently encountered just such a stroke of "good luck," only to see through the scam at the last moment and pull out in time. This kind of order fraud targeting independent coffee shops and small food and beverage businesses is nothing new. Scammers pose as schools or companies placing group-building catering orders, first lulling the owner into lowering their guard, then setting a trap by asking them to buy gifts on the scammer's behalf or advance payment for goods. Some even use transfer money-laundering schemes to leave the owner with neither money nor goods. This article compiles the real experiences of several victims and shares the key precautions summarized by peers in the industry, to help coffee operators stay clear-headed when facing large orders and avoid becoming a sucker who hands money to scammers. [more…]

Recently, a capsule coffee self-service machine under the Starbucks banner has been popping up frequently in shopping malls, office buildings, subway stations, and other locations. With prices starting at 9.9 yuan, it has tempted many consumers to give it a try. However, a line of small print on the machine body reveals its connection to Nescafé Dolce Gusto, and some devices even carry franchise investment information. Both Nestlé and Starbucks China have responded, denying that the device is an officially authorized project. Who exactly is operating this "Starbucks self-service coffee" that has spread across many places? And how should consumers tell the difference? [more…]

During the 2008 financial crisis, a brand called "Red Island Coffee" was born in Malaysia, attracting Chinese businessmen with its upscale decor and high pricing. Founder Zhang Yufa claimed that investing 10,000 yuan would yield substantial monthly dividends, with an annual interest rate of 10%, and that recruiting downlines could bring even more returns. The temptation of low investment and high returns led many Chinese businessmen to open their wallets, and in the end Zhang Yufa absconded back to Malaysia with over 30 million yuan, with nearly 2 million Chinese people defrauded over the years. Although he once used money to smooth over relationships and evade justice, he was ultimately arrested under a joint operation by China, Thailand, and Malaysia. This case warns us: when faced with coffee franchise projects promising low investment and high returns, we must keep our eyes wide open. [more…]

A female customer nicknamed "Allergy Sister" by netizens has been requesting refunds at multiple independent coffee shops in Wuhan, claiming that lactose intolerance triggered an allergic reaction. At first, shop owners agreed out of apology and concern, until some in the trade discovered that the medical certificates were questionable and the accounts were strikingly similar, realizing that this might be a patterned refund claim. So far, more than twenty shops have come forward to confirm refunds, and the number of victims may still be growing. The person involved has deleted her account and cannot be reached, and some shop owners are gathering evidence and considering legal action to defend their rights. [more…]

What kind of sparks fly when a well-known domestic pharmaceutical company starts selling milk tea? In mid-August this year, North China Pharmaceutical's tea beverage brand opened its first store in Shijiazhuang, marketed with "healthy water," "Five Elements secret formula," and "pure natural, zero additives," with basic drinks priced at only 7 yuan. Even more surprising, during the soft opening, customers could enjoy a comprehensive smart health checkup, with a robot testing 70 indicators across ten major systems and recommending corresponding drinks based on the results. First-day revenue was nearly 8,000 yuan, and business has remained so booming since then that takeout has been shut down. The brand has already begun preparing franchise materials and plans to officially open franchising next year, while franchise stores will also take on the distribution function for Huawei Health functional foods. So how exactly does this move work? Let's take a closer look. [more…]

Following the closure of the last store of its sub-brand Xixiaocha, Heytea confirmed on November 3 that it will open franchising, with partnership fees kept under 500,000 yuan and franchise store formats primarily under 50 square meters. Heytea stated it will leverage a decade of accumulated experience and resources to develop its partnership business in non-first-tier cities with suitable store formats, providing partners with comprehensive support in branding, products, quality control, food safety, operations, training, and supply chain. In recent years, Heytea has accelerated its expansion into lower-tier markets, successively adjusting prices, launching IP collaborations, and shutting down its budget sub-brand. Opening franchising is now seen as a key step to further capture market share in third- and fourth-tier cities. Whether the new tea beverage sector will face a new round of involution, and whether direct-operated brand Nayuki will follow suit, remains worth watching. [more…]

A not-yet-opened beverage shop in Zengcheng District, Guangzhou, has sparked public debate after naming itself "Jingcha" (a homophone of "police tea") and using cartoon police imagery in its store decorations. Some see it as merely a clever pun, while more people worry it could mislead consumers. Market regulators and public security authorities have stepped in to investigate, and lawyers point out that the name may violate enterprise name registration regulations. Behind the incident lies not just the compliance of a single shop name, but the boundary between commercial creativity and public symbols. [more…]

The new tea beverage market landscape is constantly evolving. Even HEYTEA, which insisted on direct operation for ten years, has announced it will open franchising, targeting lower-tier markets. This strategy has attracted the attention of many franchisees, and some former Yidiandian franchisees are even planning to abandon their old stores to switch to HEYTEA. However, HEYTEA's partner selection criteria are quite strict—not only are the fees not low, but applicants are also required to commit full-time, provide proof of assets, and have management experience. Whether switching is wise remains unknown. This article compiles relevant reports and data, and includes a Front Street Coffee information entry for readers' reference. [more…]

The first Heytea store in Chongqing's Beicheng district has suddenly closed. This store, which had been highly popular since opening in 2018, was once regarded as a landmark presence for the brand in the Chongqing market. The closure surprised many loyal customers, and Heytea's subsequent internal email announcing the suspension of business partnership applications caused even more waves in the tea beverage industry. From the end of its first Chongqing store to the successive closures or suspensions of stores in Zibo, Xuecheng, Binhu and other places, and then to the company's proactive halt of franchise expansion, Heytea's series of moves have sparked widespread discussion about brand strategy adjustment, store quality control, and the competitive landscape of the industry. [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, some netizens noticed that the number of US stores displayed on Heytea's official mini-program had decreased noticeably compared to a month ago, with nearly 20 stores disappearing from the list. At the end of September, there were reports that Heytea would open 42 branches across 13 US cities, but now only 15 stores in three cities—Los Angeles, New York, and Bellevue—can be found on the mini-program. In response, some believe the company hid upcoming stores that were not yet fully renovated to avoid confusing consumers, while others speculate that there may have been changes in the partnership between the brand and its franchisees. What is the truth? This article walks you through the ins and outs of the incident. [more…]