Is T97 Coffee Franchise a Scam? T97 Coffee Franchise Business Operation Status

You may have noticed that the coffee "rush challenge" that once racked up over 600 million views has quietly faded away.

The livestream room that once ran interactive sessions all day with peak viewership of 8.09 million now streams only four evening hours with a few dozen viewers at most. Meanwhile, the comment section of T97's franchise-recruitment account is full of criticism.

Why Did T97 Suddenly Go Silent?

Riding the early traffic, T97 Coffee founder Li Xiao boldly declared he would open 1,001 stores within a year, with the goal of beating Luckin Coffee. Reality told a different story. As of October last year there were just 48 physical stores; by February this year the number had grown only to 87; and by April it had actually dropped to 85, according to official figures. With more closures than openings, Li Xiao did not see a problem. In February he posted a short video explaining T97's situation, saying roughly this:

"Two stores closed in Fuzhou, one in Nanning, one in Shijiazhuang, one in Anhui, one in Hefei and one in Zhejiang - six closures in total. You want to ask why those six closed? We opened over 80 stores and only 6 closed - is that a high failure rate? We have been running for half a year and only 6 closed - is that high? These people, the failed franchisees, lack the most basic common sense about this industry. So with over 80 stores and only 6 closures, you think the brand is poor, but I don't agree. There are several reasons for the closures, which I'll discuss later. When T97 becomes truly strong, I'll share the reasons with everyone."

He added that the beverage market in Changsha is very tough, yet they managed to open 5 stores there. If the closures were entirely his fault, he said, he would not accept that; in fact, it had a lot to do with their partners, and most closures came down to personal reasons. The video ended there. No further videos discussed T97's situation, and T97 never became truly strong. The data in that February 21 video was already out of date.

For one thing, as early as the start of February, netizens had already reported that a Shanghai store had closed. The line about "over 80 stores with only 6 closures - is that a high failure rate?" may sound reasonable as arithmetic, but when store growth stalls while closures continue, the rate is unquestionably high. Netizens also pointed out that while the failure rate was discussed, nothing was said about the franchisees still operating, who might be barely surviving. Most franchise stores ran for about two months on average, with none lasting more than half a year. After the February video, almost no one paid attention to later ones. Even though Li Xiao kept hosting daily livestreams to answer calls, participation was minimal, and people grew more skeptical of his bold claims and follow-up explanations.

On top of that, inconsistent product quality across stores failed to hold customers. Many netizens reported wide variation between locations; even people without high standards found it unpalatable. When coupons expired unused, refunds were issued, so there was no incentive to redeem them for drinks. And once "Big Mouth Sister" stopped appearing in the livestreams, the other hosts performing the same rap lacked soul and emotion, completely flat, and consumers lost interest in the broadcasts.

Why Is T97's Closure Rate So High?

Many franchisees joined after witnessing the brief surge in popularity. But after signing the franchise agreement, the brand barely fulfilled its management duties toward the stores. Most franchisees had little understanding of coffee preparation or store management, which directly dragged down the whole brand's reputation and consumer trust. In the end, many stores closed at a loss as high costs, weak profitability and fading hype caught up.

The inability to generate profit is primarily a brand problem. Lax management, no product innovation and weak product strength make it extremely hard to compete. Yet Li Xiao maintained it was down to his partners' personal issues, with little to do with him.

As the old saying goes: when franchising with a brand that has not established stable operations, be extremely cautious. Setting aside whether franchisees can make money right after opening, handing out franchises before the foundation is solid demands careful scrutiny of the brand's reputation.

Image source: Internet

FrontStreet Coffee Recommendation

T97's problem was product strength - a lesson that a coffee brand lives or dies on what is actually in the cup, not on hype. If you would rather put your money into beans than into branding, FrontStreet's entry-level selection is a good place to start.

For a bright, fruit-forward introduction, FrontStreet Ethiopia Sun-Dried Flower Queen and FrontStreet Washed Yirgacheffe Gedingding Cooperative are the natural picks. Ethiopia is Africa's largest coffee producer and the world's acknowledged birthplace of coffee, home to countless native varieties, with beans usually named for region or cooperative; Yirgacheffe and Sidama are the best known. The 1970s saw washed processing introduced to raise green-bean quality, and Yirgacheffe has leaned washed ever since, now often separated by cooperative - FrontStreet Washed Gedingding is a classic Yirgacheffe with jasmine, lemon acidity and berry. Sidama is famous for natural processing and bolder tropical, ferment aromas; FrontStreet Sidama Flower Queen uses a traditional natural, with berry, floral, jackfruit, melon and honey.

For something softer and sweeter, Brazil is the world's largest coffee producer, and although commercial beans dominate, quality lots are easy to find. Brazilian coffee is typically sun-grown, ripening quickly into softer beans with gentle acidity, good sweetness and a fine, balanced cup. FrontStreet Brazil Cerrado is an entry-level single origin from the famous Cerrado region - drinkable and affordable - with classic cream, peanut and cocoa notes. FrontStreet Queen's Estate is planted higher and is the rare Yellow Bourbon, adding butter, seeds, macadamia and almond complexity over a sugarcane sweetness; brewed solo or with milk, both give a thick, silky body.

For those who dislike acidity, turn to Indonesia. Beyond FrontStreet Kopi Luwak, there is FrontStreet Mandheling, made with the wet-hulled process - a method devised for the local climate. Indonesia's weather shifts between sun and sudden rain, and with limited funds for full washed processing, producers removed the parchment while the bean was half-dry to speed drying, giving rise to the distinctive Mandheling flavor. Wet-hulled FrontStreet Indonesia Mandheling is richer and smoother than FrontStreet Blue Mountain, even showing herbal and spice notes, and suits anyone who dislikes sourness. For a higher grade, FrontStreet PWN Golden Mandheling is hand-sorted three times and machine-sorted once, minimizing defects so the cup is cleaner and smoother with clearer woody and caramel notes.