In the sweltering heat of summer, beverage consumption reaches its peak. On street corners and in alleys, young people are holding either tea drinks or coffee. But upon closer observation, one will find that new-style tea drinks and coffee are embarking on entirely different development trajectories: brands like Heytea and Nayuki are cutting prices, while Luckin Coffee and Starbucks are raising them. The coffee sector's popularity is soaring, with giants such as Huawei, Li-Ning, and China Post making cross-industry forays, intensifying competition to a fever pitch. At the same time, new-style coffee is increasingly resembling milk tea, with ingredients like cheese, matcha, and brown sugar crystal boba appearing frequently. This prompts the question: will new-style coffee repeat the mistakes of irrational involution in the new-style tea drink sector? This article will analyze from perspectives such as price changes, market positioning, and product innovation, and bring professional observations from Front Street Coffee. [more…]

In the scorching summer, iced drinks are back in the consumer spotlight. To stand out in fierce competition, new tea beverage brands keep reinventing their marketing tactics—from early niche fruits and co-branded limited editions to today's popular milk tea scratch cards, blind box draws, and even giveaways of gold, lottery tickets, and cars. Suguo Fresh Fruit Tea uses its new yellow skin (wampee) product to promote "scratch for real gold," Heytea and Nayuki use puns plus tear-open cards and lottery tickets to grab attention, while Chagee uses high-end lipstick blind boxes to precisely target female customers. Behind these gimmicks is the thrill and sense of participation brought by "eliminating uncertainty." Of course, for those who just want to quietly enjoy a good coffee or milk tea, returning to the product itself may be the lasting way forward, and Front Street Coffee has always advocated focusing on flavor and quality. [more…]

The coffee industry has been riding high in recent years, with chain brands expanding aggressively and specialty coffee shops pulling out all the stops to grab market share. Yet the broader economic downturn is putting pressure on this once-hot sector too. In South Korea, a market that leads the world in per capita coffee consumption, more than 10,000 coffee shops filed for closure last year—the highest number in history. Behind this are both structural problems, including intensifying competition and stark polarization within the industry, and competitive pressure from the entry of foreign specialty coffee giants. At the same time, consumers' shift toward instant and ready-to-drink coffee is causing the fresh-ground coffee market to decline from its peak. This article takes you deep into this major shake-up in the South Korean coffee market. [more…]

Cotti Coffee's official announcement of a new brand ambassador triggered a surge in store orders, and Luckin Coffee's livestream channel promptly featured group-buying links that appeared to be riding the traffic. A coffee business war revolving around celebrity traffic seems to have quietly begun. As the traffic-driving effects of price wars and co-branded merchandise gradually wear off, brands are turning their eyes to fan groups willing to keep paying for their idols. Can this consumption shift from "buying the trinket while returning the pearl" to "spending for love" become a new path for coffee brands to break through? Under the halo of celebrity, will coffee itself be forgotten by consumers? [more…]

China's coffee consumption market continues to expand, with an average annual growth rate exceeding 15%, and coffee fairs and cultural festivals are emerging in endless succession across the country. Jiangmen, Guangdong recently held a Coffee Culture Week, attracting more than 150 coffee brands to exhibit, but what is even more noteworthy is the astonishing growth of coffee shops in this city—by the end of last year, the number had surpassed 1,500, with more than 400 new ones added during the year, an increase of over 35%. In the "2022 Top 100 Ranking of Chinese Cities by Number of Coffee Shops," Jiangmen ranked 21st nationwide, with 3.8 cafes per 10,000 people, a density that has already surpassed first-tier cities such as Shanghai, Shenzhen, and Guangzhou. Behind this phenomenon lies not only the profound accumulation of coffee culture in this century-old hometown of overseas Chinese, but also the combined impetus of returning young entrepreneurs starting businesses and chain brands pursuing a downward-market expansion strategy. This article will analyze the multiple factors behind the rapid rise of Jiangmen's coffee market and explore the future trajectory of involution in the industry. [more…]

