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…]

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…]

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…]

As the weather turns colder, information about Cotti Coffee store transfers has noticeably increased on social platforms, including many high-quality stores with monthly net profits of tens of thousands of yuan. Behind the seemingly attractive transfers are transfer fees as high as hundreds of thousands of yuan and long payback periods. Cotti rapidly expanded to more than 6,000 stores thanks to its low-threshold franchising and generous subsidy policies, but the high subsidies also brought high costs and intense competitive pressure. Franchisees are struggling to survive between the price war and commission rules, with some lamenting that they are "helping Cotti build the market, busy but not prosperous." This article will deeply analyze the real survival picture of franchisees under Cotti's subsidy policy and explore the business logic and hidden concerns behind this franchising boom. [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…]

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, 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…]

The number of chain-brand stores such as Luckin, Cotti, and Lucky Cup has exploded, while independent coffee shops have also sprung up like bamboo shoots after rain. Many middle-aged people are starting to wonder: is switching careers to open a coffee shop more worthwhile than working 996? Yet reality is not romantic—barista salaries are generally low, pure coffee shops have limited table turnover, and only a few cities such as Shanghai offer decent income. Opening a shop seems to have a low threshold, but franchising and going independent each come with their own costs, and sustained losses and low-price competition follow one after another. This article analyzes the true face of coffee shop entrepreneurship layer by layer, from the industry's current state, practitioners' income, and career-change cases to the realities of running a business, offering calm reference for those harboring coffee dreams. [more…]

A counterfeit well-known coffee brand trademark case involving over 40 million yuan was recently successfully cracked by Shanghai Qingpu police. The criminal gang recruited franchisees nationwide under the name "Starbucks Coffee Service," falsely claiming to have official franchise qualifications and guiding the opening of counterfeit stores. In January 2024, the police launched a unified arrest operation, apprehending 17 suspects led by Yin. The case exposed a complete criminal chain from production and manufacturing, warehousing and transportation, to business training and marketing consulting, and also sounded an anti-fraud alarm for investors in the franchise chain sector. [more…]

The coffee market is undergoing a new round of reshuffling. The number of coffee shops nationwide has approached 200,000, yet the survival cycle of newly opened stores is worrying. A large number of entrepreneurs are pouring into the coffee sector, including both independent coffee shops and franchise stores of chain brands. However, price wars and homogenized competition have caused many stores to bow out quietly within just two or three months. Under the squeeze of giants' low-price strategies, how can independent cafes balance price and distinctiveness? How should franchisees avoid pitfalls? This article provides an in-depth analysis of the reasons behind the wave of coffee shop closures, and, drawing on brand cases such as Front Street Coffee, explores ways to break through. [more…]

In recent years, the coffee market has continued to heat up, and more and more people are beginning to consider opening a coffee shop of their own. But before taking real action, an unavoidable question looms: should you start and run it yourself from scratch, or join a mature major brand as a franchisee? Each path has its pros and cons. Opening your own shop requires an initial investment of about 150,000 to 300,000 yuan, offers greater freedom, but means you must personally handle every last detail; joining a franchise brand requires 300,000 to 600,000 yuan and up, saves you trouble but costs more, and the management standards of franchisors vary widely. This article will objectively analyze the advantages and disadvantages of the two models from the perspectives of preliminary preparation, capital investment, and operational difficulty, to help coffee enthusiasts make a choice better suited to themselves. [more…]

Recently, multiple coffee shop owners have reported encountering group order scams on social media platforms. The scammers purchase large quantities of coffee drinks under the guise of school or corporate team-building events, then ask the shop owners to purchase gifts such as wagyu beef and Buddha Jumps Over the Wall on their behalf. Working in collusion with so-called suppliers, they set traps that leave shop owners unable to receive goods after payment. This type of scam is particularly frequent in the Guangdong region, with multiple shop owners encountering the same trap on the same day. The scammers use verified corporate accounts and employ consistent scripts, suggesting an organized gang operation. Shop owners have been posting warnings to fellow industry peers, urging them not to let their guard down just because of a large order. Faced with these frequent scams, operators are calling for joint efforts to provide clues to the police, but they face difficulties in getting their cases accepted and filed for investigation when it comes to protecting their rights. [more…]

