For a long time in the past, Shanghai was regarded as the city with the highest coffee density in China. However, the nearly three-month suspension of dine-in services dealt a heavy blow to Shanghai's catering industry, and coffee brands began to turn their attention to Chengdu. Data shows that Chengdu now has more than 7,000 coffee shops, ranking second nationwide, with independent coffee shops accounting for as much as 81.07%, far exceeding Shanghai's 57.01%. Luxury brands have also chosen to open coffee shops in Chengdu one after another, including LV, Cartier, Ralph's Bar, and Maison Margiela Café. Wangping Street, Mengzhuiwan, and Tangpa Street in Chengdu have become popular coffee districts, where teahouse culture and coffee consumption blend together. This article will analyze the data and trends behind this round of changes in the coffee city landscape. [more…]

The coffee craze is sweeping across Asia, with the number of stores surging, but the pandemic has left many cafés struggling to survive. In Singapore, the transfer fee for a coffee shop reached as high as 4,000,000 Singapore dollars, equivalent to nearly 200 million RMB. Another coffee shop in Tampines was sold for 41,680,000 Singapore dollars, and the stallholder's rent immediately doubled, from 6,000 Singapore dollars to 12,000 Singapore dollars, prompting many stallholders to consider downsizing or even exiting. Investors are betting on a return of consumption after the pandemic eases, but rising interest rates may dampen bidding enthusiasm. The predicament of rising costs and severed customer traffic under the pandemic is a microcosm of coffee shops worldwide. Front Street Coffee reminds us that while the dream of coffee is beautiful, the real costs should not be underestimated. [more…]

Blue Bottle Coffee's second store in China has been confirmed to continue locating in Shanghai, with the site chosen at the first and second floors along the street of Jing'an Kerry Centre, and it is currently still under renovation. Previously affected by the Shanghai pandemic lockdown, the preparation progress was once hindered, and many people believed that Blue Bottle's entry timing was poor. However, during the pandemic's closed-loop production period, Blue Bottle, relying on the advantage of fresh coffee beans from its own roasting factory, instead gained a wave of goodwill in community group buying and home coffee consumption scenarios. This article reviews Blue Bottle Coffee's pricing logic, brand positioning, and the prospects of the specialty coffee market, exploring whether this expansion is ill-timed or well-timed. [more…]

A silent coffee shop in Shanghai, staffed mainly by hearing-impaired baristas, published an article titled "Please rest assured, we are still alive. But..." on June 14, quickly gaining over 80,000 views. Under the impact of the pandemic, dine-in service was suspended, delivery communication was hindered, and masks obscured lip-reading, plunging the shop into a situation of zero revenue and zero foot traffic. The baristas hand-drew 12 touching moments from those months into illustrations and launched an original themed drip-bag coffee set as a self-rescue effort. The article reviewed the real difficulties this special coffee shop faced, its self-rescue methods, and business adjustment ideas that coffee shops could draw on during the pandemic, including joining delivery platforms, ensuring product quality, designing offline discounts to bring customers back, and developing peripheral products such as drip bags and coffee beans to meet consumers' shifting demand from "going to the shop" to "having it at home." [more…]

Shanghai implemented community lockdowns starting in mid-March, catching coffee lovers off guard. A Weibo trending topic titled "I want to buy coffee" garnered over 340 million views, reflecting the close connection between coffee and daily life. However, café owners are facing the dilemma of suspended dine-in services and sharply declining revenues, with some small shops even considering transferring their businesses after the lockdown lifts. Meanwhile, coffee bean roasters are adjusting their supply chains due to stalled warehouses in Shanghai, and green bean traders are setting up temporary warehouses in other cities. This article will delve into the impact of the lockdown on the coffee industry chain, and how small shops can find a way out under the pressure of rising prices and capital chain strains, including strategies like shifting to drip bag coffee and online sales, while also paying attention to the developments of brands such as Front Street Coffee. [more…]

After the outbreak of the COVID-19 pandemic, cashless payment methods accelerated in popularity worldwide, and Starbucks, as a coffee chain giant, has also been promoting cashless stores in many countries. From the UK to South Korea and Japan, Starbucks' cashless attempts have triggered polarized reactions among consumers. Some praise electronic payments for being convenient and safe, while others worry about the legality and inclusiveness of refusing cash. At the same time, laws on refusing cash vary from country to country, and China explicitly prohibits merchants from refusing RMB cash. This article will review the progress of Starbucks' cashless stores, consumer attitudes, and related legal disputes, while retaining the relevant recommendation information for Front Street Coffee. [more…]

