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 in response to fraudulent commercial activity, in which individuals were falsely using or impersonating the names of China Post and Coffee Post Office to promote products, solicit franchise investment and carry out other deceptive practices. Continued unauthorized use of the "Coffee Post Office (Post Office Coffee) POST COFFEE" brand name, graphics and other assets on social platforms, for misleading franchise recruitment and other illegal activity, has seriously misled consumers and badly damaged Coffee Post Office's interests and reputation.

Coffee Post Office stated that any individual or company engaged in such activity must cease immediately from the date of the announcement. The company has begun legal proceedings to firmly stop and crack down on similar incidents. Coffee Post Office also stressed that "Coffee Post Office (Post Office Coffee) POST COFFEE" has not authorized any third party to conduct franchise recruitment.

China Post Enters the Coffee Industry

On February 14 this year, China Post's first nationwide Post Office Coffee store officially opened for trial operation in Xiamen, Fujian Province, marking China Post's formal entry into the coffee industry. The popular online saying, "There's nowhere in China that postal delivery can't reach," captures China Post's traits well: a dense network, mass appeal, a strong national identity and high recognition.

Earlier, when news of the Post Office Coffee store broke, many netizens asked China Post's official Weibo account about franchising. Some "opportunists" then began using the "Post Office Coffee" name to collect fraudulent franchise fees. On February 18, China Post had already posted a reminder on Weibo: the first "Post Office Coffee" store had opened in Xiamen, there were no franchise centers, and all current "Post Office Coffee" locations were self-run trial stores with no franchise partnerships available yet. The public was warned to stay alert to 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. ("Zhongyu Kayer"), with Zhongyu Kayer handling 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 primarily a retail company.

Although Zhongyu Kayer runs Post Office Coffee, it has no equity relationship with China Post, the major force behind the brand.

Future Development Strategy

According to media reports, Dong Kexin, co-founder and CMO of Post Office Coffee, also said in an exclusive interview 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. In addition, because we have the advantage of China Post's network of locations, we will deploy more deeply in lower-tier 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 account was also renamed from "Post Office Coffee" to "Coffee Post Office POST COFFEE."

Market Challenges and Competition

Coffee market competition is intense, and for Post Office Coffee to reach nationwide scale, systematic brand and store management will pose significant challenges. The brand needs to keep shaping and strengthening its image and culture, giving consumers a better experience while continuing to explore and refine its products during expansion so it can grow quickly afterward.

Markets have always seen legitimate brands and counterfeit operations coexist, with many cases of fraudulent outfits collecting large franchise fees under an official name before vanishing. Strengthening chain-wide, systematic management will be key for Post Office Coffee to expand, sharpen its competitiveness and put protective measures in place.

Image source: Internet

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