Sunday, September 20 2026

Cotti franchisees trapped in subsidy dilemma: squeezed by high transfer fees and low gross margins

As the weather turns colder, information about Cotti Coffee store transfers has noticeably increased on social platforms, including many high-quality stores with monthly net profits of tens of thousands of yuan. Behind the seemingly attractive transfers are transfer fees as high as hundreds of thousands of yuan and long payback periods. Cotti rapidly expanded to more than 6,000 stores thanks to its low-threshold franchising and generous subsidy policies, but the high subsidies also brought high costs and intense competitive pressure. Franchisees are struggling to survive between the price war and commission rules, with some lamenting that they are "helping Cotti build the market, busy but not prosperous." This article will deeply analyze the real survival picture of franchisees under Cotti's subsidy policy and explore the business logic and hidden concerns behind this franchising boom. [more…]

Cotti franchisees are collectively anxious: payback takes four and a half years, a wave of store transfers is rising, can the new Tea Cat venture save the day?

The competition between Cotti and Luckin has yet to produce a winner, and founder Lu Zhengyao has now announced that Cotti will expand into milk tea, a move that has caused an uproar among franchisees. Recently, a letter from a franchisee to Cotti has been circulating on social media, detailing Cotti's various problems across six dimensions, including supply, R&D, and operations. Meanwhile, some netizens have done the math: with an investment of 400,000 yuan to open a store, even at 500 cups sold per day, it would take four and a half years to break even—yet many stores sell fewer than 100 cups a day. With Tea Cat's launch imminent, some franchisees have already lost confidence, and transfer listings are appearing frequently on social media. Cotti's management has still not responded to the letter, and the patience and confidence of franchisees are being worn down. [more…]

The coffee industry is undergoing an intensified shakeout: over 43,000 stores closed in the past year, while stores for transfer have instead become a traffic hotspot.

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…]

Customer Brings Own Cup to McDonald's for Coffee, Asked to Use Disposable Cup for Transfer; Employee Says Company Policy Prohibits Customer Containers in Preparation Area

Bringing your own cup to buy coffee is inherently an eco-friendly gesture, but one consumer ran into an unexpected situation at McDonald's: the staff first poured the drink into a disposable cup, then transferred it into the customer's cup. The store explained that customer containers cannot enter the preparation area due to hygiene regulations. The incident sparked widespread discussion—some understood McDonald's food safety considerations, while others felt that using an extra plastic cup defeats the original eco-friendly purpose. So how exactly should bring-your-own-cup work at fast-food restaurants? Front Street Coffee takes you through the details. [more…]

How severe are coffee shop losses? Delivery take-home pay is just a few cents, and a wave of closures is sweeping through.

How much can you actually lose by opening a coffee shop? Many shop owners have shared their real earnings on delivery platforms: a cup of coffee originally priced at over twenty yuan, after deducting various discounts and commissions, may leave them with only a few cents, or even result in negative-order losses. Knowing they are losing money, they still force themselves to stay on delivery platforms, simply because if they do not join the promotions, they get no orders all day. At the same time, coffee shop transfer listings have surged on social platforms, from big cities to small towns, from large stores of several hundred square meters to tiny shops of just over ten square meters, all in a hurry to offload. Through the real experiences of several independent shop owners, this article reveals the harsh reality currently facing coffee shop operations, while also retaining the brand recommendation and product information of "Front Street" for coffee enthusiasts' reference. [more…]

A Record of the Year-End Closure Wave Among Independent Coffee Shops: The Entrepreneurial Predicament Beneath Price Wars and Franchise Expansion

As the year draws to a close, chain brands are accelerating their entry, franchise thresholds keep dropping, and the price war is intensifying. Under the weight of these three pressures, a group of independent coffee shops that have been barely hanging on are hastening toward their end. On social platforms, news of countdowns to closure, store transfers, and coffee machines being sold off cheaply floods the feeds. From shop owners to part-time employees to second-hand equipment dealers, everyone is witnessing this surging wave of closures. Through multiple real cases, this article reconstructs the harsh reality of today's coffee entrepreneurship track. [more…]

Coffee Bean Roasting for Beginners: A Complete Guide to Equipment Selection, Differences in Heat Transfer Methods, and Core Terminology

