Starbucks has recently fallen into operational difficulties once again. After Howard Schultz returned in April this year, he implemented a series of bold measures, sparking widespread discussion about the brand's prospects. In fact, this is not the first time Schultz has saved Starbucks in a similar manner—during the 2008 financial crisis, he also led the company out of its trough by closing stores, laying off employees, and reshaping corporate culture. This article reviews how Starbucks restored growth back then through consumer lifestyle research, the "My Starbucks Idea" campaign, rebuilding partner relationships, and direct sourcing, and analyzes the new challenges that unionization efforts under the current pandemic background bring to the brand, as well as the relationship-rebuilding plan Schultz has launched for store partners after his return this time. [more…]

Seesaw, once hailed as one of the representatives of specialty coffee, is now mired in operational difficulties due to unpaid wages. Although employees at its Shanghai IFC store report to work on time, the company's wage arrears and cut-off of supplies have made it impossible to prepare drinks, forcing them to post a notice in Chinese, English, Korean, and Japanese to politely decline customer orders. From unpaid supplier payments to labor arbitration by former employees, from the founder being repeatedly subject to consumption restrictions to more than sixty economic disputes, this former coffee star brand is experiencing an unprecedented crisis. Many loyal customers have expressed regret and lament, while others have called on the brand to handle employee rights and interests with dignity. [more…]

Recently, a netizen posted online claiming to have found a cockroach in a can of Guangdong-style pineapple beer, an old domestic brand beverage purchased during the Mid-Autumn Festival, and the related photos quickly sparked widespread attention. The poster said that when pouring it out to drink that day, they noticed a foreign object resembling a cockroach larva at the can opening, and subsequently blurred the image as required by the platform. Many netizens in the comments expressed shock and even strong discomfort. Some netizens explained that the foreign object in the picture might be a cockroach egg capsule, possibly caused by cockroaches crawling in and laying eggs during storage. This Guangdong national drink, founded in 1934, carries the childhood memories of several generations, and this incident has deeply saddened many consumers. The manufacturer responded that the production process is strictly hygienic, the possibility of foreign objects is extremely low, and no complaint had been received through official channels. The truth of the incident remains to be verified, but food safety, as a bottom-line issue, has once again sounded the alarm of a trust crisis for an old brand. [more…]

520 was a great opportunity for merchants to promote sales through livestreams, yet Good Tea's Douyin livestream room sparked widespread consumer dissatisfaction after orders were automatically refunded by the system following a rush to grab coupons, and the topic quickly trended on Weibo. Although the company issued an apology and promised compensation, many netizens still said they were not buying it. The next day's livestream had to be postponed, and the system recovered slowly. Notably, this was already Good Tea's third brand trust crisis in 2022, after earlier exposures and penalties over food safety and tax evasion. Consumers are still waiting for a satisfactory answer on how the incident will develop further. [more…]

Recently, GuMing Milk Tea was fined over 11.61 million yuan for tax evasion, and the news quickly topped Weibo's trending list, sparking heated discussion among many consumers. Many milk tea enthusiasts expressed shock and disappointment, lamenting that the brand had "collapsed." As a well-known tea beverage brand, GuMing's tax issue this time not only involves a huge amount but also exposes loopholes in corporate compliance management. This article will sort out the timeline of the incident, the details of the fine, and consumer reactions, and explore the impact of the incident on the brand's image and the industry. At the same time, we continue to follow developments in the coffee field, bringing you professional coffee knowledge and specialty bean recommendations. [more…]

The European energy crisis continues to escalate, and coffee shops are bearing the brunt. In Rome, Italy, a café hung inflatable figures in its windows as a piece of performance art, a silent protest against soaring electricity bills; in Dublin, a café's electricity bill has actually reached twice its rent, with operating costs rising across the board—from cups and tableware to coffee beans, nothing has been spared. Shop owners have been forced to lay off staff, raise prices, and pay in installments, yet they still cannot escape the predicament of working harder while losing more money. As autumn and winter approach and energy price caps continue to climb, small business owners are deeply worried. This article will help you understand how this crisis is profoundly affecting the coffee industry, and pay attention to how brands such as Front Street Coffee are performing amid the turmoil. [more…]