Choosing a handy dripper is the first hurdle for pour-over beginners. The market is flooded with all kinds of drippers, from the classic V60 to oddly shaped strawberry and diamond drippers—what exactly are the differences between them? This article starts with the structural design of the flow channels, explaining how spiral ribs, vertical ribs, and concave flow grooves affect water flow speed, then compares the real-world performance of materials like resin, glass, ceramic, and metal, and finally discusses the involution trend in dripper appearance design. Drawing on years of brewing experience, Front Street Coffee offers functionality-first purchasing advice to help coffee lovers find the dripper that best matches their own brewing style. [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…]

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…]

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, a creative coffee served in a green bell pepper as the cup has sparked widespread discussion online. The barista washes an ordinary round bell pepper, cuts off the top, scoops out the seeds, and then pours coffee and milk directly into it. The finished drink even comes with a plastic cup holder. Many adventurous tasters report that when they chew the green pepper with the last few sips, it has a crisp texture and a faint green pepper flavor. Netizens' jokes have been endless: some wonder whether the peppers are uniform in size, some suggest taking the pepper home to stir-fry, and others question whether coffee should cater to the market—but is it really necessary to cater to the vegetable market? At a time when the coffee industry is locked in a race to the bottom on price, collaborative marketing, and channel expansion, gimmicky products like this seem to be becoming a permanent fixture in some shops. Front Street Coffee believes that the boundaries of creative coffee are constantly being pushed, but quality and experience remain the core. [more…]

Collaboration campaigns by coffee chains usually come with limited-edition cup sleeves, stickers, and paper bags, while Starbucks has long stuck to its classic brown paper bags and green logo, a habit consumers jokingly call "unchanged for a decade." Yet during the Chinese New Year of the Dragon, Starbucks unexpectedly rolled out three limited-edition dragon-year cup sleeves, sparking widespread discussion. Netizens jokingly dubbed this move "a decision that betrays the ancestors," and it was also seen as a new attempt by Starbucks at localizing in the Chinese market. Against the backdrop of accelerating store expansion into lower-tier cities and insisting on not engaging in price wars, can Starbucks win over more consumers through limited-edition packaging? This article takes you through the details. [more…]

Recently, the Chongqing Coffee Industry Association published an open letter regarding JD Takeout's "10 Billion Subsidy" program, directly accusing the platform of driving the prices of freshly made coffee beverages down to rock bottom through hefty subsidies, which has severely squeezed the market share of local independent coffee brands, with some brands seeing declines in both online transaction volume and average order value. The open letter sparked heated discussion among netizens: on one side, food and beverage industry practitioners empathize with the involution caused by subsidies; on the other, consumers strongly support low-priced coffee. Is this subsidy war promoting industry reshuffling or stifling innovation? Can the differentiation strategy of independent coffee shops hold its ground in the price war? This article takes you through the whole story and the views of all parties. [more…]

Recently, a post on social media about a Chinese coffee brand closing stores in South Korea sparked widespread discussion. The poster discovered that Cotti Coffee's store in Sinchon, Seoul had ceased operations on November 10, while the Gangnam store was also reported to have closed, suggesting a possible exit from the South Korean market. Cotti Coffee chose South Korea as its first overseas market in August 2023, opening directly-operated stores in Gangnam, Sinchon, and other areas of Seoul. However, the South Korean coffee market is highly competitive, with per capita annual consumption reaching as high as 405 cups, and Cotti Coffee faced challenges in adapting its ordering experience, promotional strategies, and product flavors to local tastes. Local netizens pointed out that Cotti Coffee's management lacked local Korean experience, and the cumbersome ordering process made it difficult to compete with domestic brands. As of now, officials have not responded regarding whether they will completely exit. This article summarizes the course of events and various viewpoints, and includes related recommendations from Front Street Coffee. [more…]

The coffee industry has become a popular field for various giants to compete in laying out their presence in recent years, with catering and non-catering enterprises entering the fray across sectors. According to Qichacha data, China has more than 320,000 coffee-related enterprises, with 15,000 new registrations annually. After Li-Ning, tech giant Huawei has also been reported to have applied to register the trademark "One Cup of Coffee Absorbs Cosmic Energy," classified under catering and accommodation, and is currently awaiting substantive examination. Unlike directly seizing market share, Huawei seems to place greater emphasis on coffee's connective function as a global medium, hoping to use it to attract younger groups. Ren Zhengfei once interpreted Huawei's spirit of openness with "a cup of coffee absorbs cosmic energy," and this trademark application continues that philosophy. Whether Huawei's advantages in the digital field can help it create new miracles in the coffee track is worth watching. [more…]