Want to learn how to roast coffee? Start by getting to know the tools and the terminology. Roasting coffee beans looks as simple as stir-frying vegetables, but doing it well requires a solid foundation of knowledge. In this article, Front Street Coffee will walk you through several common coffee roasting devices—direct-fire, semi-direct-fire, and hot-air roasters—covering their respective heat transfer principles, advantages, and drawbacks. At the same time, we'll systematically sort out the professional terms that come up during roasting, including charge point, turning point, yellowing point, first crack and second crack, as well as stage concepts like the drying phase, browning phase (Maillard), and development phase. Mastering this foundational knowledge is an important prerequisite for actually roasting beans, judging the roasting pace, and controlling the direction of flavor—and it can help you avoid detours and roast a good batch of beans faster. [more…]

Guming builds an internal secondhand equipment trading platform, so franchisees no longer have to sell off equipment by the pound.

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…]

Singapore coffee shop resale prices have soared to S$40 million, with doubled stallholder rents triggering a wave of exits

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…]

College student loses 100,000 in two months running a coffee shop—fully automatic toy machine becomes the key factor in startup failure

Many college students embark on the path of entrepreneurship with the dream of opening a coffee shop, but reality is often far crueler than imagination. A young entrepreneur lost 100,000 yuan in just two months of opening her shop and had to close down and sell off her equipment. When netizens saw that she was using what the industry nicknamed a "toy machine"—a fully automatic coffee machine—the comments section erupted. The stark contrast between carefully selected ingredients and mismatched equipment sparked widespread discussion about how independent coffee shops can survive in fierce competition. Meanwhile, the national coffee shop closure rate continues to climb, and the industry shakeout is accelerating. [more…]

Three Major Taboos in Coffee Bean Storage | How to Store Fresh Coffee Beans to Preserve Flavor Longer? How to Extend the Peak Flavor Period of Single-Origin Pour-Over Beans?

As the Spring Festival approaches, it's another special Spring Festival, and many courier services are gradually suspending operations. Smart friends have already stocked up on winter supplies, filling their coffee cabinets to the brim. However, with still about half a month to go before the New Year, how to store coffee beans has become a major challenge for everyone. When storing coffee beans, [more…]

Luckin franchise store pays only 4 yuan for 4 days of trial work, Front Street Coffee focuses on labor rights dispute

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…]

Luckin's Q2 revenue surged 72%, store count surpasses Starbucks, core business back on track

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' $1 billion restructuring, store closures and layoffs: barista union protests and demonstrations at Seattle headquarters

Starbucks recently implemented a $1 billion restructuring plan, closing hundreds of underperforming company-operated stores in North America, which triggered a wave of mass layoffs. In front of the global headquarters in Seattle's SoDo district, baristas and union members gathered to protest, holding up signs to express strong dissatisfaction with the company's decisions. Laid-off employees said they only learned of their job losses through prerecorded phone calls and social media, without being offered any opportunity to transfer. Union data shows that 59 unionized stores across the United States were permanently closed in this round of adjustments, with 369 people in Washington State facing permanent layoffs. Meanwhile, New York City regulators also pointed out that Starbucks is suspected of violating labor laws. This labor conflict is continuing to escalate, and the union stated that if their demands are not addressed, they do not rule out expanding actions or even going on strike. [more…]

Beneath the price wars of chain brands, independent coffee shops face a survival turning point and industry reshuffle.

When major chain coffee brands launched an all-out price war, independent coffee shops were pushed to the brink of survival. Nearly 70,000 new stores opened in the past year, yet net growth was only just over 40,000, meaning that more than 30,000 stores quietly exited amid the industry wave. From closing notices saying "We've graduated" to store owners each seeking their own way out—transferring their shops to cut losses, offering discounts, building differentiation, or even leaving the coffee industry altogether—the survival plight of independent coffee shops can no longer be avoided. An imbalance between supply and demand, consumers' growing preference for standardized chain brands, and cutthroat price competition—these factors together form the real picture of today's coffee market. This article examines the many faces of independent coffee shops under siege by chain brands and explores the logic behind the industry reshuffle and the way forward. [more…]

