Recently, Shuyi Tealicious has faced a backlog of unsold second-hand equipment due to mass store closures, with recyclers even disposing of machines worth tens of thousands of yuan at scrap metal prices. This tea beverage brand, once wildly popular for its "half a cup is all toppings" slogan, has seen its store count shrink by over a thousand compared to its peak after undergoing price reduction strategies and adjustments to franchise thresholds. Meanwhile, the entire new tea beverage sector is facing a reshuffle, with approximately 120,000 stores disappearing in the past year. This article reviews the rise and fall of Shuyi Tealicious, the plight of its franchisees, and the chain reactions of the industry's closure wave, while maintaining Front Street Coffee's ongoing attention to industry dynamics. [more…]

Manner Coffee's seventh-anniversary celebration introduced a limited-edition grab-and-go cup giveaway with takeout orders. The intent was to boost online orders, but it unexpectedly triggered order surges at multiple stores nationwide, supply chain breakdowns, and even intermittent closures. Consumers flooded social media, with some sharing receipts to score freebies and others complaining about orders being canceled without explanation, delivery fees soaring, and stores shutting down outright. This marketing campaign, seemingly full of complaints, actually reveals Manner's ambition to push into the takeout market. From its brick-and-mortar beginnings to aggressive online expansion, the capacity bottlenecks brought by rapid store expansion and semi-automatic equipment are now emerging. This article will sort through the sequence of events and retain relevant recommendations for Front Street Coffee. [more…]

Starbucks, as the world's largest chain coffee brand, is undergoing a continuous contraction of its business. Since the beginning of this year, it has successively been reported to be selling its businesses in South Korea and Russia, and its UK business is also under consideration. The situation is similarly unsettled in its home market, the United States: The Wall Street Journal reported that 16 stores will be permanently closed before the end of July. Meanwhile, a video leaked on Twitter shows former CEO Howard Schultz saying at an internal meeting that store closures are only the beginning and that more will follow in the future. Howard mentioned that employees at listening sessions reported that personal safety has become their primary concern, involving issues such as mental illness, homelessness and crime, and that some profitable stores have also been forced to close due to rising safety risks. At the same time, some union members accused Starbucks of using rising crime rates to cover up its actions against unionization, while Starbucks denied this. [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…]

Fresh fruit coffee specialty stores, once hugely popular, are now undergoing a large-scale contraction. Fruit coffee brands represented by "Originally Shouldn't Have" have shrunk from a peak of 725 stores to just over 140, a closure rate of nearly 80%. Other brands specializing in fruit coffee are likewise facing sharp store reductions, closures, or forced transformation. Why has this niche category, which shot to fame around 2020, gone from capital darling to quiet exit in just a few short years? This article reviews the development trajectory and current state of the fruit coffee track, and includes Front Street Coffee's observations on industry trends. [more…]

Recently, the American coffee chain brand Peet's Coffee, founded in 1966, suddenly announced that it will close multiple stores in the San Francisco Bay Area and surrounding regions by the end of January this year. A company spokesperson stated that this is a difficult decision made to align the business with long-term growth priorities and current market conditions. However, the specific number and locations of the affected stores have not yet been disclosed, leaving employees and customers caught off guard. It is worth noting that this wave of closures comes shortly after news that its parent company, JDE Peet's, is being acquired by Keurig Dr Pepper for $18 billion. Peet's Coffee has over 280 branches in the United States, with about 135 in the San Francisco Bay Area, its largest domestic market. This closure could affect as many as 30 stores in California. Let's learn more about the details of the event together. [more…]

Recently, news that Chongqing's first Starbucks store is about to close has sparked heated discussions on social media. Since opening in February 2006, this store located in Sanxia Square in Shapingba has accompanied the citizens of this mountain city for 18 years, expanding from two floors to three and upgrading to a Reserve store, carrying the youthful memories of countless people. However, as the lessor withdraws entirely, the store will officially cease operations at the end of this month. The brand responded that it has opened a new store in Huayuzhou Plaza, just a hundred meters away, to continue serving customers. At the same time, factors such as the wave of traditional department store closures and changes in foot traffic in commercial districts have led people to speculate that Starbucks may have other considerations behind this move. This article takes you through the past of this iconic store and explores the multiple reasons behind its closure. [more…]