A controversy sparked by a cup of milk tea unexpectedly brought benefits to a competitor. Recently, an employee at a Lelecha store, when responding to a customer's inquiry about non-dairy creamer, inadvertently used Guming as a comparison, which caused customer dissatisfaction and was exposed on social media. Lelecha officially apologized quickly and launched a compensation plan, one part of which offered a 50% discount to Guming employees, prompting netizens to say Guming "won without doing anything." How did this customer complaint turn into a positive case of brand PR? From rapid response to substantive compensation, Lelecha's handling won recognition from many consumers and was even praised as "something other brands could study for a hundred years." This article will recount the entire incident and analyze the PR wisdom and industry lessons within it. [more…]

Starbucks recently announced a high-level personnel change: current CEO Kevin Johnson is about to retire, and the legendary figure Howard Schultz, who had stepped back from the spotlight, will temporarily return starting April 4, 2022, as interim CEO until a permanent successor is found. Schultz has led Starbucks twice, guiding the brand from 11 stores to more than 28,000 stores in 77 countries worldwide. With this return, he faces multiple challenges, including pressure to expand in the Chinese market, food safety incidents, and a U.S. union vote. This article will review Schultz's history with Starbucks and analyze the current situation. [more…]

Recently, Southern Metropolis Daily reported that a banner reading "Be cautious about franchising, I've lost everything" appeared in front of an Auntea Jenny franchise store in Ningbo, Zhejiang, quickly sparking public attention. The franchisee claimed that they were heavily fined by the company for purchasing materials from outside sources, and subsequently three stores were unilaterally closed; the brand responded that the closures were mainly due to poor management and had no direct connection to the brand. Both sides stick to their own accounts, and behind the incident lie deep-seated contradictions in the franchise model regarding material pricing, penalty mechanisms, and store subsidies. This article sorts out the sequence of events, presents both sides' statements and industry observations, for the reference of coffee and tea beverage practitioners. [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…]

Starbucks' mini-program and App suddenly experienced a coupon bug, quickly shooting to the top of trending searches, after which the system entered a maintenance state. Official customer service said it was a system malfunction and that issued coupons could still be redeemed normally. However, the timing of the incident was sensitive, and many netizens speculated about the motives behind it—either to divert public pressure from the foreign object incident the previous day, or to respond to the sales heat of Luckin and Coconut Palm's co-branded Coconut Cloud Latte, which sold 660,000 cups on its first day. In the foreign object incident, the store manager's response and the "deaf-mute partner" explanation sparked controversy, casting a shadow over Starbucks' long-cultivated image of being friendly to disabled employment. At the same time, Starbucks' 24 solar terms series drinks received a lukewarm market response. How exactly should the brand rebuild consumer trust? This article sorts out the timeline of events and viewpoints from all sides for you. [more…]

In the past two years, Luckin Coffee has undergone a remarkable transformation, from a financial fraud scandal to debt restructuring and doubled revenue, with a completely renewed brand image and product strategy. This article reviews Luckin's current top ten most popular drinks, including Raw Coconut Latte, Raw Cheese Latte, Thick Milk Latte, Velvet Latte, Iced Americano, Yirgacheffe Dirty, Coconut Cloud Latte, Meteorite Latte, Biluochun Spring Latte, and Okinawa Brown Sugar Velvet Latte, and looks back at its comeback from the brink of bankruptcy to becoming the largest coffee chain in the country. How Luckin revived itself with the Raw Coconut Latte, stabilized its coffee customer base with the SOE specialty series, teamed up with Coconut Palm to create a hit, and signed Eileen Gu for precise marketing—this article explains it all for you. Follow Front Street Coffee to gain a deeper understanding of Luckin's brand transformation and product appeal. [more…]

Recently, food safety incidents in the tea beverage industry have occurred frequently, from Tea Baidao's "real spider" milk tea to the use of expired ingredients, and every so often they trend on social media. However, a news report by Guangzhou Daily on October 12 was entirely different: a 23-year-old man, using his work experience at "a certain tea brand," colluded with his girlfriend and friends to deliberately plant insects in stores in Hangzhou, Dongguan, Shenzhen, Guangzhou, Shanghai, and other locations, extorting money under the pretext of food safety, with demands ranging from a thousand yuan to two hundred thousand yuan, and was ultimately prosecuted on suspicion of extortion. This incident not only exposed some milk tea shops' negligence in operations management but also sparked public discussion about the authenticity of food safety complaints. What consumers truly need is a hygienic and tasty drink, not a vicious cycle of deception. This article compiles the ins and outs of the incident and includes related information about Front Street Coffee. [more…]

