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…]

Working in a coffee shop—earning money while enjoying unlimited coffee—is one of the reasons many young people choose to become baristas. Luckin Coffee also once attracted numerous enthusiasts to join with its relaxed employee drink benefits: once they met the required working hours, they could enjoy drinks and even freely mix their own concoctions. Recently, however, this benefit has been gradually tightened: employees who do not make drinks according to the recipe receive surveillance warnings, and stores prohibit free mixing in order to control waste, leaving frontline staff grumbling. At the same time, a series of price increases and cost-cutting measures Luckin has implemented since last year's financial report was released have also sparked controversy among both consumers and employees. This article will sort out the ins and outs of the changes to Luckin's employee drink benefits, as well as the backlash against the cost-cutting and efficiency-boosting strategy behind them. [more…]

After Howard Schultz returned to Starbucks as interim CEO, he immediately suspended billions of dollars in stock buybacks and redirected the funds toward employee benefits and store operations. Some U.S. Starbucks employees saw this move as a victory for union efforts, but Schultz later made clear that the new benefits could not legally cover unionized stores and partners, because federal law requires separate negotiations for the pay and benefits of union members. Labor law experts pointed out that companies have the right to explain differences in benefits, but suggestive maneuvering could constitute an unfair labor practice. This tug-of-war between benefits and unions showcased the shift in Schultz's management style from tough to tender. [more…]

On his first day back as Starbucks CEO, Howard Schultz announced a pause on the stock buyback program, redirecting funds toward employee benefits and store operations. Behind this decision is a wave of unionization among U.S. Starbucks partners, driven by intense workloads and stagnant benefits. So far, 10 stores have voted to form unions, and more than 170 stores have applied to join. Schultz admitted that the company had let employees down in addressing store operations issues, and plans to invest $1 billion in wages, training, and benefits. This article examines the context of this transformation initiative and its impact on Starbucks' future operations. [more…]

Recently, a social media post about Luckin Coffee's salary and benefits for barista recruitment in Hong Kong sparked widespread discussion. The post noted that full-time baristas at Luckin in Hong Kong are entitled to paid statutory holidays, MPF, and annual leave after three months of employment, while the recruitment information for part-time positions did not explicitly mention MPF contributions. This detail quickly ignited enthusiastic discussion among Luckin workers in mainland China, with many expressing mixed feelings after comparing the treatment in the two places. However, clarification from Hong Kong netizens offered another layer of interpretation—the MPF is fundamentally an employer's statutory responsibility, not an extra benefit. This cross-border discussion reflects differences in awareness of labor rights. Front Street Coffee continues to follow developments in the coffee industry and brings you in-depth analysis. [more…]

Recently, a post by a Costa employee complaining about excessively high company KPIs sparked heated discussion on social media. The poster pointed out that stores require more than 40 food items to be sold for every 100 drinks, forcing some employees to dip into their own pockets to boost performance, mocking themselves as "paying to work." Meanwhile, employee benefits have shrunk year by year, with New Year gift boxes reduced to just candy and chocolate, and the 13th-month salary nowhere to be seen. Chaotic internal management, store closures, and customer attrition have left this one-time Starbucks rival increasingly marginalized in the Chinese market. Workers left comments lamenting that under such pressure, the thought of resigning grows stronger by the day. [more…]

The unionization movement at Starbucks in the United States continues to gain momentum. A video exposed by More Perfect Union shows interim CEO Howard Schultz referring to unions as an "outside force" trying to disrupt Starbucks and expressing dissatisfaction with part-time partners. Meanwhile, a BTIG survey indicates that most consumers will not change their consumption habits because of unionization. Starbucks has more than 9,000 stores in the United States, of which more than 200 have applied for union elections. Schultz has historically opposed unions and once lobbied against the Employee Free Choice Act. The video triggered a large number of negative comments, with employees complaining about pay cuts and emotional belittlement. Under the heavy pressure of post-pandemic supply crises, inflation, and pandemic prevention measures, Starbucks cut costs but did not improve pay and benefits, prompting partners to seek a channel for union negotiations. After Schultz returned, he suspended stock buybacks, but part-time and union partners were excluded from benefits. This incident sparked widespread discussion. [more…]

