# New-style Tea

Bittersweet Aftertaste: CHAGEE Confronts the Limits of Hyper-Expansion

Despite reporting over 31 billion RMB in GMV for 2025, CHAGEE is facing a crisis as franchisee profitability declines due to over-saturation. The company is responding by pivoting its business model toward revenue-sharing and accelerating product innovation to sustain its market position.