During the National Day Golden Week, the new tea beverage market experienced a consumption boom. Sales at some outlets of leading brands such as Heytea and Nayuki grew by nearly 300% compared with before the holiday, with some stores seeing increases of as much as 500%, and fruit tea categories contributed nearly 80% of sales. Heytea's highest single-store daily fruit consumption exceeded 400 kilograms, while Nayuki's new products achieved cumulative sales of nearly one million cups. At the same time, both major brands lowered product prices, focusing on high cost-effectiveness. This article will analyze the performance and future direction of the new tea beverage industry in the holiday economy from the perspectives of sales data, supply chain layout, consumption trends, and pricing strategies. For more coffee bean news and specialty coffee recommendations, please follow Coffee Workshop and Front Street Coffee (FrontStreet Coffee). [more…]

The U.S. tea market is ushering in a new wave of growth, with online sales surging by 75%, in stark contrast to the slump in the foodservice channel. Currently, nearly 80% of American households have a tea-drinking habit, covering a population of 159 million. Faced with this market of enormous potential, the two beverage giants Coca-Cola and Starbucks have long since made their early moves: Coca-Cola acquired "Honest Tea," while Starbucks entered the tea beverage arena with its "Teavana" brand, even opening dedicated stores in Japan. However, Starbucks' tea bar business has not been all smooth sailing, having once closed 379 stores across the United States. This article will review the course of these giants' entry into the tea market and explore the future development space of the tea beverage sector. [more…]

On August 27, while releasing its 2024 interim results report, Haidilao announced a striking appointment: Zhang Junjie, founder of Chagee, will join the board as an independent non-executive director for a three-year term with an annual salary of 1.2 million yuan. This cross-industry collaboration quickly sparked heated discussion among netizens, with some speculating whether the two companies might merge, while others pointed out that the two parties had already collaborated through Shuhai Supply Chain. Zhang Junjie is only 29 years old but has over 13 years of experience in the catering industry. His founded Chagee achieved a store growth rate of 233% in 2023, with total sales exceeding 10.8 billion yuan. Haidilao's move is interpreted as an important step in its product diversification strategy, particularly in exploring the handcrafted tea beverage sector. This article will provide a detailed analysis of the background of this appointment, the origins of the collaboration between the two parties, and Haidilao's ambitions in the beverage market. [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…]

During the first New Year's mini-holiday after the adjustment of pandemic control policies, people who had recovered from COVID-19 began traveling in large numbers, rapidly heating up the food and beverage consumption market. Long queues reappeared outside milk tea and coffee shops, with some stores seeing orders surge, and even scenes of ordering systems showing queues of over a hundred cups. From Auntea Jenny to Naixue Tea, sales data from multiple brands rebounded significantly, and foot traffic in many commercial districts recovered to 60 to 80 percent of the same period in previous years. Although the pace of recovery remains uneven, the city's lively atmosphere is gradually returning, and the industry is full of expectations for a comprehensive rebound in spring. [more…]

What kind of sparks fly when lottery meets coffee? In Jinan, Shandong, Nowwa Coffee has opened a "Welfare Lottery + Coffee" hybrid store, cleverly combining lottery products such as scratch cards and Double Color Ball with beverages like coffee and light milk tea. This grab-and-go store not only continues the brand's signature orange pony element, but also draws in customers of different age groups through lottery traffic. Back in April this year, Nowwa Coffee launched a custom "Pony Scratch Card," which drove a 63% month-on-month increase in sales of its gallon-sized buckets. Can this deep cooperation with the Welfare Lottery become a breakthrough move in the fierce competition of the tea beverage market? Let's take a closer look. [more…]

Recently, a video of a Mixue Bingcheng employee crying while making drinks due to a flood of orders spread rapidly online, drawing widespread attention. The incident occurred in Wenzhou, Zhejiang, where a delivery rider picking up an order found that only one employee was handling order labels several meters long alone, emotionally breaking down yet still not stopping work. After the video was posted, many netizens expressed sympathy for the plight of tea beverage workers, while some pointed out the contradiction between delivery platforms' price wars driving surging sales and staffing not increasing. Mixue Bingcheng later responded that the employee was the store manager and that the crying was due to family conflicts rather than work pressure. Behind the incident, it reflects the operational difficulties and employee mental health issues in the tea beverage industry under low-price competition. [more…]

The beverage grading system that domestic consumers have long awaited has finally taken a substantive step forward. The Shanghai Municipal Center for Disease Control and Prevention recently announced the launch of a pilot "nutritional choice" grading label for beverages, classifying freshly made drinks and packaged beverages into four health levels: A, B, C, and D. Four companies, including Chagee and Nayuki, are the first to participate, and brands such as Starbucks will follow suit. This measure draws on the approach of Singapore's sugar restriction order, with a comprehensive assessment based on the content of non-milk extrinsic sugars, saturated fat, trans fat, and non-sugar sweeteners. Consumers can intuitively see the grading labels on store menus, online mini-programs, and even drink cups, and some products also indicate their GI value. Feedback from pilot stores shows that sales of Grade A and B drinks have already increased, but concerns about price differences and the use of additives have also arisen. [more…]

