Recently, a newly resigned worker posted on social media accusing a Luckin Coffee franchise store in Shandong of unreasonable employment practices, claiming that after four days of training they received only 4 yuan in wages. The incident quickly sparked heated discussion among netizens, with many suggesting seeking help through police report or labor arbitration. Subsequently, the store manager recalculated the pay at 10 yuan per hour for 25 work hours. Other netizens also reported similar experiences at the same store. Front Street Coffee is paying attention to this matter and calls on the brand to intervene to protect workers' lawful rights and interests, while also reminding coffee enthusiasts to be aware of how employment misconduct at franchise stores can negatively impact the brand's image. [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…]

After the renovation of Heytea's Ganzhou Market store in Zhangye, Gansu was completed, the sign was quietly changed to "Yicha," and the QR code for Heytea's mini-program was still posted at the entrance, but the store's information could no longer be found through official channels. From the buzz of check-in photos sparked by the opening of the first store, to the second store remaining unopened for a long time after hoarding was put up, and then to both stores disappearing from the official mini-program, this series of changes was actually related to the rules for distributing city-limited fridge magnets. Now the "Yicha" reopened at the original site has no connection to Heytea officially, and its font has even been questioned by netizens as infringing. Local consumers' expectations were dashed, and they still hope the brand can re-enter Zhangye. [more…]

China Post recently made a high-profile announcement declaring the Xiamen Guomao Building Post Office Coffee the "first in the country," but this has sparked questions from post office coffee shops that have already opened in multiple locations. From negotiations for authorization at the Beijing headquarters in 2021, to the establishment and operation of Shanghai Zhongyu Jiaye, and then to the Zhongshan Postal Branch claiming that authorized stores already existed last December, a dispute over "first" and "authentic" has surfaced. Contradictions between the official WeChat account's statements and local declarations, along with rumors of franchising, have made the situation even more confusing. This article will sort out the timeline of Post Office Coffee, the claims of all parties, and the focal points of the controversy, and include professional coffee news to help you clarify the truth behind this mix-up. [more…]

Once regarded as one of the representatives of domestic specialty coffee, Seesaw, after experiencing a wave of store closures in multiple locations at the end of last year, officially announced the opening of cooperative franchising on its twelfth anniversary. This move has sparked much speculation about its financial condition and brand prospects. Currently, competition in the coffee sector is intensifying, with similar brands such as Manner and M Stand far exceeding Seesaw in store scale, while giants like Starbucks and Luckin are also continuously ramping up their efforts. Facing fewer than a hundred operating stores, Seesaw has chosen to seek a market breakthrough through franchising. Whether it can use this to stabilize its position and expand its customer base still needs to be tested by time. This article will review Seesaw's recent developments and the industry background for coffee enthusiasts' reference. [more…]

Recently, a former employee of a HEYTEA franchise store publicly shared on social media their experience of unfair employment treatment, quickly sparking heated discussion among netizens. The employee posted clock-in records and chat screenshots, pointing out that they had worked overtime for a long time without ever receiving overtime pay, but were instead deducted 700 yuan for being late, and the promised base salary did not match reality. More notably, the franchise store's autonomy in salary management made it difficult to protect employee rights, bringing the disparity in treatment between directly operated stores and franchise stores to the surface. This article summarizes the course of events and various viewpoints for reference by coffee industry practitioners. [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…]

Seesaw, once a thriving specialty coffee chain brand, now frequently makes the news due to legal issues. From being sued by former landlords, to multiple disputes with suppliers and former employees, to mass store closures in first-tier cities and a move to lower-tier markets with lackluster reviews, Seesaw's situation has drawn the attention and concern of many coffee enthusiasts. This article will review the recent turmoil surrounding Seesaw, analyze the operational difficulties behind it, and retain relevant recommendations from Front Street Coffee. [more…]

Tims China recently announced the launch of its "Partner Program," initially opening single-store franchising in Shanghai and Beijing, marking a shift in its franchising strategy from city-level franchising to a single-store model. However, the startup capital of over 600,000 yuan, its persistently loss-making financial performance, and the fiercely competitive market environment have sparked widespread discussion about this move. This article sorts through Tims' franchising details, cost structure, market background, and consumer feedback, exploring whether, amid intensifying competition in the coffee sector, opening single-store franchising is its "big move" to accelerate expansion or a reluctant response to difficult circumstances. [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…]

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…]

