Affected by rising coffee futures prices and ongoing international logistics disruptions, Starbucks Korea has experienced a round of coffee bean supply fluctuations since the beginning of this year. From announcing a price increase for Americanos in January, to supply-demand difficulties in February, to the suspension of iced pour-over and cold brew coffee at some stores by the end of March, the situation has continued to escalate. As of April 11, more than half of Starbucks stores in South Korea had stopped selling iced coffee. Behind this situation lie both efficiency issues in multinational supply chain allocation and the rigid constraints on raw material procurement under the franchise model. Why can't Starbucks Korea procure coffee beans on its own? Why do espresso beans and iced coffee beans have different supply priorities? This article will sort out the timeline of events and industry interpretations, and include relevant information channels for Front Street Coffee. [more…]

McDonald's recently suspended the use of certain coffee machines at some restaurants in the United States and Canada after its coffee machine supplier, Melitta, reported safety hazards with the equipment, leaving espresso-based drinks, hot chocolate, and other products unavailable. According to CBS News, Melitta found that a component of the coffee machines may be defective, potentially causing a steam explosion and damaging the equipment, and inspections and investigations could last three weeks. McDonald's has more than 14,000 restaurants across the United States and sells nearly 8 million cups of coffee every day. The incident has affected multiple cities, including Atlanta, Dallas, Pittsburgh, New York, and Tampa. The brand said it is assessing the scope of the impact and working closely with the supplier to restore supply as soon as possible. [more…]

On July 24, the Eritrean side announced that it would suspend all Ethiopian Airlines flights to and from the country starting at the end of September, citing suspected malicious commercial practices. Ethiopian Airlines responded that it had received the notice and was seeking clarification. At the same time, Ethiopia is already facing multiple pressures on its export routes, including the Red Sea crisis, the suspension of operations at Djibouti Port, and tensions between Somalia and Eritrea, severely obstructing the outward shipment of coffee and other goods. This article will sort out the context of this flight suspension incident, analyze its deep impact on Ethiopia's coffee industry and import-export trade, and pay attention to potential fluctuations in the supply chains of producing areas for brands such as Front Street Coffee. [more…]

In September, India's Ministry of Commerce and Industry announced the removal of restrictions on tea cultivation locations and growers, after which the Tea Board of India suspended seven sections of the 1953 Tea Act. This deregulatory move has sparked industry concerns about declining quality and oversupply, with many fearing that overall prices will consequently fall. Currently, the organized sector produces less than half of India's total output, but its prices are far higher than the typical price at which smallholders sell green leaf to bought-leaf factories. Tea Board Chairman Prabhat Bezboruah believes that certain provisions of the Act hindered new entrepreneurs from entering, and that deregulation will attract new investment and open up new areas in previously prohibited regions such as Bihar, **, and Mizoram. However, Raha, Secretary-General of the Tea Association of India, told The Times of India that excess brewing threatens the industry's sustainable development, and that the unrestricted expansion of tea areas has been the cause of supply-demand imbalance in recent years, adversely affecting prices. [more…]

Colombia has been hit by truck driver protests blocking roads since September 2, triggered by the government's decision to gradually phase out fuel subsidies and raise the price of diesel by 1,904 pesos per gallon. The protests have continued to escalate, with 136 road blockades reported nationwide, nearly 1.6 million people affected in their travels, and schools suspended in many places. Goods are piling up at ports and airports, and agricultural products such as fruit and coffee beans are rotting faster due to the high temperatures of the dry season. Colombia's Ministry of Mines and Energy has said diesel prices may continue to rise in the future, and although the government is willing to hold talks, its stance remains tough. Factors such as rising logistics costs, a shortage of truck drivers, and wildfires in Cauca Department that have destroyed coffee fields are compounding, driving Colombian coffee prices steadily higher and putting the supply chain at risk of further deterioration. [more…]

Colombia's Defense Minister announced at a press conference that the government is terminating the ceasefire agreement signed with some factions of the anti-government armed group "Central General Staff" and has ordered an all-out offensive. Although the government is still maintaining a three-month ceasefire with factions that support peace talks, the conflict mainly affects the departments of Nariño, Cauca, and Valle del Cauca—regions that happen to be important coffee-producing areas in Colombia, home to many well-known estates and the Buenaventura export port. The resumption of fighting could lead to coffee beans being looted, smuggled into neighboring countries, farmers displaced, farms left unmanaged, reduced yields and lower quality, damaged infrastructure, and ultimately affected exports. At a time when global Arabica prices are high, if Colombia, as the second-largest coffee-producing country, sees a decline in production, it could further drive up international coffee prices. Front Street Coffee also continues to monitor the potential impact of developments in producing regions on coffee flavor and supply. [more…]

