How Caffebene Used Equity to Incentivize Store Managers

In the cutthroat world of international coffee retail, talent retention and motivation aren’t just HR talking points—they’re strategic imperatives. For foreign brands expanding in China, winning over local leadership is critical. One South Korean coffee chain found a bold way to align ambitions with results.

In 2014, Caffebene announced a 'send store' initiative offering equity and profit-sharing to 20 top store managers annually—turning high performers into stakeholders.

The ‘Send Store’ Incentive: Profit Sharing for Top Performers

On October 28, 2014, Caffebene held its National Outstanding Store Manager Awards in Shanghai. During the event, parent company Caffebene Management revealed its new 'send store' program. This initiative targeted the brand’s best store managers and staff, granting them equity stakes and profit dividends as rewards. The goal? Build a tiered talent system that nurtures and retains high performers through tangible, long-term incentives.

Caffebene’s Rapid Rise in China

Caffebene, a European-style Korean coffeehouse chain, capitalized on the Korean Wave to quickly gain traction in China. By blending a relaxed European café concept with localized appeal, the brand expanded swiftly. But behind the rapid growth was a triad of success: sharp market insight, strong team development, and motivational incentive structures. The 'send store' program was a natural extension of this strategy, designed to reward and retain the employees driving that expansion.

Why Team Cohesion Drives Brand Success

Caffebene’s CEO, Wang Chaolong, emphasized the power of teamwork at the brand’s Fifth National Operations Conference and Outstanding Store Manager Awards. “A business is only as strong as its people,” he said. “A united, motivated team can create a nuclear fusion-like impact.” The brand’s early growth—from its first Beijing store in 2012—was fueled not just by its European-café-meets-Korean-comfort concept, but also by the exceptional cohesion among its managers and staff. This unity, Wang argued, became the brand’s most valuable asset.

Building a Talent Pipeline Through Incentives

The 'send store' program wasn’t just about rewarding past performance—it was a strategic move to cultivate future leaders. By turning top store managers into profit-sharing partners, Caffebene aimed to strengthen team morale, boost accountability, and identify high-potential candidates for senior roles. The annual rollout of 20 equity-based incentives created a competitive yet collaborative environment where employees strived for excellence, knowing their efforts could lead to ownership and leadership opportunities within the brand.

Frequently Asked Questions

What was Caffebene’s 'send store' program?

Caffebene’s 'send store' program, launched in 2014, offered equity and profit-sharing incentives to 20 of its top-performing store managers and staff each year. The goal was to motivate employees by giving them a stake in the business’s success and cultivating future leaders from within.

When did Caffebene introduce the equity incentive plan?

Caffebene introduced its equity incentive plan, the 'send store' program, on October 28, 2014, during its National Outstanding Store Manager Awards in Shanghai.

How many store managers benefited from the program annually?

The program aimed to reward 20 top store managers and staff members each year with equity and profit-sharing benefits.

What role did CEO Wang Chaolong play in promoting the initiative?

Wang Chaolong, CEO of Caffebene Management, championed the initiative, stressing the importance of team cohesion and calling it a 'nuclear fusion'-like force that could drive the brand forward. He highlighted the value of a motivated, unified team at the brand’s 2014 operations conference.

Where did Caffebene first launch in China?

Caffebene opened its first store in Beijing in 2012, marking its official entry into the Chinese market.

How did Caffebene aim to retain talent through this program?

By providing profit-sharing and equity incentives, Caffebene sought to build a loyal, motivated workforce. The program fostered accountability, encouraged internal promotion, and helped identify future leaders, ensuring long-term retention of high performers.

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