Core Viewpoint - The brand "爷爷不泡茶" has rapidly expanded its store network, aiming to reach 4,500 stores by the end of 2024, with a current total of 2,410 stores as of October 8, 2025, reflecting a 6.7% increase from the previous year [2][3][5]. Expansion Strategy - The brand plans to add at least 2,090 new stores in the remaining two months of the year, which requires a daily opening rate of 38 stores, significantly higher than the current rate of 5 stores per day [5]. - As of October 8, 2025, the brand has opened 172 new stores in 107 cities, with 43 of these in new first-tier cities, indicating a strategic focus on urban expansion [3][5]. Store Operations - The majority of stores operate from 10:00 AM to 10:00 PM, with a notable number of campus stores adjusting hours to cater to student schedules, enhancing consumer engagement [6][8]. - The brand has 83 24-hour stores, primarily located in new first-tier cities, indicating a focus on high-traffic areas [8][10]. Geographic Distribution - The brand's stores are concentrated in central, eastern, and southern China, with significant presence in Hubei, Jiangsu, and Guangdong provinces [16][19][21]. - The strategy includes a "province capital first" approach, with major cities like Hangzhou and Nanjing having a disproportionately high number of stores compared to other cities in their respective provinces [32][35]. Market Penetration - The brand has established a presence in 1,401 stores across first, second, and new first-tier cities, which constitutes 58.13% of its total stores, showing a strong foothold in economically robust areas [29]. - The brand has also begun penetrating lower-tier cities, with 1,009 stores in third-tier and below cities, indicating a strategy to tap into emerging markets [35]. Commercial Partnerships - The brand has a significant presence in shopping centers, with 1,116 stores located in such venues, which account for 46.31% of its total stores, enhancing brand visibility and customer traffic [37][39]. - The brand's partnership with Wanda Plaza is particularly noteworthy, with 251 stores, representing 10.4% of its total, indicating a strong alignment with high-traffic commercial properties [39][41]. Special Location Strategy - The brand has opened 132 special location stores, focusing on high-frequency consumer areas such as campuses and transportation hubs, with 97 of these being campus stores [45][47]. - The transportation hub stores, primarily located in metro stations, reflect the brand's strategy to enhance visibility in high-traffic areas [47]. Financial Performance - The brand's reliance on aggressive promotional strategies has led to a lower revenue realization rate of approximately 60%, compared to competitors who maintain higher rates [49]. - As the tea-drinking season slows, the brand may need to increase marketing efforts to sustain customer traffic, which could further impact profitability [49][50].

Core Insights - The tea brand "Grandpa Does Not Brew Tea" has shown remarkable growth, ranking in the top 20 of the 2025 Hurun China New Tea Drink Brand List and recognized as the fastest-growing brand by Shangpu Consulting based on sales and store count [2][4] - The brand aims to reach a minimum of 4,500 stores by 2025, with a target of opening 2,100 new stores this year, averaging 17 openings per day [4] Expansion and Store Performance - The brand has rapidly expanded, adding nearly 1,800 stores in 2024, surpassing 2,000 total stores, and exceeding 2,400 by September 2025 [4] - Despite high opening numbers, many stores face operational challenges, with initial strong performance declining over time [5][6] - For example, a store in Jiangxi saw its GMV peak at 210,000 yuan within two months but dropped to around 65,000 yuan during the off-season, leading to potential profitability issues [6][10] Financial Challenges - The brand's franchisees are experiencing significant pressure due to low revenue realization rates and high operational costs [10][12] - The average realization rate is around 60%, with some stores dropping to 55%, making it difficult for franchisees to achieve profitability compared to competitors [12] - Initial investment costs for a 30-square-meter store are approximately 330,000 yuan, but actual costs often exceed 500,000 yuan due to rising rental and operational expenses [12][14] Market Saturation and Competition - Many stores are located in highly saturated markets, with at least 15 competing tea shops within a 1-kilometer radius, leading to decreased customer traffic once initial excitement fades [7][15] - The brand's product offerings, while differentiated by the "Oriental Fragrant Tea" concept, still compete in a crowded market with similar products from established brands [15][17] Franchisee Quality and Management Issues - The low entry barrier for franchisees has attracted a diverse range of investors, resulting in varying levels of operational expertise and financial stability among franchisees [17][18] - The rapid expansion has strained supply chain and management capabilities, with many stores spread thinly across cities, complicating logistics and inventory management [18][19] Future Outlook - The brand is seeking to improve its profitability, projecting a net profit of 200 million yuan in 2025, while also facing potential legal risks related to trademark registration [19][20] - To transition from a "viral" brand to a sustainable one, the company must focus on building a robust product repurchase system, stable single-store profitability, and an efficient supply chain [20][21]

Group 1 - The event "2025 National Integrity and Business Promotion Month" will be launched on September 22 in Xianning, co-hosted by the Ministry of Commerce and Hubei Provincial Government, with the theme "Honesty and Trustworthiness, Benefiting Enterprises and People" [1] - National key business associations will jointly issue an initiative to promote integrity in business and the construction of a social credit system, aiming to foster industry self-discipline and a culture of honest operations [1] - The "Buy Hubei" autumn consumption promotion event will be held alongside the launch, featuring a themed market focused on Hubei's specialty products [1] Group 2 - The themed market will consist of six major sections: revitalization of time-honored brands, landmark boutique products, healthy consumption, financial benefits for the public, bulk consumption, and a cultural feast [1] - The revitalization section will showcase century-old brands from Hubei, highlighting their integrity and innovative vitality [1] - The landmark boutique section will feature geographical indication products like Chibi Qingtian tea and Xianning osmanthus, showcasing the unique charm of Jingchu culture [1] - The healthy consumption section will focus on new experiences related to healthy living products [1] - The financial benefits section will include various financial institutions offering consumer loans and other financial products aimed at benefiting the public [1] - The bulk consumption section will include exhibitions and sales of large consumer goods such as automobiles [1] - The cultural feast section will combine local cultural performances, allowing consumers to experience cultural heritage while shopping [1]