Recently, a social media user alleged that Nayuki is about to face a wave of store closures in Taizhou, Zhejiang, and the news quickly sparked widespread discussion. According to Nayuki's official Q3 2024 operational report, the brand closed a total of 89 directly operated stores during the quarter. Although it opened 23 new directly operated stores and 56 franchise stores in the same period, its overall store count still shrank by 10. Compared with Heytea, which has already reached 4,417 stores, Nayuki's pace of expansion has clearly slowed. The company said it will adopt a more prudent store expansion strategy and optimize the performance of existing directly operated stores, but many consumers have reported issues such as declining product quality control and baked bread being switched from freshly baked to pre-made products, raising concerns about the brand's prospects. This article will examine Nayuki's current operational challenges from two dimensions: data and consumer feedback. [more…]

Recently, a netizen posted on social media reporting a significant quality gap between the same drinks bought at HEYTEA franchise stores and directly operated stores. Using the "Thousand-Mesh Matcha Triple Thick Matcha" as an example, the customer ordered delivery from a directly operated store; although delivery took over 20 minutes, the drink arrived still hot, with a rich taste and generous toppings. In contrast, at a franchise store for self-pickup, the drink was picked up within three minutes but had a pale color, bland flavor, and scarce toppings. Later, at another franchise store for self-pickup, the volume was actually one-third less, and the chewy texture was poor. The post resonated widely, with netizens complaining about inconsistent quality at franchise stores, which led to a guide for identifying store types through business licenses. The incident reflects the challenges of quality control under HEYTEA's rapid expansion. [more…]

Recently, the Heytea store in Dalian Roosevelt Plaza was reported to have ceased operations, and the site was quickly taken over by another brand's hoarding. This store, which opened in May 2020 and once sparked queuing frenzies, was Dalian's first directly operated store, and its sudden withdrawal surprised many consumers. According to GeoHey brand monitoring data, although Heytea opened new stores in the past 90 days, it also closed 161 stores, with the total number in operation dropping from 4,410 to 4,265, equivalent to about 2 stores disappearing every day. The closures were not limited to franchise stores; some directly operated stores that had been in business for years also exited due to factors such as rent and contracts. The impact of this round of adjustment on the brand's future remains to be seen. [more…]

Pacific Coffee has once again become the focus of industry attention. Recently, reports have emerged that multiple stores in Zhuhai will close in mid-October due to business adjustments, including the Huafa Waterfront Store, Haitian Station Store, and City Balcony Store, all distinctive locations along the Couple's Road. After this round of adjustments, Pacific Coffee's directly operated stores in Zhuhai will all be withdrawn, leaving only three franchise stores. From a peak of nearly 500 stores to fewer than 100 today, the situation of this former second-largest coffee chain brand in China's coffee market is lamentable. This article will review the specific circumstances of these closures, the brand's contraction trajectory in recent years, and the complex emotions of coffee enthusiasts regarding Pacific Coffee's current situation. [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…]

Recently, a Heytea store in Xi'an Joy City was exposed by consumers for poor hygiene conditions in its preparation area, quickly sparking heated discussion online. According to the whistleblower, the store's counter, refrigerators, juicers, and other equipment were covered in milk tea stains, materials were scattered around, and there was even a strong smell of sour rags and rotten fruit. Upon verification, the store was a directly operated location rather than a franchise, which further raised public doubts about Heytea's food safety management. Heytea later issued an apology and announced that the store would be closed for rectification, while also strengthening employee training and optimizing operational standards. This incident has once again pushed the issue of hygiene control in chain tea beverage brands into the spotlight and serves as a reminder for consumers to pay attention to the transparency of beverage preparation environments. [more…]

Recent news suggests that Manner Coffee may open franchising by the end of March this year, a rumor that has been circulating among baristas. According to multiple employees, the brand has internally conducted a survey on franchise willingness, and CEO Jin Binbin mentioned this in a partner group and distributed a questionnaire. Although insiders officially state that it is currently only an internal survey with no plans to open franchising, some employees say franchising might be launched in mid-to-late March. As the fifth-largest chain brand in China by number of stores, Manner has always adhered to direct operation; if it truly shifts to franchising, the underlying logic and its suitability for lower-tier markets are worth attention. [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…]