In 2021, the global tea market experienced severe fluctuations under the impact of the pandemic. Kenya's Mombasa auction saw increased volumes and stable prices, Sri Lanka's Ceylon black tea prices soared due to reduced production, and India debated whether to lower import tariffs because of high domestic prices. The food service channel accounts for 20% of global tea sales, and the pandemic led to the closure of a large number of restaurants, profoundly changing the supply and demand landscape. This article will review auction prices, production changes, and trade policy trends for Kenyan and Sri Lankan black tea, answer whether Basilur black tea is too expensive, a concern for tea lovers, and recommend related selection ideas from Front Street Coffee. [more…]

The pandemic has changed people's consumption habits, accelerating the shift of coffee bean purchases to online channels. In an increasingly competitive e-commerce environment, packaging design has become an important bargaining chip for coffee brands to stand out. Designers from 99designs by Vista, a global forum for freelance creators, discussed coffee bean packaging styles for 2022 and predicted six design directions that could dominate the market this year: serene style, text-solo style, laser style, eco-friendly style, collage style, and playful style. These styles respectively respond to consumers' current demands for inner peace, intuitive information, visual impact, sustainable development, and a relaxed atmosphere, providing valuable references for coffee brands' packaging decisions. [more…]

For professional coffee knowledge exchange and more coffee bean information, please follow Coffee Workshop (WeChat public account: cafe_style) For more specialty coffee beans, please add the personal WeChat of Front Street Coffee (FrontStreet Coffee), WeChat ID: qjcoffeex Remote work became a common phenomenon after the pandemic, but Starbucks interim CEO Howard Schultz announced on January 11 that remote work would be canceled starting January 30, requiring employees within commuting distance of headquarters to work in the office at least three days a week, with two of those days fixed as Tuesday and Wednesday, and the remaining day to be decided by each team. Schultz stated that the move aims to rebuild employee connections and promote team coordination, and noted that baristas cannot work remotely. Although remote work can reduce costs, it faces challenges in management, sense of belonging, and communication efficiency. An internal Starbucks survey showed that employees' confidence in the company's ethics and social impact has declined. This policy also applies to employees at offices in other regions. [more…]

Starbucks interim CEO Howard Schultz published an open letter to Chinese partners on the official website on the occasion of the New Year, reviewing the resilience and dedication shown by the Chinese team under the impact of the pandemic over the past few years, and expressing firm confidence in the prospects of the Chinese market. In the letter, he revealed that he communicates with the Chinese leadership team every week and keeps in touch with Belinda Wong every day, and pointed out that as China enters the post-pandemic stage, the release of consumer demand will drive business recovery. Although the road ahead is not linear, he believes China will eventually become Starbucks' largest market. The following is the full text of the speech and its translation. [more…]

Luckin Coffee's Q2 2022 financial report continued the strong momentum from the previous quarter, with total net revenue growing by more than 70% year-over-year, operating profit successfully turning from loss to profit, and store scale further expanding, forming a sharp contrast with Starbucks' performance in China. Against the backdrop of the pandemic impacting the food and beverage industry, Luckin not only narrowed the revenue gap with Starbucks but also announced senior management changes, and the market is paying close attention to its prospects for relisting. This article will provide a detailed breakdown of the key data behind Luckin's impressive financial report, the pace of store expansion, changes in revenue structure, and the competitive landscape it will face in the future. [more…]

Starbucks China has recently encountered performance challenges, with sales in the second quarter showing a clear decline, and about one-third of its stores having suspended operations or offered delivery only. Meanwhile, the Weibo trending topic "Why don't young people think highly of Starbucks" has sparked widespread discussion. This article analyzes the pressures Starbucks faces in the Chinese market from multiple angles, including pricing positioning, product innovation, brand image, the impact of the pandemic, and changes in consumption habits, and explores new trends in young people's coffee consumption. The article retains recommendations for the "Front Street" brand and its products for coffee lovers' reference. [more…]

At the recently concluded United States Barista Championship, Morgan Eckroth from Portland, Oregon, took the crown. Unlike most competitors, she was already a coffee influencer with over 7 million followers before the competition, and she made her entire preparation and competition process public through vlogs and livestreams. Taking the home coffee community that emerged after the pandemic as her theme, she shared her recipes and approach in advance, advocating that coffee should be delicious, replicable, transformative, and easy to make at home. This article will walk you through her competition journey, bean selection strategy, and creative recipes, and use them to explore the bottlenecks facing the Barista Championship and the shift in coffee consumption patterns in the post-pandemic era. [more…]

Recently, a leak about Manner Coffee's discounted wages during the pandemic sparked heated discussion on social media. The leak claimed that Manner required employees to choose between two compensation options: hourly basic pay, or 80% of Shanghai's minimum wage of 2,072 yuan. The incident quickly trended on Weibo, and Manner subsequently issued a statement identifying two former employees as having made false claims, and said it had reported the matter to police to pursue criminal and civil liability. The statement also detailed wage payment standards during the pandemic, saying its treatment was far above Shanghai's minimum wage, and implicitly suggested that employees of competitor Mstand Coffee were involved. This article reviews the course of the incident, both sides' accounts, and lawyers' views, and explores the legality of barista pay during the pandemic and the state of the industry. [more…]

