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…]

As the year draws to a close, chain brands are accelerating their entry, franchise thresholds keep dropping, and the price war is intensifying. Under the weight of these three pressures, a group of independent coffee shops that have been barely hanging on are hastening toward their end. On social platforms, news of countdowns to closure, store transfers, and coffee machines being sold off cheaply floods the feeds. From shop owners to part-time employees to second-hand equipment dealers, everyone is witnessing this surging wave of closures. Through multiple real cases, this article reconstructs the harsh reality of today's coffee entrepreneurship track. [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…]

Since early November, news of Hee Tea closing stores in multiple cities has emerged one after another, sparking widespread attention. Some netizens reported that stores they frequented suddenly ceased operations—not for renovation and upgrades, but for permanent closure. According to statistics, stores closed in November include the Ganzhou Market store in Zhangye, Gansu; the Lanzhou Guofang Department Store store; and the Zhejiang University Zijingang Campus store, among other locations. Among them were both established stores that had operated for a decade and new stores that had been open for less than six months. This phenomenon is believed to be related to an internal letter Hee Tea released in September, which stated that the company would no longer pursue short-term store-opening speed and would instead focus on store quality and operational excellence. At the same time, a blogger claiming to be a city partner revealed that Hee Tea's franchise policy is being adjusted, with applications becoming more difficult, store-building costs increasing, and even a trend of "restricting new store openings and encouraging closures." [more…]

The T97 Coffee livestream, which once drew 8.09 million viewers, has now shrunk to a mere four hours in the evening with a sparse audience. Founder Li Xiao once boldly claimed he would open 1,001 stores in a year to surpass Luckin, but official data shows the number of stores rose from 48 to 87 before falling back to 85, with multiple locations closing one after another. Li Xiao attributed the closures to individual franchisee issues, but many franchisees report that the brand provides little management and support, product quality is inconsistent, and once the hype faded, operations became unsustainable. This article examines the current situation of T97 Coffee franchisees, explores brand responsibility and franchise risks behind the high closure rate, and offers reference for those considering joining. [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…]

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…]

Recently, the Heytea store in Dalian Roosevelt Plaza was reported to have ceased operations, and the site was quickly taken over by another brand's hoarding. This store, which opened in May 2020 and once sparked queuing frenzies, was Dalian's first directly operated store, and its sudden withdrawal surprised many consumers. According to GeoHey brand monitoring data, although Heytea opened new stores in the past 90 days, it also closed 161 stores, with the total number in operation dropping from 4,410 to 4,265, equivalent to about 2 stores disappearing every day. The closures were not limited to franchise stores; some directly operated stores that had been in business for years also exited due to factors such as rent and contracts. The impact of this round of adjustment on the brand's future remains to be seen. [more…]

Recently, a social media user alleged that Nayuki is about to face a wave of store closures in Taizhou, Zhejiang, and the news quickly sparked widespread discussion. According to Nayuki's official Q3 2024 operational report, the brand closed a total of 89 directly operated stores during the quarter. Although it opened 23 new directly operated stores and 56 franchise stores in the same period, its overall store count still shrank by 10. Compared with Heytea, which has already reached 4,417 stores, Nayuki's pace of expansion has clearly slowed. The company said it will adopt a more prudent store expansion strategy and optimize the performance of existing directly operated stores, but many consumers have reported issues such as declining product quality control and baked bread being switched from freshly baked to pre-made products, raising concerns about the brand's prospects. This article will examine Nayuki's current operational challenges from two dimensions: data and consumer feedback. [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…]

Pacific Coffee has once again become the focus of industry attention. Recently, reports have emerged that multiple stores in Zhuhai will close in mid-October due to business adjustments, including the Huafa Waterfront Store, Haitian Station Store, and City Balcony Store, all distinctive locations along the Couple's Road. After this round of adjustments, Pacific Coffee's directly operated stores in Zhuhai will all be withdrawn, leaving only three franchise stores. From a peak of nearly 500 stores to fewer than 100 today, the situation of this former second-largest coffee chain brand in China's coffee market is lamentable. This article will review the specific circumstances of these closures, the brand's contraction trajectory in recent years, and the complex emotions of coffee enthusiasts regarding Pacific Coffee's current situation. [more…]

