Introduction:Rumors that domestic coffee chain Manner plans to open franchising by the end of March this year have drawn industry attention. As one of the top five largest coffee chains in China by number of stores, Manner has long adhered to a direct-operated model. If this move becomes reality, it would mark a significant shift in its development strategy. This article provides an in-depth analysis of internal research details, the possibilities and challenges of franchising, as well as the brand’s adaptability in lower-tier markets, offering unique insights for readers following developments in the coffee industry.
Recently, market rumors have emerged that Manner, a well-known domestic coffee chain, may open franchising by the end of March this year. The news has been widely circulated among coffee industry professionals. According to several insiders, the brand has launched an internal survey to gauge interest in potential franchising. CEO Jin Binbin mentioned the matter within employee groups and distributed related questionnaires. Although the official response remains that the matter is still under internal evaluation and no franchising plan has been finalized, some employees indicated that a franchising policy could be officially launched in mid-to-late March.
▲
As the fifth-largest coffee chain in China by number of stores, Manner has long insisted on operating through direct company-owned outlets. If the brand does pivot to franchising, the commercial rationale behind such a move and its adaptability to lower-tier markets have become focal points of industry attention.
According to informed sources, Manner recently conducted a survey among employees regarding their interest in franchising. The questionnaire mainly focused on whether employees would be interested in participating in a potential future franchising program. The survey was reportedly led by CEO Jin Binbin. Although he shared the questionnaire in employee group chats, those groups were subsequently disbanded. Another employee noted that so far, the company has not officially issued any notice about the start of franchising, with only the earlier questionnaire serving as a reference. Specific developments still need to be monitored via the brand’s official channels.
Notably, employees revealed that Manner did not specify franchise fees in the questionnaire. Instead, it focused on employees’ own interest in franchising, preferred locations for opening new stores, and expectations regarding franchise costs. Some employees mentioned that because areas already hosting Manner stores are difficult to further expand into, they are considering looking for opportunities in other high-footfall locations, but remain cautious about entering third- and fourth-tier cities. In addition, some employees said the brand asked if they would be willing to open shops in their hometowns, but most expressed a lack of confidence in operating outside first-tier markets and believe it will depend on future franchising conditions.
Looking at the brand’s expansion pace, Manner had surpassed 1,200 direct-operated stores by the end of 2023, and had set a target of reaching 2,000 stores by 2024. However, according to official summary data from the end of 2024, the brand opened a total of 666 new stores that year and stated that “the 2,000th store is on the horizon.” Excluding closed stores, the brand’s store count by the end of 2024 likely reached nearly 1,900, but according to third-party platform data—including from Zhaomen Canyan and Jihai Brand Monitoring—as of February 12, 2025, Manner’s operating store counts were 1,712 and 1,763 respectively, showing some gap from the original target.
Looking across the domestic coffee chain market, Manner currently ranks as the fifth-largest brand by number of stores, with the top four being Luckin, Cotti, Starbucks, and Xingyungka. Notably, among the top five brands, only Manner and Starbucks still adhere to a direct-operated model. Starbucks was also reported last year to be exploring new partnership models, including seeking strategic partners, which was interpreted by the outside world as possibly moving toward a franchising direction. Against this backdrop, Manner’s consideration of opening franchising is not seen as surprising by industry observers.
Industry experts analyze that Manner’s long-standing commitment to a direct-operated model is mainly related to its previously ample funding. The brand has undergone multiple rounds of financing, with single-store valuations once reaching tens of millions of yuan, so there was no urgent need to open franchising from a funding perspective. However, if the brand shifts to a franchising model in the future, it may be related to adjustments in overall development strategy or changes in funding needs. That said, some observations suggest that the franchising model is usually more suited to lower-tier cities and county-level markets, while Manner’s brand positioning and product character are more tailored to consumers in first- and second-tier cities. Therefore, whether it can gain recognition from local consumers in lower-tier markets remains uncertain.
Overall, if Manner officially announces the opening of franchising by the end of March, it will represent a major transformation in its business model. Whether the brand can successfully expand into more diverse markets while maintaining brand consistency and quality control will be a key focus of ongoing industry attention.
The above content is compiled by CoffeeHunters, a coffee news website.
