Introduction:Recently, the official Xiaohongshu mini-program of Heytea in the U.S. showed a sharp reduction in the number of listed stores—dropping by nearly 20, from the previously reported 42 planned locations as of late September to only 15 stores across Los Angeles, New York, and Bellevue. Are these simply unfinished stores temporarily hidden, or has there been a change in franchise cooperation? This article delves into data changes, market conditions, and consumer observations to bring you an in-depth look at the current status and potential impact of overseas expansion.
Many consumers have recently noticed that the store list on Heytea’s official U.S. mini-program has significantly shrunk, with around 20 stores disappearing within just one month. Going back to the end of September, there were reports that Heytea planned to open 42 branches in 13 U.S. cities, and the mini-program also displayed store information for cities such as Boston and San Francisco. However, by the end of October, only 15 stores in Los Angeles, New York, and Bellevue remained visible on the app, leaving many users puzzled.
According to screenshots provided by users, at the end of September, the Los Angeles section of the mini-program showed at least six stores, three of which were specifically marked as “opening soon.” But by the end of October, those three stores had vanished, leaving only three currently operating stores still listed. Moreover, cities previously listed as “coming soon,” such as Boston and San Francisco, can no longer be found in the mini-program.
In response to this phenomenon, some observers believe it may be a strategic move by the brand to hide stores that are not yet fully renovated or have not obtained all necessary operational licenses, in order to avoid misleading consumers who might have overly high expectations. After all, compared to the Chinese market, the store-opening process in the U.S. is generally more complicated and time-consuming. Typically, a tea beverage shop in China takes about one and a half months from renovation to official opening, but in the U.S., due to various regulations, reviews, and permit procedures, it often takes several months before a new store can officially welcome customers. If issues arise during renovation inspections or with permits, the opening may be further delayed.
Therefore, some industry insiders speculate that Heytea may have chosen to temporarily remove these preparatory stores from the mini-program to prevent consumers from continually asking, “Why hasn’t the store opened yet?” They plan to relist them once they are officially operational, in order to maintain brand image and consumer trust.
However, another viewpoint suggests that the sudden drop in store numbers may be related to variables in the brand’s cooperation with franchisees. It is understood that Heytea franchisees in the U.S. need to pay for items including per-store franchise fees, initial service fees, and deposits, in addition to covering expenses such as rent, utilities, renovation, staffing, and raw materials—the overall upfront investment is no small sum. Against the backdrop of global tea beverage brands competing to enter the U.S. market, some popular commercial districts even see multiple tea beverage brands opening stores simultaneously, creating considerable competitive pressure.
Some local U.S. consumers have reported that with an increasing number of tea beverage options on the market, their frequency of purchasing from Heytea is no longer as high as when the brand first entered. Some stores are also experiencing significantly lower foot traffic than expected, and the initial excitement following opening has gradually faded. Given this market feedback, some franchisees may have re-evaluated actual operational conditions and chosen to adjust strategies or even exit the partnership, resulting in planned stores not opening as scheduled.
However, many local U.S. users have shared on social platforms that there are still Heytea stores under renovation or already completed in their vicinity. They believe the reduction in the number of stores shown on the mini-program may only be temporary and urge other consumers not to worry too much. They speculate that Heytea might announce the simultaneous opening of multiple stores in the near future, bringing a pleasant surprise to the market.
Based on various observations, although the mini-program currently displays specific information for only 15 U.S. stores, there are still many stores in the preparation or near-launch stages. Whether there will be further expansion in the future, and which cities will become the next focus areas, are all worth continued attention. For readers interested in investing in or keeping an eye on the overseas tea beverage market, understanding the reasons behind these changes and the market responses will help provide a more comprehensive view of brand development trends and the actual conditions of regional markets.
The above content is compiled by CoffeeHunters, a coffee news website.