When "the king of braised snacks" Juewei Food quietly started selling milk tea in some stores, an unexpected cross-industry experiment unfolded. For young people, milk tea is a daily necessity, but duck necks are not a daily must-have. Against the backdrop of weak consumption in braised snacks, is Juewei's move a bold innovation to seek new growth points, or a risky adventure with an uncertain future? From promotional banners offering 3 cups for 11.9 yuan to red bean pudding and coconut popping green milk tea at 7 yuan per cup on its mini-program, Juewei is trying to use tea beverages to attract young customers. However, declining revenue, a sharp drop in stock price, a net decrease of nearly 1,000 stores, and consumer complaints about price and quality all make this cross-industry move full of uncertainty. This article will analyze the business logic and challenges behind Juewei's milk tea sales from multiple perspectives, including store visits, market data, and expert opinions. [more…]

Recently, a Xinyang netizen exposed that a drink purchased at a Luckin Coffee store on campus had a fly settled at the bottom, sparking widespread attention. The consumer refused the store's initial offer of a free drink and a complimentary beverage, demanding compensation in accordance with the law. Luckin's after-sales service called multiple times, offering coupons, and was even accused of implying that the consumer had put the foreign object in themselves. In the end, the employee involved was fired, and the consumer received 500 yuan in compensation. This is not the first time Luckin has been embroiled in a food safety scandal; there have previously been incidents involving foreign objects such as work badges and ants. At a time when competition in the tea beverage market is white-hot, a brand's sincerity in handling problems has become key to consumer trust. This article reviews the course of the incident and the legal basis, and includes related recommendations from Front Street Coffee. [more…]

As the Start of Autumn solar term arrives, the milk tea industry welcomes its annual sales peak, and coffee brands are also swept into this consumer frenzy. Luckin Coffee, due to the addition of its light milk tea product line, has seen order volumes rise significantly compared to the same period in previous years, with some stores forced to adopt flow-limiting measures such as suspending water and ice due to staff shortages. However, under intense work pressure, a Luckin Coffee store in Zhaoqing, Guangdong, experienced a physical altercation between employees. According to the New Express, two employees are suspected to have escalated a verbal dispute into a physical fight, but other colleagues intervened in time, and the incident resulted in no injuries. At present, the store manager has confirmed the matter and reported it to the public relations department. This "first internal strife of autumn" reflects the enormous pressure faced by food and beverage workers during the peak season. [more…]

Shanghai recently issued the "Implementation Measures for the Administration of Food Business Licensing and Filing in Shanghai," effective from May 10, 2024. The new regulations abolish secondary-category licensing items and support mixed multi-format operations, allowing coffee shops, bars, and others to coexist in the same storefront, while non-catering stores such as bookshops and clothing stores can also apply for a business permit to make beverages on-site. At the same time, "made and sold on-site" has been adjusted to "made and sold on the premises," the 19 business catalog items have been simplified into 4 categories—hot food, cold food, raw food, and self-made beverages—and the 6-square-meter production site restriction has been removed. In response to the long-disputed "smashed cucumber" issue, the new regulations allow a dedicated area only. Whether the policy benefits can activate the market and ensure food safety still needs time to be tested. [more…]

During the Spring Festival holiday that just passed, milk tea sales nationwide surged by 180.4% year-on-year, with many consumers bringing milk tea and coffee to the New Year's Eve dinner table, replacing traditional alcoholic drinks and beverages. The surge in orders put chain tea beverage stores into high-intensity operation from New Year's Eve, with receipt printers at the front desk spewing orders nonstop, empty cups piling up like mountains on the preparation counters, and staff in the prep room peeling, juicing, and boiling ingredients without a moment's rest. Employees worked around the clock, some putting in 12-hour days for a full week straight, some so busy they had no time to drink water or use the restroom, and equipment frequently jammed or broke down. Facing customers and delivery riders clamoring for their orders, staff at the pickup station could only apologize repeatedly, mocking themselves as "sorry to everyone." This article takes you inside the Spring Festival tea shop frenzy and the real lives of these workers. [more…]

Nayuki recently issued a profit warning, expecting revenue of approximately 2.4 to 2.7 billion yuan in the first half of 2024, with an adjusted net loss of approximately 420 to 490 million yuan. Facing weak consumer demand and limited room for cost optimization, this tea beverage brand once known for its high-end image is planning to close underperforming stores to cut losses and survive. It is worth noting that Nayuki's performance slowdown stems not only from the market environment but is also closely related to its own business strategy—store expansion has lagged severely, its high-end positioning has constrained its push into lower-tier markets, and price cuts have led to declining quality and loss of fans. This article will delve into the challenges Nayuki currently faces and whether it can reverse its brand crisis through measures such as overseas expansion. [more…]