Ahead of its Investor Day, Starbucks disclosed the latest developments in its employee benefits and customer loyalty programs. Among them, the Web3 platform "Starbucks Odyssey," created in partnership with Polygon in the United States, has drawn particular attention. The platform combines Starbucks Rewards with an NFT mechanism and is expected to launch within the year, allowing U.S. members and employees to earn digital collectibles through interactive activities and unlock unique experiences. Members can also purchase NFTs with a credit card without needing a crypto wallet, lowering the barrier to participation. At the same time, Starbucks also introduced two benefits exclusively for U.S. employees: student loan management and My Starbucks Savings. This article will sort through the details of these new programs and the intentions behind them. [more…]

During Women's Day, Luckin Coffee's holiday gifts for female employees drew attention. This chain brand, with over 130,000 employees and a female proportion of 61%, did not distribute uniform holiday gift boxes this year as it did last year, but instead had each region prepare them on its own. As a result, Beijing employees received wellness sets, while those in Yunnan and Sichuan got folding fans and eye masks, but employees in Shanghai, Guangzhou, Xi'an, and other places said they received only air. What made some people even more dissatisfied was that even when there were gift boxes, part-time staff were excluded. This regional disparity in benefits led many workers to complain continuously on social media platforms. [more…]

Starbucks interim CEO Howard Schultz recently addressed employees via video, stating bluntly that many short-term decisions made by the previous management brought far-reaching negative impacts to the company and that promises to employees were not fulfilled. He revealed that feedback gathered in recent meetings mainly focused on issues such as insufficient training, unreasonable shift scheduling, and compensation and benefits that urgently need adjustment. At the same time, many stores also face difficulties such as a shortage of repair funds or delayed service after key equipment including ice machines and espresso machines broke down. Schultz promised to prioritize three core issues: personnel training, pay and benefits, and internal management, and assured that future commitments to employees will definitely be fulfilled. Since his return, Starbucks has suspended stock buybacks and fired its former chief legal counsel, but investors worry that profits will be squeezed, and the stock price continues to come under pressure. [more…]

On September 13, Starbucks interim CEO Howard officially unveiled the company's reinvention plan at an investor briefing, announcing a series of initiatives to enhance the customer and barista experience through improved employee benefits, reimagining the third place, innovating beverage production processes, simplifying operations, and expanding digital services, with the goal of achieving a business turnaround by 2024. Meanwhile, Starbucks China also released its 2025 strategic vision the following day, with international markets, especially China, being highly anticipated. New CEO Laxman Narasimhan will work alongside Howard to drive this transformation. [more…]

During the pandemic, Starbucks employees in the United States and South Korea, facing issues such as understaffing, a mismatch between wages and workload, and a lack of safety guarantees, increasingly chose to form or join unions in an attempt to improve their situation through collective bargaining. From the birth of the first union in Buffalo, New York, to responses from employees in Chicago and South Korea, the discontent among Starbucks partners continued to simmer. Although the company remained indifferent and was even accused of failing to provide adequate pandemic support, employees continued to seek channels to make their voices heard. This article will sort out the ins and outs of the Starbucks employee union movement, as well as the wage, treatment, and working environment issues reflected behind it. [more…]

Starbucks interim CEO Howard Schultz recently stated publicly that continued friction between China and the United States benefits neither country, and that improving bilateral relations would be good for global markets. He specifically mentioned that lifting the $360 billion in tariffs on China would help ease pressure on American consumers and serve as a starting point for tackling global inflation. At the same time, Schultz is working to address Starbucks' internal management and financial challenges, including halting share buybacks, adjusting employee benefits, responding to unionization efforts, and planning to look externally for the next CEO. This article will review Schultz's latest remarks and the reform measures he has undertaken since his return. [more…]