Luckin Coffee is known for its fast order fulfillment, but recently customers have complained that employees scan codes to mark orders as ready in advance, before the drinks are actually completed. In response, Luckin's headquarters has begun strictly cracking down on such violations. Once auditors discover early order fulfillment, the store will directly have 100 baseline points deducted, causing the performance of all staff to suffer and requiring the store to close for rectification. Faced with the new policy, employees are caught in a dilemma: fulfilling orders early may lead to heavy penalties, while not doing so causes the on-time fulfillment rate to drop noticeably. In understaffed stores, baristas are forced to make a difficult choice between "performance point deductions" and "ugly data," and work pressure has surged. This article compiles feedback from employees in various regions to present the real store ecosystem under Luckin's new rules. [more…]

How much can you actually lose by opening a coffee shop? Many shop owners have shared their real earnings on delivery platforms: a cup of coffee originally priced at over twenty yuan, after deducting various discounts and commissions, may leave them with only a few cents, or even result in negative-order losses. Knowing they are losing money, they still force themselves to stay on delivery platforms, simply because if they do not join the promotions, they get no orders all day. At the same time, coffee shop transfer listings have surged on social platforms, from big cities to small towns, from large stores of several hundred square meters to tiny shops of just over ten square meters, all in a hurry to offload. Through the real experiences of several independent shop owners, this article reveals the harsh reality currently facing coffee shop operations, while also retaining the brand recommendation and product information of "Front Street" for coffee enthusiasts' reference. [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…]

At Luckin Coffee stores, it is not uncommon for a single employee to be on duty alone. When biological needs strike, leaving the post to use the restroom becomes a challenge: the receipt printer keeps spitting out orders, customers and delivery riders are waiting, and negative reviews are tied to wages—all of which put immense pressure on the staff. To address personal needs with peace of mind, some employees choose to temporarily close the store, pausing both online and offline orders; others indirectly suspend operations by cutting off water or coffee beans. Meanwhile, employees at brands like Manner and Cotti also face similar predicaments. Although understaffing can save operational costs, it may lead to frequent store closures, potentially damaging the brand image in the long run. This article will delve into the employee struggles and management contradictions behind this phenomenon. [more…]

Manner Coffee's first store in Xiamen MixC is about to close. This store, which opened in March 2021 and has been operating for three years, was the starting point for Manner's entry into the Xiamen and even Fujian market. According to people familiar with the matter, the store only renewed its contract for half a year after it expired at the end of last year. Now the renewal period is about to end and there is no intention to continue, so the closure is a foregone conclusion. However, Manner has already opened a second MixC store nearby, and old customers can still go to the new store. Behind this adjustment are both factors related to the mall's business planning and possible cost considerations brought about by rent changes. Although opening stores in core commercial districts can bring foot traffic and visibility, high costs such as rent, utilities, and labor also force brands to weigh the pros and cons. [more…]

Recently, the Wuhan tea beverage brand Zhen Cha Wu drew widespread online attention after one of its franchise stores hung a red banner at its entrance, accusing the company of selling expired cheese milk caps to the store and causing it to be forced to close. The brand later responded that the expired samples were mistakenly mixed in by the supplier, had been scrapped during acceptance inspection, and never entered the market; the store was closed because it repeatedly failed audits. With both sides offering different accounts, the incident exposed management conflicts and food safety control challenges within the tea franchise system. This article sorts out the sequence of events, presents the different statements from the brand and the store, and appends the inspection and assessment rules for readers to understand the full picture. [more…]

