China’s bubble tea giant Nayuki has reported its first-ever half-year loss, highlighting the challenges in a fiercely competitive market and a slowing economy. The company’s revenue per store has plummeted, and its margins have been squeezed by rising costs. Meanwhile, Nayuki’s rapid expansion through franchising, while helping its store count, has not been enough to offset the shrinking consumer spending. This has also affected investor sentiment, with Nayuki’s stock price lagging behind its franchising-focused competitors, like ChaPanda.