Recently, Heycha has seen store closures in many places across the country, drawing attention from consumers and the industry. Two stores in Baoji, Shaanxi, have suspended operations one after another, and stores in Shenzhen, Hangzhou, Qingdao and other places have also disappeared or reduced their scale. According to GeoHey brand monitoring data, in the past 90 days Heycha opened 12 new stores, but the number of closures reached 146, equivalent to nearly 2 stores disappearing from cities every day. After suspending franchise expansion, the brand intends to improve store product quality and selectively close stores with poor profitability, but the large number of closures is still surprising. As coffee enthusiasts, Front Street Coffee continues to follow the dynamic changes in the tea beverage and coffee markets, and this article sorts out cases from various places and industry interpretations of Heycha's current wave of store closures. [more…]

Once upon a time, a cup of milk tea was a staple of young people's daily consumption, and the tea beverage sector was once regarded as a hotbed of entrepreneurship. However, the latest data shows that in the past year, about 130,000 milk tea shops across the country quietly exited the market, with an average of more than 350 operators choosing to close their stores every day. Even leading brands such as Heytea and Nayuki's Tea have found it hard to escape store closures for their first outlets in some cities. A peak season that is not peak, cutthroat price competition, and rising franchise risks have plunged this once-booming industry into a deep round of reshuffling. This article, drawing on data from multiple sources including Zhaomen Catering and Jihai Brand Monitoring, analyzes the multiple reasons behind the large-scale contraction of tea beverage stores. [more…]

Seesaw Coffee, once regarded as one of the representatives of domestic specialty coffee, has seen a sharp shrinkage in its number of stores within just half a year. From the end of last year to June this year, a total of 50 stores across the country quietly disappeared, with store closures reported one after another in places such as Hangzhou and Suzhou, drawing attention from consumers and the industry. At the same time, Seesaw has not stopped expanding, but instead has turned its sights to smaller cities with relatively less intense competition, such as Guiyang and Luoyang, attempting to find a new way out through a franchise model. Against the backdrop of an increasingly fierce price war in the coffee market, the adjustments and struggles of this specialty coffee brand reflect the survival pressure facing the entire industry. [more…]

Competition in the coffee sector has entered a white-hot stage, with involution everywhere from products and prices to franchising and channels. Data from Canbaodian shows that the coffee shop closure rate is 13.3%, lower than the restaurant industry average of 22.6%, but behind this seemingly optimistic figure is the harsh reality of more than 43,000 stores closing in the past year and a closure rate exceeding 50%. Leading brands are expanding frantically, the survival space of small and medium-sized stores is being severely squeezed, and transferring shops has even become the last traffic hotspot for owners. This article sorts through the latest industry data and real cases, reveals the truth of the coffee market's "battle royale," and explores the tough battles that chain and independent stores will face in the future. [more…]

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…]

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…]

Following the closure of the last store of its sub-brand Xixiaocha, Heytea confirmed on November 3 that it will open franchising, with partnership fees kept under 500,000 yuan and franchise store formats primarily under 50 square meters. Heytea stated it will leverage a decade of accumulated experience and resources to develop its partnership business in non-first-tier cities with suitable store formats, providing partners with comprehensive support in branding, products, quality control, food safety, operations, training, and supply chain. In recent years, Heytea has accelerated its expansion into lower-tier markets, successively adjusting prices, launching IP collaborations, and shutting down its budget sub-brand. Opening franchising is now seen as a key step to further capture market share in third- and fourth-tier cities. Whether the new tea beverage sector will face a new round of involution, and whether direct-operated brand Nayuki will follow suit, remains worth watching. [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…]

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…]