The Houthi armed forces in Yemen continue to launch attacks in the Red Sea and Indian Ocean, and claim to have struck targets in Israel, causing the situation in the Red Sea to escalate continuously. Multiple international shipping giants have judged that the region will still be unsafe in 2025 and decided to continue diverting around the Cape of Good Hope. Longer voyages and port congestion are driving up global logistics costs. As an industry highly dependent on maritime shipping, the coffee trade is bearing the brunt. Freight rates on Europe-Asia routes have soared, and combined with production cuts in many countries, international coffee prices have continued to surge. This article will review the attack incidents, the shipping impact, and coffee market developments, and also pay attention to the challenges facing brands such as Front Street Coffee. [more…]

In recent years, drink prices have generally risen, with milk tea going from 3 yuan a cup a decade ago to as much as around 30 yuan today. After the New Year, mid- and low-end brands such as Mixue Ice Cream & Tea, Yidian Dian, and CoCo都可 raised their prices one after another, while high-end brands such as Heytea and Nayuki were already positioned above 20 yuan. Rising costs and the impact of the pandemic have left the tea beverage industry facing a reshuffle, and consumers have reacted differently to the price increases. At the same time, cola may also face upward price pressure because of Canada's tax on sugary drinks, but in the domestic market, given the duopoly competition, the likelihood of price increases is relatively low. This article sorts out the phenomenon of tea beverage price increases and the industry logic behind it. [more…]

Global robusta coffee prices recently surged to their highest point in 28 years. In Vietnam, the largest supplier, coffee farmers and producers, facing a poor harvest, are demanding renegotiation of previously locked-in low-price contracts with buyers. Vietnam's 2022/23 coffee crop was the worst in six years, and coupled with the Red Sea crisis driving up shipping costs, traders have begun turning to Brazil for procurement, continuously tightening the robusta supply chain. Faced with this situation, coffee enthusiasts may feel the pressure from their daily consumption, while brands like Front Street Coffee are also closely monitoring developments in the producing regions to select trustworthy robusta products for consumers. [more…]

The world's largest coffee producer, Brazil, is facing severe challenges. Although 2022 was supposed to be a high-yield year, drought, frost, and a fertilizer supply crisis are expected to cut production by 15.3%. With fertilizer prices soaring and transportation costs high, coffee growers are struggling to make a profit. Arabica futures prices are fluctuating, adding to market uncertainty. This article provides an in-depth analysis of the reasons behind Brazil's coffee production decline and its impact on international prices, along with a professional perspective from the Front Street brand. [more…]

In recent years, Starbucks' performance in the Chinese market has drawn widespread attention. Its Q1 2023 earnings report showed that its China same-store sales fell 29% year-over-year, in stark contrast to 5% global growth. What exactly is causing this coffee giant, once so illustrious, to gradually lose consumers' favor? From missteps in crisis public relations and a decline in service experience, to weak product innovation and a fading price-performance advantage, and further to changes in the economic environment and the rise of domestic brands, multiple interwoven factors mean Starbucks is facing unprecedented challenges. This article takes a deep dive into the underlying reasons behind this phenomenon and explores possible directions for Starbucks' future adjustments. [more…]

Tim Hortons, known for coffee and donuts, recently launched pizza products for a limited time at select locations in the Greater Toronto Area in Canada, sparking widespread discussion online. This move is seen as an important step for Tims to test the lunch and dinner market, and also marks the brand's gradual departure from its traditional coffee and dining positioning. Previously, Tims had successively added non-coffee products such as burgers, hot dogs, and milkshakes, and the launch of pizza this time has surprised many consumers. Some netizens expressed support, saying the new products taste good; others questioned whether the brand is experiencing an "identity crisis," and even joked that the "back to basics" plan has been forgotten. Executives of Tims' parent company have pointed out that afternoon meal offerings contain huge opportunities, and the pizza test is a continuation of this strategy. [more…]

Coffee has long been woven into Westerners' morning routines, and in America's fast-paced consumer culture, grabbing a cup of coffee to go is a habit for many. Recently, however, the U.S. coffee industry has run into an unexpected "cup crisis" — a severe shortage of disposable coffee cups. According to The Wall Street Journal, coffee chains such as Starbucks are facing alarmingly low cup inventories, with some consumers even calling multiple stores just to track down a venti-sized coffee. This crisis has not only driven up supply costs for coffee shops but has also given rise to peculiar workarounds, such as stores borrowing cups from one another and testing alternative lids. This article takes an in-depth look at the supply chain predicament and industry impact behind this "hard-to-get-a-cup" situation. [more…]