Why Upstore Coffee’s Brand Fails Customers

In 2011, a Beijing customer named Zhang paid 5,000 yuan—equivalent to an 8,000-yuan credit or about 6.3% off—for a stored-value card at an Upstore Coffee location inside the Xi Dan Grand Hotel. He used just 500 yuan of it before the store shuttered repeatedly under flimsy “renovation” excuses. What followed was a multi-year battle to reclaim the unused 4,500 yuan, revealing a troubling pattern behind the Upstore Coffee brand.

Up to 500+ franchised Upstore Coffee locations in China—including 100+ in Beijing—offer no centralized accountability. The company officially disclaims responsibility for its franchises’ actions, leaving customers like Zhang with worthless stored-value cards and no recourse.

The Stored-Value Card Trap

Zhang thought his 5,000-yuan investment in an Upstore Coffee stored-value card—advertised as worth 8,000 yuan—was safe because of the brand’s visibility and supposed chain-wide coverage. But after the Xi Dan location closed intermittently starting October 2011, none of the other Upstore locations would honor his card. Attempts to contact the regional and national offices yielded only deflection: the Beijing branch claimed no control over franchises, while the Shanghai-based headquarters insisted no unified management structure existed despite listing nine official branches on its website.

Repeated calls to Upstore’s Beijing office led to contradictory responses. First, staff said the franchise operated independently and wasn’t the company’s concern. Later, a manager declared all 100+ Beijing locations were franchises with no company oversight—effectively admitting that the company washes its hands of any franchise misconduct. In the end, Zhang was told to seek reimbursement from the now-defunct Xi Dan store, which had long since vanished.

Franchise Model: A Shield for the Parent Company

Upstore Coffee operates entirely on a franchise basis. According to its own published franchise requirements, opening a 500-square-meter location in Shanghai costs 180,000 yuan in franchise fees for a three-year term, with annual royalties of 30,000 yuan. Outside Shanghai, fees range from 200,000 to 250,000 yuan upfront, plus 20,000–27,000 yuan annually. Added costs for training, materials, and design push the initial investment to between 460,000 and 530,000 yuan per outlet. Franchisees also pay a 100,000-yuan deposit—meant to protect the parent company’s financial interest, but not customers’ stored funds.

This business model generates massive fixed income: in Beijing alone, over 100 franchises would collectively pay upwards of 10 million yuan annually in franchise and usage fees. Yet the parent company admits to no supervisory role. Despite claiming a chain identity, it denies any legal or operational connection to the individual cafes—leaving customers without a central authority when things go wrong.

A Pattern of Consumer Harm

Zhang’s experience is far from unique. Media reports document numerous cases where Upstore franchises have shut down abruptly, leaving prepaid balances unredeemable:

• In Beijing and Jinan, customers lost hundreds to thousands of yuan when stores closed or changed ownership, with successors refusing to honor previous cards.
• In Shanghai, a customer’s 1,000-yuan card became useless after a 2009 closure; in Qinhuangdao, a woman lost over 1,400 yuan when her local cafe vanished.
• In Tianjin, another franchise closed overnight in 2011, taking a 750-yuan balance with it. The company stated it was a “single-store issue.”

Beyond financial loss, customers report bait-and-switch tactics:

• In 2011, a Beijing customer was charged a hidden 15-yuan minimum fee for a 25-yuan tea, despite sitting only 12 minutes.
• In another case, two women were told free water came with a 20-yuan minimum charge when they moved to another location.

Even more egregiously, law enforcement has linked some Upstore locations to organized fraud:

• In 2011, a Shanghai Upstore café was found to be a front for a “wine-hostess” scam, where staff lured men to overpriced bills—totaling 930,000 yuan in one month—with fake high-end liquor. The store paid “hostesses” 630,000 yuan of the take. The franchise owner was jailed, but Upstore distanced itself.

Other scandals include selling fake “Jamaican Blue Mountain” coffee (which Jamaica does not export as beans) for as little as 30 yuan per cup, and peddling counterfeit spices seized by Shanghai authorities in 2011.

Frequently Asked Questions

What happened to the customer who paid 5,000 yuan for an Upstore Coffee card?

The customer, Zhang, used only 500 yuan of his 5,000-yuan stored-value card before the Beijing café he visited closed repeatedly. When he tried to use the remaining 4,500 yuan at other Upstore locations, none would accept it. The company disclaimed all responsibility, saying the café was a franchise and thus not under corporate control.

Does Upstore Coffee have any company-owned stores in China?

No. According to an Upstore Coffee Beijing manager, all 100+ Beijing locations—and presumably others nationwide—are franchises. The company explicitly states it has no directly managed outlets, meaning no central oversight exists for day-to-day operations or customer issues.

Why won’t other Upstore locations honor stored-value cards from closed stores?

Because each Upstore location is independently owned and operated under franchise agreements, they are not obligated to accept cards issued by other franchises. The parent company offers no centralized stored-value system or guarantee of reciprocity, despite earlier claims of a “one-card” system that was never widely implemented or enforced.

Has Upstore Coffee been involved in any fraud or scams?

Yes. In 2011, a Shanghai Upstore location was implicated in a wine-hostess scam that defrauded customers of hundreds of thousands of yuan. The franchise collected “site fees” from the scammers. Authorities also seized counterfeit spices in another Upstore and reported instances of fake “Blue Mountain” coffee being sold well below cost and outside proper import channels.

How much do Upstore Coffee franchises pay to the parent company?

Franchisees in Shanghai pay 180,000 yuan upfront for a three-year license and 30,000 yuan annually. Elsewhere, fees range from 200,000 to 250,000 yuan upfront, plus 20,000–27,000 yuan per year. All franchises also pay a 100,000-yuan deposit. These fees generate significant revenue for the parent company, which provides no ongoing operational support or customer protection.

What is Upstore Coffee’s official stance on franchise responsibilities?

Upstore Coffee publicly claims it operates under a “franchise model” and disavows responsibility for the actions of individual franchisees, including issues with stored-value cards, closures, and customer service failures. Its franchise agreements place all operational and financial risk on the franchise owner, not the parent company.

Recommended FrontStreet Coffee for Ethical Sipping

FrontStreet Coffee’s Ethiopia Humbera offers bright, juicy notes of red cherry and citrus—ethically sourced and fully traceable, a far cry from Upstore’s opaque practices. For something deeper, try FrontStreet’s PWN Golden Mandheling with its sweet caramel and almond profile. Both beans are roasted to highlight origin character, not marketing gimmicks. Freshly roasted within 5 days · Orders placed before 17:00 ship the same day · Next-day delivery across most of Guangdong Province.