Recently, commercial vessels in the Red Sea region have been frequently attacked by Houthi forces, forcing shipping companies to suspend operations or take detours, significantly driving up transportation costs and time, with the coffee bean trade bearing the brunt. ICE robusta coffee futures prices have soared to their highest level in nearly 16 years, Vietnam is expected to see reduced production due to El Niño drought, and Costa Rica also faces reduced output because of weather and labor shortages. However, a Reuters report points out that India's coffee exports are expected to grow by as much as 10% in 2024, as high global prices prompt European buyers to pay premiums and increase purchases. Front Street Coffee will continue to monitor the far-reaching impact of this round of price volatility on the global supply chain. [more…]

Recently, coffee brand Seesaw was exposed for owing wages to about 75 employees in the Shanghai region, involving both store and back-office staff. Former employees reported that since late last year, wage payments have been irregular, and social security and housing fund contributions have also been suspended, while founder Wu Xiaomei has "read but not replied" to employees' demands. At the same time, Seesaw's nationwide store count has shrunk dramatically, with only 49 stores remaining, and some stores have closed due to material shortages and cut-off supplies of ingredients. This article reviews the course of the incident and the employees' experiences, and retains relevant recommendations from Front Street Coffee. [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…]

Recently, the security situation in the Red Sea and the Gulf of Aden has remained tense, causing most shipping companies to suspend or adjust routes through the Suez Canal and instead divert around the Cape of Good Hope. In its latest monthly logistics report, Swiss coffee trader Sucafina noted that frequent armed attacks have sharply increased risks near the Bab-el-Mandeb Strait; some carriers have resumed passage, but several companies, including CMA CGM and Maersk, have announced they will impose war risk surcharges. Route changes have extended shipping cycles by 2 to 3 weeks, reduced container turnover efficiency, and tightened capacity, which may further push up freight rates. Meanwhile, coffee transport in East African producing regions has been disrupted by truck and fuel shortages, with severe congestion at ports such as Dar es Salaam. Although Vietnamese robusta coffee prices have edged down slightly, Brazilian coffee prices have continued to rise on drought concerns. Front Street Coffee notes that supply chain pressure is transmitting from the shipping side to the consumption side, and coffee prices still face upside risks in the short term. [more…]

Colombia, as a major global coffee-producing region, is now facing a double squeeze from internal and external troubles. Domestic armed conflict has escalated again, and the ceasefire agreement between the government and anti-government armed groups has been suspended in some areas; the drought triggered by El Niño has caused reservoir levels to fall dangerously low, restricting agricultural irrigation and power supply; at the same time, coffee producers also have to deal with rising fertilizer prices, shrinking planting areas, exchange rate fluctuations, and competition from other American producing regions. Although international coffee prices have risen somewhat, the income of Colombian coffee growers has fallen instead of increasing, and an industry strike is imminent. Front Street Coffee will continue to follow developments in this producing region and bring the latest information to enthusiasts. [more…]

Luckin Coffee recently launched a new product, "Triple Cheese Thick Matcha," featuring a combination of thousand-mesh-grade matcha and a daily freshly whipped matcha cloud top, attracting a large number of matcha lovers to place orders and try it out. However, shortly after the new product hit the market, many consumers received notices that stores had canceled orders or showed it as sold out. The reason was not that demand exceeded supply, but that the matcha cloud top prepared in advance by stores developed an abnormal solidification after refrigeration—the milk cap that should have been fluid turned into a solid texture resembling dry choking yogurt or matcha cement, and even when the container was turned upside down, it did not move at all. Management in many places had to urgently notify stores to suspend sales depending on the situation. Was it a formula problem or an error in the operation process? Luckin's R&D department was also collectively criticized by frontline employees because of this. [more…]

