Summary of the Key Points
Niu Meili, having plenty of free time in 2020 and wanting to generate "passive income," impulsively decided to join a well-known milk tea franchise in Changsha (investing 580,000 yuan). However, she faced a series of unexpected problems, including chaotic employee management, losses from delivery services, exploitation by the brand, and changes in the market. Within half a year, she had lost all her savings and even borrowed 30,000 yuan to pay her employees' salaries. She eventually sold her franchise at a loss of nearly 200,000 yuan. Her experience highlights that joining a milk tea franchise seems simple but is actually full of pitfalls: impulsive decisions, operational details, brand tactics, and market competition can all lead to total failure. In the end, she returned to her teaching career, realizing that "striving hard may not be suitable for everyone."
Analysis 1: Impulsive Decisions – The Overlooked "Fatal Details"
Niu Meili's decision to join the franchise was driven by a combination of boredom, easy access to money, and the influence of success cults:
- Misconception about Money: Earning 50,000 yuan per month from art exam training gave her no real sense of how much it would take to own a franchise.
- Traps of Success Cults: She wanted to generate passive income and even believed in fortune-telling that said she would be lucky at age 40, feeling the need to "give fate a chance."
- Lack of Thorough Investigation: She merely counted the number of people under a tree and asked employees about business performance without obtaining the previous owner's financial records.
- Hasty Partnerships: She trusted her partner from a homestay business and signed the contract without considering the former owner's warnings about the manager's misbehavior.
These assumptions laid the groundwork for her downfall, similar to buying something without reading the instructions and relying solely on the seller's promises, leading to inevitable mistakes.
Analysis 2: Daily Operations – More Exhausting than Making Milk Tea
Running a milk tea franchise is far more demanding than just making tea; it involves dealing with numerous issues:
- Employee Problems: A former employee left after having 377 yuan deducted from her salary; a newly hired employee disappeared after being paid in advance; employees were verbally abused by delivery drivers, and the trained deputy manager quit after only 10 months to pursue higher education.
- Physical and Mental Strain: Niu Meili had to wash boxes and pick out gum residues by hand, which left her hands rough and painful. She even offered expensive meals to employees only to be called a fool behind their backs. arguments with drivers made her feel even more frustrated.
In her own words: "I wouldn't do this for 20,000 or 30,000 yuan a month; dealing with these people all the time is too exhausting."
Analysis 3: Franchise Pitfalls – Brands That Only Care About Money
The brand provider was more of a burden than a support system:
- High Costs: All supplies had to be purchased from the brand platform, at higher prices. Old ingredients (like matcha powder) had to be used up within 10 days or discarded.
- Penalty Systems: The brand imposed strict penalties for minor issues, such as a single bad grape in a bunch or late delivery of taro balls.
- Lack of Support: When business was slow, the brand suggested increasing delivery orders but didn't provide practical solutions.
Niu Meili criticized: "The brand only exists to collect money and impose fines."
Analysis 4: A Harsh Market – Declining In-person Sales and Fierce Competition
External factors severely impacted her business:
- Decline in Customers: After the government's education policies, fewer students attended training classes, and fewer tourists visited Changsha during the pandemic.
- Losses from Delivery: In-person sales were profitable at 15 yuan per cup, but delivery orders resulted in losses after discounts.
- Fierce Competition: A new franchise opened nearby (with a rent of 35,000 yuan), and Niu Meili's advice was ignored, leading to mutual failure.
By December, she had lost all her savings and borrowed money to pay her employees. She returned to teaching, realizing that the "milk tea dream" was a costly mistake.
Analysis 5: Reflection – From a "Milk Tea Dream" to Self-Awareness
Niu Meili's experience serves as a warning to those considering franchising:
- Location is Crucial: The success of a franchise depends on in-person customer traffic, which her business lacked due to the decline in related industries.
- Be Cautious When Franchising: Check the brand's reputation, material costs, and penalty policies; don't believe promises of passive income.
- Find What Suits You Best: Teaching brought her joy and support, contrasting sharply with the hardships of running a franchise.
In conclusion, she concluded: "The simplest solution is not to franchise at all. 300,000 yuan could be used for a trip, creating memories that would be worth more than any losses."
This story illustrates that joining a milk tea franchise is not about easy money but about facing numerous challenges. Before starting a business, ask yourself if you can handle the daily hardships and potential brand-imposed restrictions. If not, it might be better to stick with your current job.