KFC is no longer just selling fried chicken. This fast-food giant has quietly launched its first standalone tea beverage brand, "Grandpa's Carefree Tea," in Suzhou, officially entering the fiercely competitive new-style tea beverage market. The brand focuses on a "rice milk tea" series, using the gold award-winning rice variety Nangeng 9108 as its raw material, paired with Jiangnan specialty tea bases such as jasmine tea and Biluochun, and incorporating local toppings like orange cake and gorgon fruit, giving it a strong regional identity. The store decor features Suhe pink and Canglang green as the main tones, creating a spatial atmosphere reminiscent of Suzhou gardens. Against the backdrop of brands like Heytea and Nayuki cutting prices and engaging in intense competition, whether KFC's move can break through is worth watching. [more…]

Starbucks' Star Delivery Time-Space series recently launched 4 new products, two of which are milk teas without coffee that have sparked heated discussion. Some speculate this is a signal that Starbucks is entering the milk tea scene after being provoked by Luckin. The new products use a combination of syrup, freshly brewed tea, and milk, with the tea bag placed directly into the drink, allowing customers to add water themselves to extend the flavor. This approach continues the design concept of last year's Time-Space series and has gained recognition from some consumers, but others complain that the tea bag is troublesome to handle and that the flavor is not fully released in cold drinks. The 36-yuan price tag is still considered high by milk tea enthusiasts, making value for money the focus of controversy. Starbucks previously tested pearl milk tea in North America with lackluster results; this time the domestic new products are highly localized, but whether they can break through in the fiercely competitive tea beverage market remains unknown. [more…]

While Heytea, Nayuki, Starbucks, and Luckin are battling it out on the front lines over co-branded collaborations, new product launches, and price wars, few have noticed that a group of suppliers behind them is quietly rising. From Jiahe Foods to Sanyuan Biology, from Tianye Shares to Hengxin Life and Dexin Foods, an increasing number of raw material and packaging companies behind new-style beverages are beginning to sprint toward the capital market. Some of these companies provide non-dairy creamers and sugar substitutes, some supply fruit juice concentrates and flavored syrups, and others specialize in producing paper cups and plastic cups. While terminal brands fight in a red ocean, upstream suppliers have seized the momentum to grow bigger, raked in huge profits, and collectively embarked on the path to listing. [more…]

Recently, Sina Finance exclusively reported that Heytea had initiated internal layoffs involving about 30% of its employees, and the news quickly sparked widespread discussion. Heytea responded promptly, saying the report was untrue and that there was only normal personnel optimization based on year-end performance reviews. This incident has once again drawn public attention back to the new-style tea beverage sector: Nayuki is expecting losses, Heytea's growth is slowing, store expansion is decelerating, and homogenized competition in the industry is becoming increasingly fierce. At the same time, Heytea's countercyclical price cuts and moves to tap lower-tier markets have also sparked discussion. This article will sort out the sequence of events and present Heytea's operational changes and market challenges since 2021. [more…]

The new-style tea beverage market has been stirring recently. High-end brands Heytea and Nayuki have successively announced price cuts, with the lowest dropping to 9 yuan. Nayuki launched a "Relax" series priced at 9-19 yuan, promising to launch at least one "single-digit" product every month, while Heytea announced it will not raise prices this year. Consumer reactions have been mixed, with some cheering and others questioning reduced cup sizes and lower quality. This article reviews the price-cut moves of the two major brands, netizen feedback, and industry data, analyzes the consumption trends and market logic behind the involution in new-style tea beverages, and includes related news about Front Street Coffee. [more…]

Over the past year, the tea beverage market has undergone a dramatic reshuffle. According to Zhanmen Canyan data, the total number of stores in the milk tea beverage industry reached 412,600, with 142,300 new openings, but the net growth was -17,700, meaning that more than 160,000 stores exited the market in the fierce competition. Although leading brands such as Mixue Ice Cream & Tea, Guming, Shanghai Auntie, and ChaPanda still saw growth, their pace of store expansion has clearly slowed. Nayuki's stock price plummeted 93%, wiping out nearly HK$27 billion in market value. Product homogenization is severe, consumers are experiencing aesthetic fatigue with similar drinks, and the industry is accelerating into a harsh winter during the off-season of autumn and winter. [more…]

