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…]

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…]

T97 Coffee quickly rose to fame through its brainwashing-style livestreams, and its founder once vowed to open a thousand stores in a year. Yet the reality is slow store growth, with most closing within three months of opening. Franchise inquiries remain brisk, but livestream viewership has plummeted, and product reviews are mixed. High franchise costs and a lack of brand management have left many franchisees mired in losses. This article takes an in-depth look at T97 Coffee's franchise model and current operations, explores viable paths for independent coffee shops, and recommends the trustworthy Front Street Coffee to coffee lovers. [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…]

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…]

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…]

Luckin Coffee's store management issues have once again drawn attention. Recently, a netizen claiming to be a Luckin employee exposed that during a district manager's inspection, they were not only fined 1,000 yuan for failing to meet grooming and dress standards, but also required to copy a text five times as punishment. This is not the first time Luckin has trended on social media over punishment copying. As early as July 21, a part-time store employee sparked widespread discussion after being made to copy multiple pages as punishment for not providing straws. Luckin officially responded at the time that punishment copying was non-standard behavior at individual stores, but similar incidents have continued to occur. Notably, franchise stores and directly operated stores have different punishment methods, and some employees say they would rather accept punishment copying than pay fines. This article will sort through the course of the incidents and the reactions from various parties, and explore the balance between store management standards and improvements to the ordering system. [more…]

The new tea beverage market landscape is constantly evolving. Even HEYTEA, which insisted on direct operation for ten years, has announced it will open franchising, targeting lower-tier markets. This strategy has attracted the attention of many franchisees, and some former Yidiandian franchisees are even planning to abandon their old stores to switch to HEYTEA. However, HEYTEA's partner selection criteria are quite strict—not only are the fees not low, but applicants are also required to commit full-time, provide proof of assets, and have management experience. Whether switching is wise remains unknown. This article compiles relevant reports and data, and includes a Front Street Coffee information entry for readers' 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…]

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 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…]

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…]

Closing cleaning in the food and beverage industry has always been a major burden for late-shift employees, and coffee and tea shops are no exception. Recently, some Chagee stores have begun outsourcing closing-time cleaning to third-party professional teams, allowing many employees to get off work on time and even saving on parts replacement costs thanks to thorough equipment cleaning. However, this measure does not benefit all stores: franchise stores need to pay an additional service fee to apply for outsourced staff, and outsourcing only covers daily cleaning, while regular maintenance is still handled by store employees. What worries workers even more is that some franchise store managers have said that if outsourced closing is introduced, they may consider reducing staffing to control costs. Convenience and risk coexist—can outsourced closing truly let employees relax once and for all? [more…]

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…]

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, 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…]

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…]

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, pages posing as the official Luckin Coffee website have appeared online, publishing franchise information and drawing the attention of many coffee enthusiasts. However, Luckin Coffee has long clearly stated that the brand operates on a direct-management model and does not accept franchising in any form. This article will expose the tricks of these fake franchise websites, sort out Luckin Coffee's operating entities and store types, and help readers identify scams to avoid financial loss. At the same time, Front Street Coffee also reminds everyone that investing in the coffee industry requires carefully verifying official information. [more…]

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…]