Why Do Coffee Bean Bags Puff Up? How Many Days Does Resting Beans Need? A Guide to the Best Drinking Window for Fresh Coffee

The bag of coffee beans you just bought is puffed up—has it gone bad, or is this normal? Many people who brew their own coffee have heard the term "resting the beans," but they may not fully understand the principle behind it. After roasting, coffee beans continue to release carbon dioxide, and this process directly determines how the flavor develops. This article starts with the mechanism of coffee bean degassing, explains why coffee bags inflate, analyzes the three major factors that affect the length of the resting period—heat transfer method, roast level, and roasting style—and uses Front Street Coffee's semi-direct-fire roasting as an example to give specific reference days. Finally, it shares a practical method that teaches you how to use your own senses to judge whether a coffee bean has reached its flavor peak, so you can find the resting period that suits you best. [more…]

British coffee shop employee secretly swapped card machines to steal customer payments; court rules no compensation to shop for losses

Recently, the UK's Daily Mail exposed a case of theft by a café employee: a staff member, without the knowledge of either the owner or customers, secretly replaced the store's card machine with his own device while at work, diverting customer payments into his personal account. The scheme came to light when a customer noticed that a meal priced at £42.1 had actually been charged £94. Over several months, the employee stole approximately £4,000 in total, was arrested by police, and fired. However, the court ultimately sentenced him to 12 months of community service and 120 hours of unpaid work, with no prison time and no requirement to repay the café's losses, only a £200 fine. The case has drawn attention to the abuse of employee authority and the protection of consumer rights. [more…]

How Does Filter Cone Material Affect Coffee Extraction? Analyzing Brewing Differences Through Thermal Conductivity and Specific Heat Capacity

Coffee filter cups on the market come in a wide variety of materials—resin, glass, ceramic, and metal each have their own fans—but what real impact do different materials actually have on brewing? Many people's first thought is the price difference, but setting aside cost, the most core difference between materials lies in their ability to control temperature. Thermal conductivity determines how quickly heat is transferred, while specific heat capacity relates to how much heat an object can store. Together, these two physical parameters directly change the temperature performance of hot water during the extraction process. Metal conducts heat fastest but also dissipates it quickly; ceramic has a high specific heat capacity but needs thorough preheating; glass performs mildly; and resin, because it absorbs heat slowly, has almost no effect on water temperature. In this article, Front Street Coffee will break down the characteristics of four common filter cup materials one by one, and combine them with the actual differences in flow rate among V60 versions made of different materials, to help everyone understand why you cannot simply copy extraction formulas from the internet, but should instead flexibly adjust your brewing strategy according to the material of the filter cup in your hands. [more…]

The Complete Guide to Coffee Bean Storage: Can Freezing in the Refrigerator Extend Freshness and Key Points for Moisture and Odor Prevention

Bought too many coffee beans and can't finish them for a while—can you just toss them in the fridge? Should they go in the refrigerator or the freezer? This article centers on the real goal of "freshness"—preserving aroma—and breaks down the five great enemies: strong light, high heat, moisture, oxygen, and odors, while offering practical home freshness-locking solutions. It also draws on the experimental conclusions of Swiss scientist SAMO SMRKE to explain that freezing can significantly slow down coffee bean degassing and delay the peak flavor period, but improper handling can also lead to air leakage, moisture absorption, and odor transfer. At the end, Front Street's detailed freezing and thawing tips are included to help you store your beans more reliably and enjoy better-tasting coffee. [more…]

Independent coffee shop losing 40,000 a month: with such a huge investment, should they persevere or cut their losses?

People keep entering the coffee industry, and others quietly bow out. One café owner invested nearly 2 million yuan upfront and is now losing as much as 40,000 yuan a month, so he launched an online poll asking whether he should keep going. Faced with steep transfer fees, rent, and operating costs, eighty percent of netizens advised him to cut his losses in time. The owner ultimately decided to fight on for four more months, trying to save himself by adding food combos, extending business hours, and creating an atmospheric space. This article lays out in detail his entrepreneurial predicament, netizens' views, and the overall state of the coffee industry, offering a reference for coffee lovers and entrepreneurs. [more…]