SMILEY, an internationally renowned IP with a 50-year history, has officially entered the tea beverage sector. Its brand SMILEY tea will open its first global store at Joy City in Chaoyang, Beijing, expected to open on October 1. The brand focuses on whole-leaf steam tea, brewing tea in a way similar to coffee extraction. Its product line covers lattes, pour-over tea, milk tea, alcoholic specialty drinks, and ice cream, positioned at a mid-range price point and targeting consumers born in the 1990s to 1995. Amid fierce competition in the tea beverage industry and where IP collaborations have become the norm, whether SMILEY tea can establish a firm foothold by leveraging its built-in traffic IP advantage still needs market testing. This article also brings coffee knowledge exchange and Front Street Coffee's specialty bean recommendations. [more…]

Nayuki quickly rose to fame with its combination of tea drinks and soft European bread, becoming a leading brand in the new-style tea beverage sector. However, its largest store nationwide, Nayuki Dream Factory in Shenzhen Coastal City, recently quietly closed, and the site will be upgraded to "Nayuki Life," a lifestyle concept store. This thousand-square-meter flagship store, which once generated nearly a million in revenue within three days of opening, carried Nayuki's ambition to experiment from tea drinks to coffee, craft beer, Western cuisine, retail, and other multi-format ventures. From Nayuki Tavern to Nayuki PRO, and further to Nayuki Bookstore and ready-to-drink product line layout, Nayuki has continuously tried to break the boundaries of tea drinks. This renovation of its largest store reflects the collective anxiety of brands seeking differentiated breakthroughs amid intensifying homogenized competition in the new-style tea beverage industry. This article reviews the rise and fall of Nayuki Dream Factory and explores whether multi-format development can truly be the way for tea beverage brands to break through. [more…]

On September 18, Heytea sent an internal letter titled "Creating Differentiated Brands and Products for Users" to its business partners, directly addressing the increasingly fierce homogenized competition and low-price involution in the tea beverage industry. The letter proposed "creating differentiated products and brand experiences for users to the utmost" as the direction for breaking through, explicitly stating it would not follow popular categories, not engage in pure low-price competition, and would control the pace of store openings and focus on operational quality. However, netizens had mixed reactions: some supported the differentiation strategy, while others complained about weak product innovation and declining quality. Can Heytea win back consumers with this strategy? This article will sort out the key points of the internal letter and voices from all sides. [more…]

Recently, news that ByteDance applied to register the trademarks "ByteTea" and "ByteTea" has sparked widespread speculation. As the parent company of Douyin, does this move by ByteDance mean it intends to enter the milk tea industry? This article reviews ByteDance's trademark activity, the background of slowing advertising revenue growth, and Douyin's massive user base and marketing capabilities, and analyzes the possibility of its entry into the tea beverage market. At the same time, the article also points out that competition in the current tea beverage industry is fierce, and product quality is the foundation for standing firm. [more…]

Nayuki received a fine for a false advertisement regarding mulberry ingredients, drawing attention to its brand marketing methods. This is not the first time Nayuki has been embroiled in controversy; since its listing, multiple stores have been exposed or penalized for food safety issues. Meanwhile, Nayuki has been trying to connect with young consumers through cultural, artistic elements, and social marketing. From high-priced tea drinks to loss-making financial reports, to closing its largest store and establishing a new company, Nayuki is seeking a new path to survival. This article reviews the sequence of events, historical penalty records, and the multiple challenges the brand faces in marketing and operations, and explores the core of competition in the new tea beverage industry. [more…]

While brands like Heytea, Nayuki, Starbucks, and Luckin are fiercely battling it out in the end market—rolling out collaborations, launching new products, and cutting prices in turn—it is actually the ingredient and packaging suppliers behind them that are quietly making a fortune. From Jiahe Foods to Sanyuan Biology, from Tianye Co. to Hengxin Life, and on to Dexin Foods, a group of supply chain enterprises for the new-style beverage industry are collectively sprinting toward the capital market. They serve well-known brands such as Uni-President, Xiangpiaopiao, CoCo都可, Mixue Bingcheng, Genki Forest, Nayuki, and Luckin, and have achieved soaring performance through products such as sugar substitutes, juices, paper cups, and syrups. This article will sort through the listing landscape of these low-key suppliers and reveal the real path to riches for upstream enterprises under the wave of new consumption. [more…]