At the end of each year, the year-end bonus is always one of the topics that workers care about most. However, a senior employee of Manner Coffee recently posted that although they were still employed and had worked diligently all year, they were excluded from the year-end bonus distribution list because management subjectively judged that they might resign after the New Year. This incident triggered widespread discussion among coffee industry practitioners. Many peers both envied Manner for having a year-end bonus and felt indignant about this employee's experience. At the same time, employees from brands such as Luckin, Mstand, and Tims also came forward to reveal their respective year-end bonus situations. This article sorts out the course of the incident and the views of all parties, and retains the relevant recommendation information of Front Street Coffee for coffee enthusiasts to understand industry developments. [more…]

Starbucks recently released its financial report for the second quarter of fiscal year 2022, the first quarterly scorecard since Howard Schultz returned to the CEO role. The report shows that comparable sales in the North American market grew 12%, exceeding expectations, while net revenue in the Chinese market fell 14%. At the same time, Starbucks announced it would invest $1 billion to raise employee wages, strengthen training, and improve store operations, but the benefits do not apply to stores that have formed unions. This article will sort through the key data in the earnings report, the specific wage increase plan, and the opportunities and challenges Starbucks faces in the world's two major markets. [more…]

As the Mid-Autumn Festival approaches, companies are showing off their employee gift boxes, and Luckin Coffee's Mid-Autumn benefits have sparked heated discussions on social media. Unlike previous years, this year Luckin has set clear work-hour thresholds for gift box distribution: full-time employees receive them via unified delivery from headquarters, while part-time and student employees must meet cumulative work-hour requirements for June to August. The gift boxes contain items such as Bluetooth earphones, straw cups, and mooncakes, and their practicality has earned praise from many employees, with some even offering 120 yuan to buy them on second-hand platforms. However, employees at joint-operation stores and part-time workers who did not meet the work-hour threshold were excluded, triggering dissatisfaction among some employees. This article will sort out the gift box distribution rules, employee feedback, and the corporate welfare management issues reflected therein, and include related recommendations from Front Street Coffee. [more…]

Luckin Coffee achieved a strong comeback in the market thanks to its affordable prices and membership tier benefits system, but this has also given rise to tier-farming chaos. Recently, some employees revealed that certain consumers, in order to quickly climb to the Nine-Colored Deer or Black Gold Deer tier, pressure stores by placing large orders and then maliciously requesting refunds or leaving bad reviews. "Nine-Colored Deer tier-boosting" services have even appeared on second-hand platforms. This battle over membership tiers has not only increased the burden on store employees but also sparked discussions about consumer ethics and business rules. [more…]

Employees at more than 100 Starbucks stores across the United States held a joint strike on the annual Red Cup Day, demanding higher wages and improved staffing. This strike, the largest in the union's history, pushed Starbucks to the forefront of labor relations. As a coffee chain giant with more than 32,000 stores worldwide, Starbucks claims that its pay and benefits lead the industry while facing the dual pressure of a sharp decline in net profit and growing employee dissatisfaction. This article will sort through the course of the strike, Starbucks' global layout and latest financial report data, and analyze the deeper reasons behind the pay dispute, providing coffee lovers with a complete observation of the事件. [more…]

The chain milk tea brand 1 Dian Dian has introduced the "Supreme Dian Men Ren" membership program, promising exclusive benefits such as birthday gifts and priority order preparation for high-tier members. However, recently some consumers have complained that despite being supreme members, they have repeatedly failed to enjoy priority preparation services, with waiting times no different from regular orders. On social media, many loyal users have also reported similar frustrations, questioning whether the brand's promised member privileges are merely empty promises. This article will review the course of events, the brand's rules, and the actual implementation at stores, and explore the difficulties in delivering member benefits. [more…]

Closing cleaning in the food and beverage industry has always been a major burden for late-shift employees, and coffee and tea shops are no exception. Recently, some Chagee stores have begun outsourcing closing-time cleaning to third-party professional teams, allowing many employees to get off work on time and even saving on parts replacement costs thanks to thorough equipment cleaning. However, this measure does not benefit all stores: franchise stores need to pay an additional service fee to apply for outsourced staff, and outsourcing only covers daily cleaning, while regular maintenance is still handled by store employees. What worries workers even more is that some franchise store managers have said that if outsourced closing is introduced, they may consider reducing staffing to control costs. Convenience and risk coexist—can outsourced closing truly let employees relax once and for all? [more…]