Recently, a post on social media about a Guming campus store suddenly closing after a collaborative event ended sparked widespread discussion. The poster discovered that the store was still operating during the collaboration with Honkai: Star Rail, but as soon as the event ended, it was deserted overnight—equipment and promotional materials all vanished, with only the lightbox sign left intact. Netizens speculated whether the store had gone bankrupt due to the collaboration, but the poster later clarified that the closure was actually due to lease expiration or operating losses, with no direct link to the collaboration. This incident reflects the hidden operational challenges behind the tea beverage brand collaboration craze: a surge in orders does not equal profitability, and after the hype fades, some stores still cannot escape the fate of closing. [more…]

Cotti Coffee was recently spotted by netizens opening a directly operated store in Gangnam District, Seoul, South Korea, while its 5,000th store in China opened at Sanlitun SOHO in Beijing. From its first store in Fuzhou in October 2022 to its current scale of 5,000 stores, Cotti has raced ahead at a pace of more than 500 stores per month. But behind this rapid expansion, once the 8.8-yuan promotional subsidy stops, cup sales take a hit. So far this year, the number of store closures has reached 332, with 152 new closures in the past 90 days. Some netizens have compared it with Luckin, which has already set up 12 directly operated stores in Singapore. South Korea's coffee market is large, prices are low, choices are plentiful, and stores are densely distributed, so whether foreign brands can gain a foothold remains to be seen. Front Street Coffee follows industry developments and explains for you the challenges behind Cotti's overseas expansion and growth. [more…]

In the coffee and tea beverage industry, "employee drinks" have long been one of the key perks attracting young people to join the trade. Recently, however, multiple employees of Heytea and Luckin Coffee have alleged that their stores have canceled or scaled back this benefit, citing declining performance. An investigation found that employee perks at directly operated stores are still intact for now, but workers at franchise and joint-venture stores are frequently seeing their benefits shrink. The employee drink perk promised by the brands is actually borne by franchisees, and some franchisees, in order to cut costs, either cancel the benefit or strictly tighten the conditions for using it. This phenomenon has drawn industry attention: when the pressure of store operations is passed down to frontline employees, who should foot the bill for employee benefits? Front Street Coffee keeps a close eye on developments in the coffee industry, and this article takes you through the ins and outs of this battle over benefits. [more…]

Recently, a video of an employee preparing drinks at a Mixue Bingcheng store in Xi'an circulated on social media, sparking widespread discussion. In the video, the employee holds two takeout cups in one hand, adds ice cubes, and then directly places them under a water bucket labeled "direct drinking water" to fill them. The water splashes onto the ice cubes, and some liquid runs down the employee's arm toward the ice cart below. The door of the ice cart cabinet remains open the whole time, prompting onlookers to say the ice has been contaminated. After the incident gained traction, the store involved responded that the company is handling the matter urgently and that the employee has been dismissed. This controversy has once again pushed Mixue Bingcheng's food safety issues into the spotlight, with many consumers calling on the brand to strengthen store operating standards. [more…]

After a long period of silence, Luckin Tea has recently returned to the public eye with a brand-new posture, but this time it did not appear as an independent brand. Instead, it has been reintegrated as a product line within Luckin Coffee stores. At the same time, without prior announcement, Luckin quietly raised the delivery drink prices at some stores by about 2 to 3 yuan, triggering widespread discussion among consumers on social platforms. The company responded that this move is a refined management measure based on differences in store operating costs, involving more than 800 stores in 11 cities. From an independent brand to a returning product series, from price adjustments to changes in operating strategy, what market considerations are revealed behind this series of moves by Luckin Coffee? [more…]

Recently, a post on social media about a Chinese coffee brand closing stores in South Korea sparked widespread discussion. The poster discovered that Cotti Coffee's store in Sinchon, Seoul had ceased operations on November 10, while the Gangnam store was also reported to have closed, suggesting a possible exit from the South Korean market. Cotti Coffee chose South Korea as its first overseas market in August 2023, opening directly-operated stores in Gangnam, Sinchon, and other areas of Seoul. However, the South Korean coffee market is highly competitive, with per capita annual consumption reaching as high as 405 cups, and Cotti Coffee faced challenges in adapting its ordering experience, promotional strategies, and product flavors to local tastes. Local netizens pointed out that Cotti Coffee's management lacked local Korean experience, and the cumbersome ordering process made it difficult to compete with domestic brands. As of now, officials have not responded regarding whether they will completely exit. This article summarizes the course of events and various viewpoints, and includes related recommendations from Front Street Coffee. [more…]

