Coffee review

A cup of coffee to accompany you to drink out of the "tragedy" behind how to accompany you?

Published: 2024-11-17 Author: World Gafei
Last Updated: 2024/11/17, The once-hot coffee company collapsed, and the coffee chain, which has more than 600 stores in China, did not fade out of public view as its head office was empty. On the contrary, the 150 million yuan of intention money paid by more than 300 franchisees to accompany you to coffee is now irrecoverable. Coffee with you was jokingly called coffee to pay for you. It is represented by Kim Soo-Hyun and is called the first of the Korean series.

The once-hot coffee company collapsed, and the coffee chain, which has more than 600 stores in China, did not fade out of public view as its head office was empty. On the contrary, the 150 million yuan of intention money paid by more than 300 franchisees to accompany you to coffee is now irrecoverable.

Coffee with you was jokingly called "coffee for you" for a while.

The coffee chain, which is represented by Kim Soo-Hyun and known as "Korean first Coffee", has recently been pushed to the forefront of public opinion: negative information such as tight capital chain, debt collection by franchisees and employees has been constantly exposed. In addition, on June 1, Coffee, who just took office, officially resigned as CEO Qidong, making the outside world even more worried about the future of Coffee with you.

Industry experts point out that the situation of coffee with you has poured cold water on the rapidly expanding Chinese coffee chain. If the store expands too quickly, it will pose a great challenge to the store management system, training system, as well as the control and investment of funds.

Is it good enough to "compensate you" in this way?

Franchisee: 150 million intention money to compensate you for seven points.

A well-known domestic media received a phone call from a merchant claiming to join you with coffee. The person said that he had paid 500000 yuan to join with you. According to the letter of intent of the contract, if he had not opened a store six months after the contract was signed, the intention money could be refunded. "but now no relevant contacts can be found, and no intention money has been returned." The person also revealed that he is not the only one who has encountered this problem. More than 300 known victims have joined the merchants, and now more than 50 people have applied to the public security organs for filing a case.

It is worth noting that franchisees may not be able to solve the problem even if they turn to the public security organs.

Zhao Zhan, legal adviser to the Credit Evaluation Center of the Internet Society of China, said that the situation in which franchisees are unable to recover the money of intention is a civil dispute, and if they cannot provide evidence to prove that the other party committed intentional fraud at the beginning of the contract, it is difficult to classify the incident as a criminal offence and cannot file a case with the public security organ.

Employee: stop social insurance, stop medical insurance, pay you three points of face.

The problem of joining merchants is just the tip of the iceberg behind the broken capital chain of coffee, as well as those company employees who once had hope for your brand of coffee.

According to people familiar with the matter, at present, more than 160 employees in your headquarters have been in arrears of wages, the longest of which is five months, with a rough calculation of the total arrears of nearly 10 million yuan. "the most infuriating thing is that the company has suspended the social security and medical insurance of its employees without any notice." The person said that after going to the Social Security Bureau to inquire, the company began to stop paying social security, medical insurance and other expenses for its employees in November and December last year, but the corresponding amount was still deducted from the salary slip at that time. In March and April this year, the company cut employees directly at the Social Security Bureau, and the employees knew about these situations only recently.

Is it really going to kill you?

Since its establishment in 2008, coffee accompany you has more than 900 stores in South Korea, accounting for 70% of the market share, and has opened the first store of the "foreign" brand in Times Square in Manhattan to enter the European and American markets. In March 2012, coffee accompanied you into the Chinese market and blossomed rapidly in first-and second-tier cities. In just a few years, it has opened nearly 600 stores, established a supply chain system, and created a miracle of opening 500 stores in a year.

So why are such popular Korean brands in such a position in China?

Of course, similar hot topics have been solved by a lot of Daniel, so the editor only focuses on the so-called mainstream reasons for the big guys today.

The sky-high price of the franchise fee is actually a circle of money.

On a website called China Restaurant Network, it can be found that joining coffee to accompany you costs 20-500000 yuan, but it actually costs more than that. Some netizens revealed that joining coffee to accompany you ranges from 1.5 million to 3 million, which is really a sky-high price. The coffee company says it will pay 51% of the fee, but in fact, most of them are taken by the franchisee, there is no proof of investment, the number can be said freely, the franchisee has no idea that you actually pay that 51% of the fee.

