According to an exclusive Bloomberg report, Starbucks is evaluating multiple deal options for its China business, with selling equity and bringing in local partners both under consideration, and it has already informally gauged the interest of potential investors such as private equity firms. China is Starbucks' second-largest market globally, with more than 7,500 stores, but amid competition from local brands such as Luckin, same-store sales have fallen for three consecutive quarters, and new CEO Niccol has described the competitive environment as "extreme." The precedent set by McDonald's and Yum, whose store counts doubled after they sold equity in their China businesses, may offer a reference for Starbucks, while a clearer direction may only be revealed after Niccol's trip to China in December concludes. [more…]

On January 30, multiple %Arabica stores in the Philippines suddenly closed their doors, and its official Instagram account also appeared to be deactivated, sparking speculation among local consumers and media about whether the brand would withdraw from the Philippine market. The next day, %Arabica issued a statement on Facebook, saying it had terminated its partnership with former Philippine partner Allue Hortaleza, that existing stores were temporarily closed, and that it had found a new agency, promising to resume operations within the year. Regarding the account deactivation, the official explanation was that it had been hacked, and updates have now resumed. The former partner also issued a statement on February 1, saying it would continue to provide high-quality coffee. Behind the incident, some netizens speculated that the post-pandemic business recovery prompted the former partner to strike out on its own. How exactly will this sudden breakup turmoil affect %Arabica's future in the Philippines? [more…]

Luckin Coffee plans to enter Malaysia, negotiating cooperation with local listed companies and formulating a five-year expansion blueprint. Currently, Luckin has over 20,000 stores in China, with only 38 directly operated stores overseas, all in Singapore. Malaysian netizens have reacted enthusiastically to the brand's entry, looking forward to discounted pricing but also concerned about intensifying market competition. Rumors point to the partner being Berjaya Group, the operator of Starbucks, but other sources say the contact is with a different party, and the final choice awaits official announcement. This overseas expansion comes as the domestic tea beverage market becomes saturated and price wars intensify; Luckin went from profit to loss in the first quarter, making Southeast Asia key to breaking the deadlock. [more…]

Laoshan White Flower Snake Grass Water has long been known as the "biological weapon" of the beverage world. When this drink, rated by countless netizens as the worst-tasting beverage, meets coffee, what kind of sparks will fly? Recently, Tims Coffee partnered with Qingdao Laoshan Mineral Water Company to launch Laoshan White Flower Snake Grass Water Cold Brew Coffee, sold only in Qingdao. As soon as the news came out, Qingdao locals expressed their resistance, while netizens elsewhere felt lucky they couldn't buy it. This article will take you through the story behind this hardcore special blend, and the curious early connection between White Flower Snake Grass Water and coffee. [more…]

During the pandemic, Starbucks employees in the United States and South Korea, facing issues such as understaffing, a mismatch between wages and workload, and a lack of safety guarantees, increasingly chose to form or join unions in an attempt to improve their situation through collective bargaining. From the birth of the first union in Buffalo, New York, to responses from employees in Chicago and South Korea, the discontent among Starbucks partners continued to simmer. Although the company remained indifferent and was even accused of failing to provide adequate pandemic support, employees continued to seek channels to make their voices heard. This article will sort out the ins and outs of the Starbucks employee union movement, as well as the wage, treatment, and working environment issues reflected behind it. [more…]

New developments have emerged regarding the sale of a stake in Starbucks' China business. According to Bloomberg, Starbucks has completed an initial screening of potential investors, with about several dozen institutions advancing to the second round of candidates. These include not only well-known private equity giants such as Boyu Capital, The Carlyle Group, KKR, and Hillhouse Capital, but also unexpectedly two Chinese tech companies, JD.com and Tencent. Starbucks CEO Niccol previously revealed on an earnings call that more than 20 prospective partners have expressed interest, and emphasized that the company still hopes to retain a substantial equity stake in its China business in the future. The core consideration in seeking partners is not capital, but how to position the Starbucks brand more favorably in the future. [more…]

Kenya's annual coffee production is approximately 51,000 metric tons, and the government is pursuing a series of strategic initiatives to raise this figure by 49,000 metric tons in order to better meet international market demand and strengthen the country's economic influence. To this end, the Kenyan government recently decided to allocate 6 billion shillings (approximately US$37.62 million) to support the Coffee Cherry Advance Revolving Fund and the production segment, with funding starting in Makueni County and gradually extending to 37 coffee-growing regions including Machakos, Kajiado, Taita Taveta, Kirinyaga, and Murang'a. Meanwhile, the Rainforest Alliance is also taking action in Kenya, partnering with the Gusii Coffee Farmers Cooperative Union to launch a regenerative agriculture landscape coffee project, helping local coffee obtain certification that meets global standards in order to address the export threshold brought about by the EU Deforestation Regulation (EUDR). Whether this series of measures can take Kenyan coffee a step further on the international stage is worth continued attention. [more…]

