According to reports, HEYTEA stores have decreased by more than 600 within a year, and the franchise was halted at the beginning of this year to exit the competition

According to reports citing data from the Extreme Sea brand monitoring, the total number of HEYTEA stores nationwide has decreased from 4,610 in October last year to 3,930 in October this year, resulting in a net reduction of 680 stores within a year.

The report cites sources close to HEYTEA indicating that the company has determined to adjust its store development direction since the end of last year, with scaling back being one of the specific measures. It is also believed that the current overall scale of the new tea beverage industry in China is in a state of excess, and HEYTEA proactively halted franchise applications at the beginning of the year, aiming to exit this "involution game" scale. Currently, HEYTEA's focus is not on store expansion but rather on the products themselves.

As early as February this year, HEYTEA emphasized in an internal letter that the "digital game" in the new tea beverage industry has come to an end, and meaningless price, revenue, and scale involution are severely depleting users' love for new tea beverages. At the same time, HEYTEA stated its refusal to engage in meaningless store scale involution and temporarily stopped accepting partnership applications.

In August this year, HEYTEA reported personnel changes, with former brand vice president Zi Yu leaving at the end of July, and Wang Xiaodong, the CEO of the South Korean high-end fashion eyewear brand GENTLE MONSTER, taking over the position.

Additionally, according to the "2024 HEYTEA Annual Report" released earlier this year, the average performance of newly opened stores in the second half of last year significantly exceeded that of the first half, showing a continuous trend of overall performance greatly surpassing the industry market. HEYTEA's membership has surpassed 150 million, with an annual increase of 50 million, and it has opened over 70 stores in seven overseas countries and regions, including Singapore, the UK, Canada, and Hong Kong and Macau