The franchise fee is so high that the franchisee is enough to open two coffee shops of their own, so some people attribute this to coffee to accompany your company to circle money to make other investments, and they don't care about the coffee shop to open up the market and develop well.

Due to the discord among shareholders, there are many celebrity endorsements to be hired.

In addition, although Coffee accompany you is indeed a South Korean brand, entering the Chinese market is a joint venture between China and South Korea. according to the data disclosed by the Beijing Enterprise Credit Information Network, in 2013, the three major shareholders of the company are China Enterprise Asia Pacific Investment Co., Ltd., Coffee Co., Ltd., founder Jin Shanqi, and Coffee Company Hong Kong Holdings Co., Ltd., with contributions of 25 million yuan, 10 million yuan and 15 million yuan respectively. In 2014, Jin Shanqi's contribution decreased from 10 million yuan to 5 million yuan, while that of Coffee Hong Kong Holdings Co., Ltd. increased from 15 million yuan to 20 million yuan. Recently, there is news that South Korea has already withdrawn its investment.

People who used to work with you said that the shareholder relationship between China and South Korea was not harmonious. "the two sides caused conflicts over whether to hire celebrity endorsements at high prices, which ended with a compromise from South Korea."

Coffee companion you have always liked to use Hallyu star endorsements, and have thus opened up the Korean market, but this time they have gone a little too far: before Kim Soo-Hyun, the spokesman for coffee with you was Zhang Genshuo, and then soon changed people. in fact, this is not only not conducive to the promotion of brand image, but also a huge waste of advertising costs for the company.

The real culprit behind "accompany you"

Coffee accompanies you to this situation, it is no longer a city-by-place gain and loss, nor can you solve the problem by financing money alone, as one expert said, this is a huge hidden danger left after rapid expansion.

Poor control at headquarters is the core of the crisis.

Coffee with you in the core of the crisis originated in the headquarters, with unpaid wages, arrears as the source, gradually extended and led to the closure of the end of the store. Because most of the stores that accompany you are opened by joining, if the commercial chain wants to join, the management and control ability of the headquarters must be strong and the training mechanism must be improved. However, the coffee headquarters did not establish a good chain management system, did not implement the standardized process to the end, resulting in the lack of guidance, control and control mechanism.

On the other hand, coffee accompanies you between different stores with different products, and even different menus, which exposes the problem of imperfect purchasing links, which undoubtedly weakens the consistency of product quality and makes consumers doubt.

Rapid expansion of capital chain fracture is the main problem

Many people believe that the coffee that accompanies you in the so-called "Korean first Coffee" is inextricably linked to the rapid expansion of China. After coffee accompanies you to enter the Chinese market, it will be greatly liberalized to join. The coffee of the first store in the Chinese market only opened in Beijing in 2012 to accompany you. By 2014, there were more than 600 stores in China and nearly 2000 stores worldwide. Starbucks, which has been in China for more than 15 years, has only more than 1,000 stores.

Zhu Danpeng, a researcher at the China Food Business Research Institute, told the analysis that although the coffee industry is growing, it does not mean that it can be entered blindly. The rent of commercial real estate is very high, and the operating cost is not low. For example, McDonald's needs to estimate the flow of people for a year and make a detailed assessment of business risk. In fact, some franchisees pointed out that coffee accompanies you to focus on opening a store, but the ability of store operation and management seems to be lagging behind.

How to "accompany you" to take the back road

At the same time of the condemnation, the only thing to be thankful is that most of the coffee shops in Beijing have not been affected.

A few days ago, the news that Kopi Luwak and Coffee have reached a strategic cooperation with you has spread like wildfire, and an insider said that Kopi Luwak will help Coffee to bear the recognized debt with you. However, so far, no new progress has been revealed on matters related to cooperation. "who will help pay off debts before partnering with a company?" Franchisees are skeptical of the above statement. On the 11th of this month, more than 50 franchisees, wearing uniform T-shirts and holding banners, were still on their way to collect debts from coffee.

From: MALL era

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