Luckin Coffee recently announced through its official WeChat account the launch of a "bring-your-own-store franchise" model, opening joint-operation partnerships to investors who are currently operating stores or own commercial properties. The policy has not yet disclosed specific franchise conditions or revenue-sharing plans, but it has clearly defined construction requirements such as store location, area, and storefront signage, and will initially cover 241 cities nationwide, with a focus on avoiding saturated tier-one and tier-two markets. This move is seen as helping Luckin seize more prime locations and attract investors who had originally planned to franchise with other brands such as Cotti to "switch banners" and join. Against the backdrop of ongoing cutthroat competition in the coffee market, Luckin has officially entered the era of 10,000 stores, accelerating expansion through a combined strategy of self-operation, joint operation, and bring-your-own-store franchising. [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…]

For many coffee lovers, buying coffee from a regular store every day has become a habit, and some even buy dozens or hundreds of cups in advance at the store to store there and collect them day by day later. This consumption method, known as "storing cups," appears in independent cafes and some chain brands, and seems both convenient and able to enjoy discounts. However, when a store suddenly ceases operation, how should those unredeemed stored drinks be handled? Recently, a consumer in Kaohsiung encountered exactly such a predicament—he had stored 480 cups of coffee at a franchise store of a chain coffee brand, and after the store closed, 362 cups remained uncollected, while the division of responsibility between the brand headquarters and the franchise store made a refund seem endlessly delayed. [more…]

The trademark and unfair competition dispute between Chayan Yuese and Chayan Guanse has finally reached a阶段性 result. The Tianxin District People's Court of Changsha ruled in the first instance that Chayan Guanse lost the case and must stop the relevant infringing publicity and compensate Chayan Yuese 1.7 million yuan in total for economic losses and reasonable legal costs. This years-long tug-of-war over rights protection, from Chayan Guanse taking the initiative to sue Chayan Yuese, to Chayan Yuese resolutely filing a counterclaim and ultimately winning, has been full of twists and turns. Founded in 2013, Chayan Yuese is a well-known local milk tea brand in Changsha, featuring a Chinese style and adhering to a direct-operation model for a long time. It was only in 2020 that it expanded beyond Changsha to Wuhan, Shenzhen, and other places. After winning the case, the brand announced that it would issue discount coupons to members in celebration. This article sorts out the ins and outs of the case, the brand's development history, and the background related to its Logo design, providing a comprehensive interpretation for coffee and tea beverage enthusiasts. [more…]

The first Heytea store in Chongqing's Beicheng district has suddenly closed. This store, which had been highly popular since opening in 2018, was once regarded as a landmark presence for the brand in the Chongqing market. The closure surprised many loyal customers, and Heytea's subsequent internal email announcing the suspension of business partnership applications caused even more waves in the tea beverage industry. From the end of its first Chongqing store to the successive closures or suspensions of stores in Zibo, Xuecheng, Binhu and other places, and then to the company's proactive halt of franchise expansion, Heytea's series of moves have sparked widespread discussion about brand strategy adjustment, store quality control, and the competitive landscape of the industry. [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…]

An "Important Notice" bearing the name of a Nayuki store has been circulating on social media, prominently stating "If you can drink milk tea, don't drink water," and calling on people to leave water for children who cannot drink milk tea. The store claimed this was imitating an internet meme, meant only as a joke, but with the black-and-white A4 paper sitting on the counter, many consumers felt it had gone beyond a joke and could easily mislead the public. As the topic trended on social media, Nayuki's headquarters responded that it was the action of an individual franchise store and had ordered the removal of the related content. Why do meme-based marketing campaigns frequently backfire? And where exactly lies the management boundary between brands and franchise stores? [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…]

Starbucks' latest financial report shows that in the third quarter of fiscal year 2024, its China revenue fell 11% year-on-year, comparable store sales dropped 14%, and both average ticket size and transaction volume declined. Facing store expansion and price competition from local brands such as Luckin and Cotti, Starbucks CEO Laxman Narasimhan revealed at the earnings call that the company is in the early stages of exploring strategic partnerships and may accelerate growth in the future through a more open model. This statement sparked speculation about whether it will open up franchising. Notably, Starbucks China co-CEO Liu Wenjuan emphasized that the brand has remained restrained in an environment of frequent promotions and refused to be dragged into a price war. Front Street Coffee will also continue to follow this coffee giant's shift in strategy in China. [more…]