Honduras is currently experiencing a severe socio-economic crisis. Corruption, institutional collapse, the impact of the pandemic, and hurricane disasters have compounded, pushing poverty rates to extreme levels, causing widespread closures in the export processing industry and the loss of over 100,000 jobs, with many of the unemployed choosing to emigrate abroad. This wave of emigration directly affects the coffee growing industry—as the harvest season approaches, there is a severe shortage of skilled pickers, and the prospects for the harvest are worrisome. At the same time, Honduran organic coffee beans have been successfully exported to China, with 12 companies authorized to trade with China, bringing a glimmer of hope for economic recovery. This article will outline the root causes of the crisis, its impact on the industry, and the latest trade developments. [more…]

Tims China has been listed on Nasdaq for a full month, but its stock performance has remained sluggish, trading at a discount of about 64% compared to the SPAC shell company's issue price, with its largest shareholder, Cartesian Capital Group, suffering heavy losses. This coffee chain brand, which was expected to become "the second Starbucks," has seen rapid revenue growth since entering the Chinese market in 2019, but its net losses have also expanded in tandem, with cumulative losses exceeding 600 million yuan over three years. Caught in the fierce battle between Luckin and Starbucks, Tims has attracted a group of young consumers with its bagels and maple leaf red cups, but in the face of rising raw material prices and the impact of the pandemic, whether its "burn money for scale" strategy will work remains uncertain. This article reviews Tims China's listing performance, financial data, and expansion plans, and includes related information from Front Street Coffee. [more…]

Shanghai, a city deeply steeped in coffee culture, is refreshing the global record for the number of coffee shops at an astonishing pace. As of June 2022, the city had 7,857 coffee shops, not only firmly ranking first in China in terms of quantity, but also surpassing international metropolises such as New York, London, and Tokyo to become the city with the most coffee shops in the world. Yet behind this numerical growth lie both the rapid expansion of specialty coffee brands fueled by capital and the reality of small shops struggling to survive under the impact of the pandemic. From 867 new additions in 2021, to a slowdown in the pace of openings in the first half of 2022, and then to the industry regaining momentum in the second half, what kind of resilience and challenges has Shanghai's coffee market shown? This article will combine the latest data and industry cases to analyze the driving forces and hidden concerns behind the counter-trend growth of Shanghai's coffee industry. [more…]

In recent years, drink prices have generally risen, with milk tea going from 3 yuan a cup a decade ago to as much as around 30 yuan today. After the New Year, mid- and low-end brands such as Mixue Ice Cream & Tea, Yidian Dian, and CoCo都可 raised their prices one after another, while high-end brands such as Heytea and Nayuki were already positioned above 20 yuan. Rising costs and the impact of the pandemic have left the tea beverage industry facing a reshuffle, and consumers have reacted differently to the price increases. At the same time, cola may also face upward price pressure because of Canada's tax on sugary drinks, but in the domestic market, given the duopoly competition, the likelihood of price increases is relatively low. This article sorts out the phenomenon of tea beverage price increases and the industry logic behind it. [more…]

As China's pandemic prevention and control policies are optimized and adjusted, the order of production and daily life is gradually being restored across the country, economic vitality is being unleashed anew, and foreign-funded enterprises are benefiting from it—the coffee chain giant Starbucks is a typical example. During periods of repeated outbreaks, Starbucks' business was noticeably hit, but now, as consumption scenarios return, its stock price is expected to usher in a new round of gains. Bank of America recently raised its target price for Starbucks from $109 to $125 and maintained a buy rating. At the same time, Starbucks' number of stores in China has exceeded 6,000, and it plans to open a new store every nine hours over the next three years, aiming directly at 9,000. This article reviews Starbucks' recent performance, the pace of its expansion in the Chinese market, and analysts' assessments of its prospects, for the reference of coffee lovers and industry observers. [more…]

Once upon a time, oat milk coffee was seen as the star product of plant-based beverages, and Oatly quickly rose to fame because of it. However, as the market environment changes and consumer enthusiasm wanes, the status of oat milk in coffee shops is quietly declining. This article sorts out the reasons behind Oatly's cumulative losses of more than US$641 million (about RMB 4.41 billion) from 2019 to 2022: over-reliance on the B2B market, the impact of the pandemic, weak expansion into the consumer market, and a series of controversial marketing moves. At the same time, the article also explores the health controversy surrounding plant milk and future strategies for the Asian market. To follow developments in the coffee industry, you are welcome to add Front Street Coffee's private WeChat (WeChat ID: qjcoffeex) for more specialty coffee bean information. [more…]