Once upon a time, a cup of milk tea was a staple of young people's daily consumption, and the tea beverage sector was once regarded as a hotbed of entrepreneurship. However, the latest data shows that in the past year, about 130,000 milk tea shops across the country quietly exited the market, with an average of more than 350 operators choosing to close their stores every day. Even leading brands such as Heytea and Nayuki's Tea have found it hard to escape store closures for their first outlets in some cities. A peak season that is not peak, cutthroat price competition, and rising franchise risks have plunged this once-booming industry into a deep round of reshuffling. This article, drawing on data from multiple sources including Zhaomen Catering and Jihai Brand Monitoring, analyzes the multiple reasons behind the large-scale contraction of tea beverage stores. [more…]

Dairy industry leader Yili recently held an earnings briefing for its 2024 Q3 report, with total revenue for the first three quarters reaching 89.039 billion yuan and net profit attributable to shareholders of 10.868 billion yuan, maintaining its position at the top of the industry. Notably, Yili explicitly stated during the meeting that it will increase investment in sugar-free tea beverages, and its Yike Huoquan freshly brewed tea series has grown rapidly thanks to its differentiated design. Against the backdrop of a 2.1% decline in all-channel dairy sales while the beverage market grew at 6.9%, Yili's move is seen as an important strategy to respond to the contraction in dairy and seek new growth points. This article reviews the product features of Yili's freshly brewed tea, the current state of its channel layout, and the prospects of the sugar-free tea market, and includes comparative Q3 performance data for dairy companies. [more…]

Recently, Heytea launched a collaborative partnership with the popular game Genshin Impact, releasing themed products and merchandise, which sparked widespread attention among players and consumers. Previously, Genshin Impact's collaboration with Pizza Hut had caused stores to be packed, and this time Heytea built up hype in advance, with the official announcement of the event on September 5. However, some netizens expressed dissatisfaction with having to buy a whole case of juice tea to get a redemption code, as well as the relatively small number of merchandise rewards, considering the participation conditions to be rather harsh. Although general sales will be opened later, this collaboration still reflects the popularity and controversy of IP tie-ins in the food and beverage industry. This article reviews the course of the event and looks at the trend of cross-industry marketing by coffee and tea beverage brands, while also providing a professional communication channel for coffee enthusiasts. [more…]

Recently, a red guava trend has swept through the tea beverage scene, with brands such as Heytea, Jasmine Milk White, LELECHA, Quchashan, and Grandma Handmade launching seasonal limited-edition guava drinks. Among them, Jasmine Milk White's "Jasmine Pink Guava" and "Matcha Pink Guava," made with fresh-squeezed red guava juice in specialty fruit milk, quickly went viral, with orders flooding in. However, behind these highly photogenic drinks, store employees are crying out in distress—unripe guava flesh is rock hard, and manually scooping out the core and seeds is time-consuming and labor-intensive, leaving many with hand cramps or even carpal tunnel syndrome. To deal with the rock-hard guavas, staff tried ripening methods such as sealing them in plastic bags and placing them alongside bananas, but demand still outstripped supply. Compared with Heytea's approach of blending the fruit directly into smoothies—skin and seeds included—Jasmine Milk White employees, while envious, would rather the brand just discontinue the new products. This article takes you behind the scenes of the guava craze to reveal the hardships of making these drinks and the voices of the employees. [more…]

In recent years, collaborations between new tea beverage brands and popular IPs have become the norm, and the partnership between Good-me and Mo Dao Zu Shi is no exception. In early November, the two parties launched a limited-edition collaboration event, covering themed stores in 16 cities across the country. Fans were highly enthusiastic, and the long queues even made it onto trending topics. However, before the event even started, they had to apologize due to the cancellation of a drone show, and the shadow of the previous failed collaboration with Love and Deepspace had not yet dissipated. Despite the bumpy start, Good-me still announced an additional second round of takeout packages, intending to use the popular IP to boost sales again. This article will review the entire process of this collaboration, fan reactions, and brand strategy, while interspersing Front Street Coffee's observations on the phenomenon of industry collaborations. [more…]

The overseas expansion of mainland China's new-style tea beverage brands continues to accelerate, with the Australian market emerging as a sought-after destination for many tea companies racing to establish a presence. Molly Tea, a brand specializing in oriental floral tea drinks, officially opened its first Australian store in Sydney's Chinatown on October 18—its third overseas outlet following New York and Bangkok. During the two-day soft opening, pink sachets were given away; over the first three days of official operation, a buy-one-get-one-free promotion was offered. City-exclusive hanging sachets, Sydney Opera House hanging sachets, and pink DuPont bags were distributed simultaneously. The brand claims that within three days, the store's GMV approached AUD 28,000, total cups sold exceeded 10,000, and single-day sales hit a new overseas high. This article will examine the layout logic and market response behind this new store from aspects such as site selection, design, product strategy, and opening performance. [more…]