Shanghai Yicha Yishui Catering Co., Ltd (hereinafter referred to as "Yicha Yishui") has paid the price again for its mismanagement. on May 24, 2011, the Shanghai Second Intermediate People's Court awarded Yicha Yishui 700,000 yuan in damages to its franchisee, Shanghai Jinhua Catering Co. (hereinafter referred to as "Jinhua") to pay compensation of 700,000 RMB. A tea a sitting company lawyer Bai Xiaofu said, litigation is mainly due to the 2008 financial crisis in the franchise operation has produced a large loss, the franchisee is not willing to losses want to take advantage of this to recover their losses and filed a lawsuit.

As a result of the audit found the existence of irregular invoices in the franchise, into the Chinese company that a tea a sitting company there is a deliberate hollowing out of the suspicion of the franchise, but the court found that the irregular invoices only exposed the franchise internal management control deficiencies, a tea a sitting company management fault, so the above judgment. The plaintiff into the Chinese company lawyer Hu Jiongming said the judgment is not convinced, will continue to appeal. Capital predicament: 7 years of continuous losses facing litigation

Shanghai Hongkou Industrial and Commercial Bureau public data show that in 2005, a tea and a seat in the main business income successfully exceeded the 100 million yuan mark, the company's main business income of 101 million yuan that year, but even in the case of the main business income of more than 100 million yuan, the company's profit is still a negative number. Compared with the past four years, however, the year's loss was significantly better, and in 2005, a tea and a sitting loss of 770,400 yuan.

By 2006, the board of directors of One Tea One Sit decided to increase the company's registered capital from $7 million to $11 million. That year, the company's revenue from main business was as high as 154 million yuan, but the loss also further increased to 7,931,600 yuan.

In 2007, as the popularity of One Tea One Sit increased, the brand's outlets began to spring up in Shanghai. The restaurant's iconic green logo can be seen in many of Shanghai's busy commercial and office areas.

While its popularity has increased, it is still difficult to stop the trend of loss of one tea and one sitting. Business information shows that in 2007, the company's main business income of nearly 250 million yuan, but its loss figures also further expanded to 38.3575 million yuan.

In 2008, the main business income of a tea and a seat again hit a new high of 332 million yuan, and its loss amounted to 16,029,200 yuan.