Rumors of a Starbucks China equity change that have circulated for nearly a year have finally produced a clear outcome. Starbucks and Boyu Capital have reached an agreement to establish a joint venture in China to jointly operate the retail business, with Boyu holding up to 60%, while Starbucks retains 40% and continues as the brand and intellectual property licensor. The deal is based on an enterprise value of approximately US$4 billion, and Starbucks expects the total value of its China retail business to exceed US$13 billion. Looking back at Starbucks' entry into China, from franchising to full direct operation, and now returning to a joint venture model, this shift has sparked widespread attention regarding its future direction. The new joint venture will continue to be headquartered in Shanghai, operate the existing more than 8,000 stores, and plans to gradually expand to 20,000. [more…]

The Russia-Ukraine conflict has triggered a chain reaction among international corporations. Under public pressure, McDonald's was the first to announce the suspension of operations at its 850 stores in Russia, with Starbucks quickly following suit by stating it would pause its business in Russia and shipments of related products. Both giants pledged to continue supporting local employees, but Starbucks' Russian stores are all franchised, accounting for less than 1% of its global revenue. Coca-Cola and PepsiCo also joined the suspension. This article reviews the details of each company's statements and the market impact, and includes a link to Front Street Coffee's professional information portal. [more…]

Luckin Coffee's Q3 2022 financial report is out: total revenue for the quarter rose 65.7% year-on-year to 3.895 billion yuan, and net profit reached 529 million yuan, successfully turning a profit. The total number of stores increased to 7,846, continuing to lead the domestic chain coffee track. At the same time, Chairman Guo Jinyi revealed on a conference call that the quota for joint-operation partners in lower-tier markets will be reopened in December, which means that Luckin, against the backdrop of slowing growth in directly operated stores, is brewing a new round of expansion. Starbucks China's Q3 performance warmed up quarter-on-quarter, temporarily holding on to the top spot, but competitive pressure remains undiminished. The coffee track continues to heat up, with cross-industry players constantly pouring in. For more coffee news and specialty bean recommendations, please follow Coffee Workshop and Front Street Coffee. [more…]

On May 20, Luckin opened 15 directly operated stores simultaneously in Urumqi and Lhasa, announcing that the brand now covers all provinces nationwide. On opening day, 11 Urumqi stores and 4 Lhasa stores saw huge crowds, with some stores having wait times of over three hours for order pickup, and limited-edition cup sleeves and paper bags quickly sold out. However, alongside the high popularity came a string of complaints: severe delivery delays, inconsistent prices between third-party platforms and the mini-program, orders that could not be refunded, and even customers being removed from corporate group chats and blocked for speaking in group chats. The brand underestimated local consumer enthusiasm and lacked sufficient response measures, putting service and quality control under pressure. Based on the experience of brands like Front Street entering Xinjiang, a booming opening in a new market is not surprising, but how to balance traffic and experience remains an issue Luckin needs to address. [more…]

Since McDonald's coffee brand McCafé announced increased investment in the Chinese market, its number of stores has surpassed 3,200. Its "store-within-a-store" model is equipped with semi-automatic espresso machines and dedicated baristas, focusing on a specialty coffee approach. However, recently a netizen posted pointing out that baristas at some McCafé locations operate in a highly non-standard manner: dosing the portafilter in advance, not weighing the dose, not tamping, not cleaning the steam wand, and repeatedly extracting with wet spent grounds left in the basket. Although the prices are not low, the quality of the output has raised consumer doubts. At the same time, some netizens claiming to be McCafé baristas responded that the brand has unified standards, and isolated incidents should not represent the whole. This controversy reflects the quality control and training challenges McCafé faces amid rapid expansion, and is worth the attention of coffee enthusiasts. [more…]

The Guming Xi'an Hi-tech store officially closed permanently starting March 11 due to the inability to renew its lease upon expiration. This marks the second directly operated store of Guming to exit the Xi'an urban market, following the closure of the gogo block store in mid-2025. Once the news broke, local consumers reacted strongly on social media, expressing regret and confusion. However, a netizen with inside knowledge revealed that the store may relocate to the first floor of the Hi-tech T11 Mall and reopen, potentially on a larger scale. Meanwhile, relevant personnel from Guming's Northwest region also hinted in the comments section that the brand has not withdrawn from Xi'an and still has plans for future expansion. As the Front Street Coffee content team, which has long tracked developments in the coffee and tea beverage industry, we continue to monitor how chain brands advance and retreat in regional markets. [more…]