The well-known tea beverage brand Yihotang has been exposed by media undercover investigations at multiple stores in Zhengzhou for serious food safety issues: ingredients that should have been discarded after closing were used again the next day, expired materials had their labels swapped to extend their shelf life, moldy strawberries were washed and used as usual, flying insects that fell into toppings were fished out and still used in products, and even prepared drinks in which bugs were found were resealed and continued to be sold. Even more shockingly, the staff were indifferent to this, claiming that "as long as it doesn't kill people, it's fine." After the incident was exposed, Yihotang issued an apology statement, and the stores involved were closed for rectification. Lawyers pointed out that the relevant actions have violated multiple provisions of the Food Safety Law. Netizens reacted differently, with some saying that chaos in franchise stores is common, while others called on the brand to effectively fulfill its regulatory responsibilities. [more…]

Recently, multiple NOWWA Coffee franchisees have spoken out on social media, exposing various instances of inaction and unreasonable restrictions by the brand in store operations. From the lack of promotional support in the early stages of opening, to forced inventory allocation, blocked relocations, and products whose flavors are not accepted by consumers, franchisees have expressed regret and helplessness. At the same time, some consumers have also raised doubts about the brand, believing it is difficult for it to compete with chain brands such as Luckin and Cotti. This article will synthesize feedback from franchisees and netizens to sort out the trust and operational crisis currently facing NOWWA Coffee, providing reference for readers interested in coffee franchising. [more…]

Recently, a public toilet in Zhengning County, Qingyang, Gansu, which had been in operation for 30 years, was converted into a Lucky Cup freshly ground coffee shop, sparking heated discussion among local residents and netizens. The second floor of the building is a bathhouse, which is quite well-known locally. After a month of renovation, the coffee brand sign was put up, but then a seal was suddenly affixed. The housing and construction department responded that the project was an illegal conversion because it had not obtained planning and construction permits and had arbitrarily changed the use nature, and it had been sealed according to law. The brand side also stated that the store in question did not meet franchise conditions due to property rights issues and would not pass headquarters review later. The incident reflects the approval and property rights difficulties in converting public facilities for commercial use. [more…]

The dense, golden layer of crema on the surface of an espresso is essentially a foam formed when carbon dioxide inside the coffee beans, carrying aromatic oils, is emulsified under high-pressure water. Freshly roasted coffee beans trap a large amount of gas inside, and this gas is slowly released over time, determining the thickness and condition of the crema during extraction. Understanding [more…]

Freshly roasted coffee beans internally contain a large amount of carbon dioxide. These gases are both an important source of the rich crema layer produced during extraction and, in the early stage, also hinder the even contact between water and flavor compounds. Just-roasted coffee beans need to go through a period of natural degassing, so that the aromatic oils and soluble components inside can gradually [more…]

In 2023, Luckin Coffee achieved a historic breakthrough in sales through its co-branded collaboration with Moutai and its sustained low-price strategy, officially surpassing Starbucks China to become the largest coffee chain brand in China. However, with the scaling back of its 9.9 yuan promotional campaign and a slowdown in store expansion, Luckin's future growth faces new challenges. This article reviews Luckin's path to a comeback, analyzes the key factors behind its success, and explores the profit pressures and market strategy adjustments it currently faces. [more…]

Recently, a customer at a Luckin Coffee store saw a notice posted on the counter that read, "A staff member has a fever, so orders are being prepared more slowly. Please don't rush us." The customer snapped a photo, which quickly sparked widespread discussion online. Some praised the employees' dedication, while others worried that preparing drinks while sick posed food safety risks. However, Luckin employees have expressed their helplessness: it's not that they don't want to rest, but that stores are understaffed and there is no one to cover their shifts, making sick leave almost a luxury. This phenomenon is not unique to Luckin; workers in the tea and coffee industries have all resonated with it. This article will recount the incident and explore the institutional and practical contradictions behind working while sick. [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…]