Competition in the new tea beverage sector is growing ever more intense. While defending their existing advantages, major brands are exploring diversified business paths, among which the "coffee + bakery" combination is particularly eye-catching. Recently, Chagee launched its Zhencui Tea series in its 4.0 stores and ventured into the bakery sector for the first time, rolling out three bagel products in one go, marking this new tea beverage brand's official entry into the bagel race. Meanwhile, chain coffee brands such as Starbucks, Tims Coffee, Peet's Coffee, and Seesaw had long since established bagel product lines. With their healthy attributes of low sugar, low oil, and low fat, their consumption scenarios covering all dayparts, and their fit with the customer profile of coffee shops, bagels are gradually becoming a standard bakery item in specialty coffee shops. This article will provide an in-depth analysis of the specific products and pricing strategy behind Chagee's cross-category attempt, as well as the deeper logic behind the rise of bagels. [more…]

Recently, Changsha tea beverage brand Chayan Yuese has attracted widespread attention due to the establishment of a branch company in Shanghai and the release of recruitment information in Shenzhen. There has been much speculation from the outside about whether it will enter the Shanghai and Shenzhen markets, but the brand responded that the new Shanghai company is only a creative studio and there are currently no plans to open stores. However, the focus of netizens' discussion has fallen on Chayan Yuese's signature queuing and verification mechanism—many people believe that this model is difficult to adapt to the fast-paced consumption habits of Shanghai and Shenzhen, and that if it insists on its original rules, it may be difficult to gain a foothold. At the same time, Heytea, Chagee, and local brand Tea Li Yishi have already occupied the local market. If Chayan Yuese enters at this time, the competitive pressure cannot be underestimated. This article will sort out the ins and outs of the incident and the views of all parties. (Compiled by Front Street Coffee) [more…]

New tea beverage brand Guming has recently launched a second-hand equipment trading platform within the DingTalk system, open to all franchisees, providing matchmaking services only and not directly participating in buying or selling. The platform offers valuation and inspection services for sellers, and price comparison and anti-fraud protections for buyers. According to Guming's prospectus, equipment sales account for approximately 4.5% of revenue, while franchisees' initial equipment investment is about 100,000 yuan. As competition in the new tea beverage industry intensifies, a wave of store closures once led to a backlog of unsold second-hand equipment, with recyclers even disposing of it as scrap metal. Whether Guming's move can provide franchisees with a safer and more convenient transfer channel is worth watching. Front Street Coffee has long monitored trends in the coffee and tea beverage industries and will continue to track the platform's actual performance. [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…]

The coffee consumption boom is spreading from commercial districts to university campuses, and college students have become an important group of high-frequency coffee consumers. Luckin Coffee has seized a first-mover advantage with more than a thousand campus stores, while brands such as Starbucks, Tims, Manner, M Stand, and NOWWA have also entered universities one after another, and Mixue Ice Cream & Tea's Lucky Cup is closely pursuing with about 260 campus stores. This article sorts out each brand's layout strategy, store data, and competitive situation on university campuses, and includes Front Street Coffee's specialty bean information, to help you understand the real landscape of the campus coffee track. [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…]

In recent years, coffee and milk tea brands have been rolling out all kinds of merchandise giveaways beyond the drinks themselves—from cup sleeves and paper bags to hair clips, coin purses, and even coffee-scented candles and co-branded perfumes. These seemingly inconspicuous little items are becoming a key factor in attracting consumers. When many customers buy drinks, their focus has shifted from taste to whether they can get limited-edition merch, and some even place repeat orders just to complete a giveaway set. Behind this marketing strategy lies both the consumer psychology of non-monetary promotions and an attempt by the tea beverage industry to break through amid intensifying competition. Starting from this phenomenon, this article will analyze how giveaway promotions influence purchasing decisions, and explore how cases such as Saturnbird's "Return Flight Program" achieve a win-win for brand publicity and environmental image, while also retaining relevant recommendations for Front Street Coffee. [more…]

Recently, many consumers have noticed that once-affordable milk tea brands have been raising their prices one after another. From Yidiandian to Mixue Bingcheng, and then to CoCo都可, the wave of price increases among mid- to low-end tea beverages has drawn widespread attention. At the same time, Coca-Cola, the ever-green player in the beverage world, has also been rumored to be considering a price hike. Behind this round of price adjustments lie not only the cost pressures brought by the pandemic but also deeper changes facing the tea beverage industry. As consumers become more price-sensitive and competition from mid- to high-end brands intensifies, how tea beverage companies find a balance between quality and cost will be key to determining their future development. [more…]