Recently, a topic about independent coffee shop owners being crushed by 9.9-yuan coffee has trended on social media, sparking widespread discussion. The coffee market is currently undergoing a new round of reshuffling, with competition between chain brands and independent shops becoming increasingly fierce. Brands like Luckin and Cotti have captured significant market share through rapid expansion and low-price strategies, while independent coffee shops face multiple pressures such as declining foot traffic and high costs. Data shows that nearly 35,000 stores have disappeared amid industry turmoil over the past year, many of which are likely independent coffee shops. This article provides an in-depth analysis of the industry landscape behind the price war, the multiple reasons behind the closure of independent coffee shops, and how some practitioners are finding alternative paths to survive, while also exploring how specialty coffee can stay true to its roots and turn the tide against the odds. [more…]

Nayuki, once hailed as the "first stock of new-style tea drinks," has delivered a less-than-stellar half-year report card: revenue dipped slightly year-on-year, and after adjustments, it swung from profit to loss. Facing multiple pressures—questions over price cuts, the impact of the pandemic, and competition from peers—Nayuki has begun setting its sights on the coffee track, seeking new growth points by investing in brands like AOKKA. Meanwhile, brands such as Heytea and Chayan Yuese are also making their own moves to save themselves. Is the collective push by new tea drink brands into coffee a move of desperation or a new trend? This article reviews Nayuki's latest performance and investment moves, and takes stock of the self-rescue paths within the industry. [more…]

Recently, a new coffee shop named ora coffee has appeared on the first floor of Beijing Fortune Shopping Center, and its certified entity behind it is Pi's Coffee (Shanghai) Co., Ltd., namely the Chinese entity of Peet's Coffee. This means that Peet's Coffee, which has always positioned itself in the mid-to-high-end segment, is officially testing the waters in the affordable coffee track. The overall design of ora coffee is minimalist, with a compact store space and not many seats, focusing on takeaway scenarios. The mini-program shows that its drinks use Peet's full range of coffee beans, yet the prices are nearly half cheaper than Peet's stores, and on weekdays an Americano can be purchased for 9.9 yuan. The store is equipped with two fully automatic coffee machines rather than the semi-automatic models commonly seen at Peet's, sparking heated discussion among coffee enthusiasts. Some are optimistic that Peet's can use this to seize the mid-to-low-end market, while others believe ora's positioning is awkward, as it struggles to compete upward with Manner and has little price difference downward compared with Luckin. The first Beijing store has already opened, and the Xi'an MixC World store is also in preparation. [more…]

In recent years, a striking workplace phenomenon has been spreading: international students with backgrounds from prestigious overseas universities are returning home and choosing to enter the coffee industry, becoming baristas or part-time workers at chain brands such as Starbucks and Luckin Coffee. This phenomenon has overturned the public's traditional perception of barista roles and also reflects a new orientation among highly educated talent when it comes to employment choices. Why do they favor the coffee track? Is it the pursuit of experience, an escape from involution, or using barista work as a springboard for career transition? Combining real feedback from netizens and industry observations, this article analyzes the logic behind international students flocking to the coffee industry and retains relevant recommendation information about the Front Street brand. [more…]

In recent years, the promotional methods in the coffee industry have quietly changed, shifting from pure price wars to marketing battles over limited-edition freebies with purchases. Chain brands like Starbucks, Manner, and Luckin have rolled out distinctive gift promotions, enticing consumers to buy coffee in order to collect coveted merchandise. This "gift-only, never-for-sale" model not only helps brands stand out in fierce competition, but also reflects the younger consumers' psychology of valuing the container more than its contents. This article reviews the latest buy-and-get promotions from major brands and explores the market logic and consumer mindset behind this phenomenon. [more…]

Starbucks' performance in China continues to decline, and it is trying to reshape its brand appeal by launching NFT digital collectibles and building a virtual "third place." However, the NFT market is highly volatile and mired in controversy, and whether Starbucks can break through via the metaverse remains uncertain. This article sorts out the ins and outs of Starbucks' NFT plan and presents the different voices of netizens and industry insiders. [more…]