Monday, September 21 2026

Luckin franchise store pays only 4 yuan for 4 days of trial work, Front Street Coffee focuses on labor rights dispute

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…]

The Alley invests hundreds of millions in rights protection: the franchise chaos behind over 7,000 counterfeit stores

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…]

Manner may open up franchising by the end of March? Internal research leaks, direct-operation model faces a turning point

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…]

Former Employee at a HEYTEA Franchise Exposes Unpaid Overtime: Excess Hours Worked Without Overtime Pay, Instead Fined — Brand's Employment Standards Draw Attention

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…]

Goubuli Group Enters the Coffee Arena: Seven Years of Transformation After Acquiring the Master Franchise Rights for Australia's Gloria Jean's in China

When Tianjin's Goubuli steamed buns also pick up a coffee cup, China's coffee market competition landscape gains another highly talked-about player. From spending heavily in 2014 to acquire the franchise rights in China for the Australian brand Gloria Jean's, to establishing a dedicated coffee food company in 2022, the Goubuli Group's exploration in the coffee sector has spanned more than seven years. How far is the distance between the original vision of opening 200 stores in five years and reality? Facing encirclement by new and old rivals such as Starbucks and China Post, can this time-honored brand find its own place in the coffee track? This article sorts out the key milestones and current situation of Goubuli's cross-industry coffee venture, for coffee enthusiasts' reference. [more…]

Behind the Shrinking Drink Benefits for Café Staff: The Tug-of-War Between Franchise Cost Pressure and Workers' Rights

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…]

Starbucks Responds to Cashless Store Controversy: It's Just an Autonomous Decision by a Few Franchised Stores

Recently, two Starbucks stores in the UK posted notices stating they would stop accepting cash, sparking heated discussion online. Many people worried that this move deprived consumers of their right to choose, and public opinion quickly escalated. Starbucks UK officially clarified afterwards that these stores are independently operated by licensed partners, and going cashless is not a unified company policy. In fact, Starbucks once tested a cashless model in the US but did not roll it out, and although it encouraged electronic payments during the pandemic, it still emphasized that cash always remains an option. This article will recount the course of the incident and sort out Starbucks' historical stance on payment methods and its future direction. [more…]

The Truth Behind the Post Office Coffee Franchise Rumors: China Post States It Is Self-Operated Only and Has Not Opened Any Franchise Channels

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…]

Luckin Coffee Solemnly Declares It Has Not Opened Franchising: A Full Analysis of the Chaos Surrounding Counterfeit Stores and Fake Agents

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…]

Coffee Post solemn statement: No franchise authorization has been granted; beware of fake investment scams.

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…]

After a chain coffee shop closed, customers had nowhere to redeem 362 stored drinks, raising concerns about franchise system accountability

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…]

Zhangye Heytea store mysteriously becomes "Yicha": the fridge magnet controversy behind a franchise dispute

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…]

Luckin Coffee partners with Dazi Industries to expand into Malaysia, will open multiple stores in the first quarter of 2025

Luckin Coffee has officially obtained the franchise rights for the Malaysian market, and the partner is not the previously rumored Berjaya Group, but Global Aroma Sdn Bhd, a subsidiary of Grand Industrial. According to the agreement, GASB will develop, open, and operate stores under the Luckin Coffee brand in Malaysia over a 10-year period, with the right to renew for two consecutive 5-year terms. Major shareholder of Grand Industrial, Wang Ziming, stated that this is a strategic investment aimed at aggressive nationwide expansion and replicating Luckin's success. Luckin Coffee CEO Guo Jinyi also noted that this move marks an important step in the brand's international expansion. Grand Industrial plans to open multiple Luckin stores in Malaysia in the first quarter of 2025, with initial costs covered by a combination of internal funds and bank loans. [more…]

The Coffee Industry Landscape Is Shifting: How Can Independent and Franchise Stores Break Through and Survive?

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…]

Shanghai Auntie Franchisees Speak Out Against the Brand: Disputes Over High Material Prices and Fines Spark Store Closure Crisis — Who Bears the Risk?