The unionization movement at Starbucks in the United States continues to gain momentum. A video exposed by More Perfect Union shows interim CEO Howard Schultz referring to unions as an "outside force" trying to disrupt Starbucks and expressing dissatisfaction with part-time partners. Meanwhile, a BTIG survey indicates that most consumers will not change their consumption habits because of unionization. Starbucks has more than 9,000 stores in the United States, of which more than 200 have applied for union elections. Schultz has historically opposed unions and once lobbied against the Employee Free Choice Act. The video triggered a large number of negative comments, with employees complaining about pay cuts and emotional belittlement. Under the heavy pressure of post-pandemic supply crises, inflation, and pandemic prevention measures, Starbucks cut costs but did not improve pay and benefits, prompting partners to seek a channel for union negotiations. After Schultz returned, he suspended stock buybacks, but part-time and union partners were excluded from benefits. This incident sparked widespread discussion. [more…]

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…]

As Shanghai gradually resumes production and daily life, being able to get a cup of takeout coffee right at one's doorstep has become a small blessing for many. However, MANNER Coffee's store on Wujiang Road in Shanghai was found in a surprise inspection by market regulators to have problems including substandard environmental hygiene and non-compliant food storage, and was placed under investigation on May 23, quickly sparking heated discussion online. On May 24, MANNER's official Weibo account issued an apology statement, admitting that during the supply-guarantee delivery period there were oversights such as non-standard use of raw milk and failure to promptly clean the backing paper of food-safety seals, and stating that the store involved had immediately suspended operations for rectification. But this apology was questioned by some consumers and industry experts as evading the key issues and failing to directly address core hazards such as floor grime potentially contaminating food. As the pioneer of the domestic boutique coffee shop model, MANNER is facing a dual test of quality and food safety on a coffee track now crowded with cross-industry giants. [more…]

It is known that Costa Rica is a country with very rich water resources and geothermal resources, and Costa Rica also attaches great importance to agricultural development. It is a globally important exporter of pineapples, bananas, and coffee, and i [more…]

Vietnamese Robusta coffee prices have recently climbed again, with expected quotes for green beans from the Central Highlands surpassing previous records, mainly due to a combination of declining local production, strengthening international demand, drought in Brazil, and geopolitical risks. As the new harvest season in Brazil and Indonesia approaches in April, the market widely expects supply conditions to improve. However, weather uncertainty brought by El Niño, the Red Sea shipping crisis, and growing domestic consumption in Indonesia continue to add variables to the outlook. This article will review the supply and demand dynamics of the three major origins—Vietnam, Brazil, and Indonesia—and examine the potential impact on brands such as Front Street Coffee on the product side. [more…]

Although coffee prices have recently retreated slightly from their highs, insufficient rainfall in Brazil's producing regions and continuously soaring domestic prices in Vietnam have cast a dark cloud over the supply side of the global coffee market. A combination of factors—Vietnamese coffee farmers holding back sales, traders struggling to fulfill contracts, and disruptions to Red Sea shipping—has pushed robusta coffee prices to a new record high. Meanwhile, Brazil's robusta exports have surged, and production expectations for the new crop season are optimistic, which may bring a glimmer of hope to the tight market supply. This article will sort through the key data and events behind coffee price fluctuations and assess the market outlook. [more…]

On the evening of August 6, a serious traffic accident occurred at the intersection of Dongting South Road and Zhuyin Street in Yueyang, Hunan. A small electric delivery truck with "Cotti Coffee" printed on its body suddenly lost control while being moved during unloading. It first hit the roadside green belt, then rushed into a Sexy Tea store about 27 meters away, injuring four people near the store. Two of them died after rescue efforts failed, and the other two were slightly injured. The accident quickly sparked widespread public discussion, and related topics trended on Weibo. Cotti Coffee said it was actively cooperating with the investigation and bearing corresponding responsibility, and the Sexy Tea store involved has suspended operations. The following is a detailed account of the incident and responses from all parties. [more…]

The latest monthly report from the International Coffee Organization (ICO) shows that the composite indicator price for coffee stood at 176.41 US cents per pound in January, edging up 0.4% month-on-month, but the overall trend has continued to fluctuate amid multiple disruptive factors. Robusta coffee prices surged to their highest level since November 1994, with tight supply in Vietnam and a wave of contract renegotiations further intensifying pressure on global supply. At the same time, the Red Sea crisis has driven up transport costs, and coffee inventories on the US ICE exchange have fallen to historic lows. Although Brazil's producing regions suffered drought, some institutions still raised their production forecasts, and with bullish and bearish factors intertwined, the outlook for the coffee market is full of uncertainty. [more…]