Authorized Franchise Recruitment?! Coffee Post Office Responds

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Coffee Post Office Responds to Franchise Scams

On October 27, Coffee Post Office issued a statement responding to fraudulent commercial activities where individuals have been falsely using or impersonating China Post and Coffee Post Office names to promote products, solicit franchise investments, and engage in other deceptive business practices. Continuous unauthorized use and appropriation of the "Coffee Post Office (Post Office Coffee) POST COFFEE" brand name, graphics, and other assets on social media platforms for misleading franchise recruitment and other illegal activities has seriously misled consumers and severely damaged Coffee Post Office's interests and reputation.

Coffee Post Office stated that individuals or companies engaging in the above-mentioned issues must immediately cease all such activities from the date of this announcement. The company has initiated legal proceedings to firmly stop and severely combat similar incidents. Meanwhile, Coffee Post Office emphasized that "Coffee Post Office (Post Office Coffee) POST COFFEE" has not authorized any third party to conduct franchise recruitment activities.

China Post's Entry into Coffee Industry

On February 14 of this year, China Post's first nationwide Post Office Coffee store officially opened for trial operations in Xiamen, Fujian Province, marking China Post's official entry into the coffee industry. The popular online saying, "There's no place in China where postal delivery can't reach," perfectly embodies China Post's characteristics: dense network, mass appeal, strong national identity, and high recognition.

Previously, when news of the Post Office Coffee store opening broke, many netizens consulted China Post's official Weibo account about franchise matters. However, some "opportunistic individuals" began using the "Post Office Coffee" name as franchise promoters to collect fraudulent franchise fees. On February 18, China Post had already issued a reminder on Weibo stating that the first "Post Office Coffee" store had opened in Xiamen, there were no franchise centers, and currently all "Post Office Coffee" locations are operating as self-run trial stores, with no franchise partnerships available yet, warning the public to be vigilant against scams.

Corporate Structure and Brand Evolution

According to Tianyancha (a business information platform), Post Office Coffee is a collaboration between China Post and Shanghai Zhongyu Kayer Management Consulting Co., Ltd. (hereinafter referred to as "Zhongyu Kayer"), with Zhongyu Kayer responsible for Post Office Coffee's operations. Public information shows that Zhongyu Kayer was established in September 2021 and operates businesses including food sales, restaurant management, and apparel wholesale, making it a company primarily engaged in retail.

However, although Zhongyu Kayer handles Post Office Coffee's operations, it has no equity relationship with China Post, the major force behind Post Office Coffee.

Future Development Strategy

According to media reports, Dong Kexin, co-founder and CMO of Post Office Coffee, also stated in an exclusive interview with reporters that Zhongyu Kayer has established a long-term strategic partnership with China Post, but it is not a subordinate relationship. "Post Office Coffee will open more densely distributed stores in key cities in the future. Additionally, because we have the advantage of China Post's network locations, we will conduct deeper deployments in sinking markets," Dong Kexin said.

In early August 2022, Shanghai Zhongyu Kayer Management Consulting Co., Ltd. was renamed "Shanghai Zhongyu Kayer Coffee Co., Ltd." On September 19, the company's operating official account was also renamed from "Post Office Coffee" to "Coffee Post Office POST COFFEE."

Market Challenges and Competition

The coffee market competition is intense, and for Post Office Coffee to achieve nationwide scale development, systematic brand and store management will pose significant challenges. Post Office Coffee needs to continue shaping and strengthening its brand image and culture to provide consumers with better experiences, while continuously exploring and optimizing its products during expansion to facilitate subsequent rapid growth.

Market phenomena where legitimate brands and counterfeit operations coexist have always been common, with numerous cases of fraudulent operations collecting large franchise fees under official brand names before disappearing. Strengthening chain-based and systematic management will be key for Post Office Coffee to expand its presence, enhance brand competitiveness, and implement protective measures to achieve better results.

Image source: Internet

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