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…]

Major changes have occurred in %Arabica's partnership in the Philippine market. The brand announced via Facebook that it has terminated its partnership with its former Philippine partner Allue Hortaleza and has found a new agency company, with new stores expected to open within the year. Allue Hortaleza subsequently confirmed the news on social media and launched the local Philippine coffee brand Angkan Coffee on February 10. Since the original %Arabica store locations belong to it, the new brand will open directly at the original sites. Angkan Coffee draws somewhat on %Arabica in its business philosophy and brand aesthetics, while emphasizing the sourcing of local Philippine coffee beans and the integration of local aesthetics and hospitality. Allue Hortaleza insists that the two are not the same and believes the new brand will influence %Arabica's future restart in the Philippines. This article sorts out the course of events and the brand details. [more…]

The last stop of Heytea's bottled beverage "Inspiration Bus" has arrived in Shanghai, partnering with 13 independent coffee shops across the Jing'an, Changning, Xuhui, and Huangpu districts to launch 22 limited-edition "Inspiration Coffee" drinks. The bus previously stopped in Guangzhou and Chengdu, where it teamed up with 20 and 23 coffee shops respectively to roll out dozens of specialty drinks. Heytea's ties to coffee can be traced back to 2014, and it has continued to launch new products since then, officially entering the coffee arena in 2021 by investing in SEESAW COFFEE. However, these specialty drinks mixed with fruit juice and sparkling water, while friendly to those new to coffee, raise a question: are people who drink specialty coffee really savoring the flavor of coffee? Perhaps while enjoying mixed drinks, we should also bravely take a step forward to experience the unique charm of pure coffee. [more…]

Recently, the Ethiopian government, together with the United Nations Development Programme (UNDP), launched a long-term coffee land-use plan with a budget of up to US$20.8 million, aimed at curbing deforestation, promoting the sustainable development of the coffee industry, and helping local coffee comply with the EU Deforestation Regulation (EUDR). The project, named FOLUR, is part of a US$345 million global initiative funded by the Global Environment Facility (GEF) and is planned to run from 2024 to 2031. The project covers 22 districts across four major regions, including Oromia and Sidama, and aims to restore 10,500 hectares of non-productive coffee forests and 60,000 hectares of key forest land, while improving the livelihoods of about 440,000 people. This move is not only related to the lifeline of Ethiopia's coffee exports—which account for 30-35% of its export earnings—but also provides key support for responding to the EUDR regulations that the EU is about to bring into effect. [more…]

Meitu, Inc. recently teamed up with Suzhou-based coffee brand Algebraist to open Fujian's first co-branded coffee shop inside the Meitu Building in Xiamen. This store is not only a key step for Algebraist in expanding beyond Jiangsu, Zhejiang, and Shanghai, but also an aesthetic coffee space that Meitu has created for its new headquarters. The interior design balances comfort and visual experience, while also serving as a window to showcase Meitu's brand image and the building's character. This collaboration is not Meitu's first foray into the coffee sector — back in 2022 during the Mid-Autumn Festival, the two parties launched a co-branded coffee gift box that garnered considerable attention. Thanks to their prior rapport, this co-branded store has achieved a deep integration in aesthetic expression. For coffee enthusiasts, this adds yet another distinctive spot worth visiting; however, since it is located inside an office building and closed on weekends, those planning to check it out should keep the timing in mind. [more…]

A key moment has arrived in the sale of Starbucks' China business. According to the Financial Times, Carlyle Investment Group and Boyu Capital have become the preferred bidders to acquire a majority stake in Starbucks' China operations, with the deal valued at possibly close to US$4 billion. If retained equity and franchising revenue are included, the total value could exceed US$10 billion. Starbucks' final retained share has also been adjusted from the previously rumored 30% to as much as 49%, meaning that even with the introduction of outside capital, Starbucks will most likely remain the largest shareholder in its China business. Currently, five bidders have submitted binding offers, and a final decision is expected by the end of the month. This equity change, which has lasted nearly a year, will profoundly affect the landscape of China's coffee market. [more…]

Professional coffee knowledge exchange For more coffee bean information, please follow Coffee Workshop (WeChat official account cafe_style) For more specialty coffee beans, please add the private WeChat of Front Street Coffee (FrontStreet Coffee), WeChat ID: qjcoffeex When cold drinks account for more than 70% of Starbucks sales, this brand built on espresso is undergoing an identity crisis. Howard announced at an investor briefing the launch of the Siren System automated equipment, compressing the making of a Mocha Frappuccino to 36 seconds and 13 steps—the other side of improved efficiency is the reduction of opportunities for baristas to interact with customers, as well as partners' concerns about the increasingly diluted coffee culture. From the rise of Frappuccino to the innovation of cold brew, from the emergence of delivery scenarios to the taste preferences of millennials, Starbucks is standing at the crossroads of efficiency and experience. [more…]