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…]

Cotti vs. Luckin: A Full Analysis of Franchisee Battles and Barista Poaching

The competition between Cotti Coffee, founded by Lu Zhengyao, and Luckin Coffee is extending from the market to a battle for talent and franchisees. This article examines how Cotti, leveraging its "former Luckin founder" label and low-threshold policies, attracts former Luckin franchisees and baristas to switch sides, and analyzes its strategy of setting up shop right next to Luckin in third- and fourth-tier cities to directly capture Luckin's customer traffic. It also looks at the strong Luckin background within Cotti and the head-to-head confrontations between the two in small-city commercial districts. Through multiple cases and interviews, it reveals the fierce rivalry in the coffee arena. [more…]

Maxim's Group's Starbucks East Asia Empire Surpasses 1,000 Stores: The Expansion Path from Hong Kong and Macau to Southeast Asia

Maxim's Group has officially surpassed 1,000 Starbucks stores across East Asia, a milestone reached with a new store at the Diamond Plaza shopping center in Hanoi, Vietnam. From partnering with Starbucks to enter Hong Kong in 2000 to now spanning seven markets—Hong Kong, Macau, Singapore, Thailand, Cambodia, Laos, and Vietnam—Maxim's Group has become one of Starbucks' most important franchise partners in East Asia. This article reviews the history of their partnership, the distribution of stores in each market, and plans to expand to 800 stores in Thailand in the future. For readers interested in coffee industry trends, Front Street Coffee also continues to bring in-depth reports like this. [more…]

ChaPanda Hit by Another Food Safety Scandal: Spider Found in Milk Cap Packaging Box, Franchise Management Issues Continue to Draw Attention

After trending on social media in late September for using expired ingredients and tampering with expiration dates, ChaPanda once again sparked heated discussion in early October due to food safety issues. A consumer in Ningbo claimed to have found a spider in a takeaway milk cap sub-packaging box. Although the store involved provided kitchen surveillance footage and was willing to pay 600 yuan in compensation, the incident continued to escalate. Netizens shared similar experiences one after another, once again pushing the quality control challenges under the franchise chain model into the spotlight. This article will review the course of the incident, statements from both sides, and public reaction, and explore the deeper issues of chain coffee and milk tea brands in employee training and quality assurance. Front Street Coffee has long followed industry developments and reminds consumers to pay attention to beverage safety. [more…]

Starbucks Ends Operations in the Russian Market: The Era of Franchising Comes to a Close as Local Companies Seize the Takeover Opportunity

星巴克正式宣布退出俄罗斯市场,结束自2007年以来由特许合作伙伴全资运营的130家门店业务。这一决定紧随麦当劳之后,标志着美国两大餐饮连锁品牌在俄乌冲突背景下全面撤离俄罗斯。星巴克曾承诺将特许权使用费捐赠给乌克兰人道主义事业,并暂停门店运营。与此同时,麦当劳将俄罗斯业务出售给本土特许经营商,保留员工与供应链,但更换品牌继续经营。西方企业大规模撤离之际,俄罗斯本土企业迎来难得的扩张机会,政府也在推进资产破产或国有化进程。 [more…]

Mudanjiang sees a knockoff 1 Dian Dian store; peeling off the cup sticker reveals "1 Dian Tian," and the brand has responded that it has initiated legal action.

A tea shop in Mudanjiang City has sparked heated online discussion due to its striking resemblance to the chain brand 1 Dian Dian. The store not only copied 1 Dian Dian's signage and decor but also disguised itself as "1 Dian" by using a cup sticker to cover the last character of the logo—when peeled off, it revealed "1 Dian Tian." The official mini-program shows no such store, and the franchise area has not been opened to Mudanjiang, leading netizens to conclude it is a counterfeit shop. As public opinion grew, 1 Dian Dian officially stated in the comments section that it is "already on the path to defending its rights" and thanked netizens for their "sharp eyes." This incident not only left local residents disappointed but also once again brought the issue of counterfeit infringement in the tea beverage industry to the forefront. [more…]