Overview
- The company’s memo extends deferred or reduced pay to city managers, coaching teams, store managers, service coaches, floor managers, department heads, and delivery and kitchen supervisors.
- Employees told media that some store managers were asked to sign 30% pay cuts with no promise of back pay.
- Screenshots circulating online indicate certain staff were placed on leave from March 3 through August while receiving only the local minimum wage.
- The notice states employees who resign before 11 p.m. on March 6 will receive normal wages, which many interpret as pressure to quit to avoid severance obligations.
- The actions follow losses the founder estimated at more than RMB 600 million since September 2025 and come despite a recent Series A, conflicting with his January pledge that departing workers would be fully paid.