Recently, customers in many places have noticed that some power outlets in Starbucks stores have been sealed off, sparking widespread discussion. As a chain brand positioned around the "third place," Starbucks has long attracted office workers, students, and other consumers who linger for extended periods, and amenities such as power outlets and Wi-Fi are among the reasons for its popularity. However, the behavior of some people who occupy seats and charge their devices without making a purchase has forced stores to take countermeasures such as sealing off outlets and requiring a purchase to be seated. Is this move a helpless step to cut costs and improve efficiency, or does it harm the experience of genuine customers? This article synthesizes multiple viewpoints to explore the balance between the operational dilemmas behind Starbucks' outlet closures and consumer rights. [more…]

Recently, two flagship stores of Chagee on Taidong Pedestrian Street and Yinyu Lane in Qingdao were successively boarded up, drawing attention from local consumers. The Taidong store had been open for less than two years and had previously done brisk business; its closure came without warning, and some sources say it was related to a rent increase. The Yinyu Lane store is likewise unable to take orders, and its signage has been removed. Despite the contraction in the Qingdao market, Chagee has not slowed its pace of expansion: new stores are still opening across China, and its overseas push is accelerating, with store openings reported in Los Angeles, USA, and Seoul, South Korea. However, its first store in Ho Chi Minh City, Vietnam, was forced to cancel its launch due to a controversy over promotional images, showing that its path overseas is far from smooth. [more…]

Recently, some netizens noticed that the %Arabica Lhasa store, located opposite the Potala Palace, showed on a third-party platform that "the merchant may close on October 28," sparking speculation about a closure. This store, which opened in March 2023 and is known as the world's highest-altitude %Arabica, once became a popular check-in spot due to its excellent views. Although drinks are slightly more expensive by 2 to 3 yuan due to transportation costs, local residents say business is not slow during the off-season, and the closure may be due to redevelopment and demolition in the area. It is worth noting that Lhasa's coffee market is no longer dominated solely by %Arabica. Chain brands such as Luckin and independent cafes featuring highland barley wine have entered the market, giving consumers more diverse choices. Front Street Coffee will also continue to follow up on subsequent developments. [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…]

Recently, consumers in Qingyuan, Guangdong discovered that the mini-program of the chain tea beverage brand CoCo都可 no longer shows any local stores, indicating that the brand has quietly withdrawn from the Qingyuan market. As a veteran Taiwanese tea beverage brand founded in 1997, CoCo都可 accompanied a generation as they grew up, and its classic Milk Tea Three Brothers and Fresh Passion Fruit Double Punch were favorites for many. However, in recent years competition in the tea beverage sector has intensified, with emerging brands such as Chagee and Sexy Tea continually appearing. Although CoCo都可 has carried out co-branded campaigns and overseas expansion, the results seem to have fallen short of expectations. On social platforms, many users have reported that nearby stores have quietly disappeared, and data show that the number of its closures has exceeded its existing stores. What exactly has caused this brand, once bustling with customers, to fall into a wave of closures? This article will analyze from the perspectives of the market environment, product competitiveness, and operating costs. [more…]

At noon on August 17, a violent conflict broke out between staff and customers at a Heytea franchise store in a Wanda Plaza in Luoyang, Henan. The two sides exchanged insults and threw items from the counter, leaving the scene in chaos. The incident quickly trended on Weibo, drawing widespread attention. After the incident, the store closed early for rectification, and the two parties involved reached a settlement. The next day, Heytea's official ordering mini-program showed the store as being in "temporary closure" mode, and the brand's customer service declined to comment on the reason for the closure. This article sorts through the course of the incident, witness accounts, and responses from all sides to present the full picture of the conflict. [more…]

Recently, students near Shanghai's University Road discovered that the Tims Coffee University Road store, which had accompanied them for over five years, was dismantling its signage and quietly closing down. When it opened in 2019, this store was the largest location Tims had in Shanghai after entering the city. Comprising a two-story North American-style wooden cabin with a total area exceeding 400 square meters, it was not only a landmark meeting spot for nearby residents but also a carrier of youthful memories for many university students who studied, dated, and prepared for exams off campus. Its sudden closure has sparked widespread attention and regret, as well as various speculations about the reasons behind it. This article will revisit the unique features of this store, present the real reactions of customers, and sort out the possible reasons for its closure. [more…]