The EU introduced the EU Deforestation Regulation (EUDR) in June this year, strictly prohibiting the sale of commodities linked to deforestation in the EU market, with coffee explicitly included. The regulation requires operators to conduct due diligence on the origin of goods to prove they are not associated with deforestation or forest degradation, or they will face fines or even export bans. The regulation will take effect from the end of 2024 to early 2025, and countries and coffee companies are actively responding. Global coffee giant JDE Peet's recently announced that it has signed memorandums of cooperation on deforestation-free coffee with coffee-producing countries such as Vietnam, Ethiopia, Papua New Guinea, Tanzania, and Uganda, and is using Enveritas' satellite imagery, AI, and on-the-ground verification technology to ensure that coffee does not come from deforested land while protecting the interests of smallholder farmers. This move is highly consistent with the new EU rules and also provides a reference for a sustainable supply chain for brands of interest to coffee enthusiasts, such as Front Street Coffee. [more…]

Luckin Coffee once again demonstrated its "champion harvester" prowess, officially announcing on February 20th the signing of Anthony Douglas, the 2022 WBC World Barista Champion, bringing him into the "Luckin WBC Champion Team." Starting in March, Anthony will lead a bean-sourcing team deep into Ethiopia and Panama, two renowned origins, to participate in green bean procurement. This marks Luckin's fifth collaboration with a WBC champion, following Hidenori Izaki, Andrej Latuada, Pan Zhimin, and Agnieszka Rojewska. Anthony won the championship with his innovative technique of concentrating milk using freeze-drying technology, and previously served as a global ambassador for La Marzocco. Having come up through Melbourne's Axil Coffee Roasters, his addition will inject new vitality into Luckin's specialty coffee line. Whether the future "Little Black Cup" series will feature Panama Geisha is something worth looking forward to. For more specialty coffee news, welcome to follow Front Street Coffee (FrontStreet Coffee). [more…]

On September 13, Starbucks interim CEO Howard officially unveiled the company's reinvention plan at an investor briefing, announcing a series of initiatives to enhance the customer and barista experience through improved employee benefits, reimagining the third place, innovating beverage production processes, simplifying operations, and expanding digital services, with the goal of achieving a business turnaround by 2024. Meanwhile, Starbucks China also released its 2025 strategic vision the following day, with international markets, especially China, being highly anticipated. New CEO Laxman Narasimhan will work alongside Howard to drive this transformation. [more…]

The Cup of Excellence (COE) organization recently launched a multi-day educational program aimed at giving international coffee professionals an in-depth, immersive experience of coffee-producing countries' local coffee and culture. For its first collaboration with the Salvadoran Coffee Institute, the inaugural "Origin Immersion" program is set to take place in El Salvador in February 2024. The five-day course covers COE cupping scoring, industry history and variety presentations, visits to farms, processing plants, and roasters, defect identification and quality control, discussions on sustainable practices and biodiversity, as well as hands-on roasting and espresso tasting sessions. COE founder Susie Spindler and Salvadoran Coffee Institute director Carolina Padilla both have high hopes for the program, looking to bring buyers and producers closer together and raise the international profile of Salvadoran coffee. [more…]

In the specialty coffee world, the ripeness of coffee cherries directly determines the quality expressed in the final cup. Front Street Coffee's Front Street Yirgacheffe Natural Red Cherry is a select lot from Ethiopia's "Red Cherry Project." The project was initiated by Trabocca, the largest green coffee trader in the Netherlands. It requires partner farms to harvest only 100% ripe red cherries, which are then hand-sorted by local women with sharp eyes and a willingness to work hard. Only lots scoring 88 or above in cupping are eligible for selection. This article will guide you through the origins and operation of the Red Cherry Project and share Front Street Coffee's brewing parameters and flavor performance using two devices—the strawberry dripper and the origami dripper—to help coffee lovers recreate this bean's floral aroma and fruity sweetness at home. [more…]

On September 9th, Brian Niccol officially took over as CEO of Starbucks. Facing two consecutive quarters of performance pressure and fierce competition from local brands like Luckin in the Chinese market, he released his first open letter, "Back to Basics," the day after taking office. In the letter, Niccol admitted that Starbucks had strayed from its core, promised to reshape its positioning as a community coffeehouse, and focus on four key areas: baristas, production efficiency, store experience, and more. He also specifically mentioned that the Chinese market is vibrant and requires tapping into its growth potential. Can this "firefighter," who once led Chipotle out of crisis, help Starbucks rediscover its original purpose? Front Street Coffee is following this story with you. [more…]