Islamabad:
The rapid expansion of China-origin beverage and dessert brand WeDrink in Pakistan has sparked growing concern among business experts and potential investors, as questions emerge around its franchise structure, sustainability, and long-term profitability.
Over the past year, WeDrink has gained significant visibility in Pakistan’s food and beverage sector. Promotional content shared widely on social media platforms claims that the brand has signed more than 100 franchise agreements, with over 40 outlets reportedly operational across major cities such as Islamabad, Lahore, and Karachi. The expansion has attracted interest from individuals seeking fast-return business opportunities in the café and dessert segment.
However, industry observers caution that Pakistan’s current economic landscape presents serious challenges for new food and beverage ventures. Rising commercial rents, escalating electricity and gas tariffs, inflationary pressures, and declining consumer spending power have significantly reduced the margin for error in this highly competitive sector.
Franchise Cost Structure Draws Scrutiny
Business analysts reviewing publicly available franchise material indicate that WeDrink’s model appears heavily weighted toward upfront and recurring fees. In addition to standard franchise onboarding costs, the structure reportedly includes charges related to training, store audits, inspections, shop design compliance, and operational approvals.
Experts warn that franchise systems dependent on substantial upfront payments may expose investors to higher financial risk, particularly if profitability relies more on franchise sales than on long-term outlet performance. In markets where consumer demand is volatile, such models can leave franchise holders struggling to recover their initial investment.
Aggressive Marketing Raises Red Flags
Another factor drawing attention is the brand’s aggressive franchising promotions. Limited-time offers, discounted franchise packages, and urgent sign-up campaigns have been frequently observed on digital platforms. While promotional activity is common in franchise marketing, analysts note that persistent pressure to close deals quickly can be a warning signal.
According to market experts, rapid outlet expansion without proven demand density increases the risk of oversaturation, leading to reduced sales per outlet and operational stress for franchisees.
Public Feedback and Business Sustainability
Industry insiders stress that long-term success in the beverage and dessert industry depends on consistent product quality, pricing alignment with local purchasing power, and strong repeat customer traffic. Discussions in local food forums and online review communities have shown mixed consumer feedback regarding value and overall experience at certain outlets.
Such feedback has fueled debate over whether all franchise locations can maintain sustainable sales levels once initial launch promotions fade.
Investors Urged to Conduct Thorough Due Diligence
Financial and legal professionals strongly advise potential investors to carry out independent verification before committing to any franchise agreement. Experts recommend that prospective franchise holders should:
request verified monthly sales data and realistic profit projections,
confirm company registration and ownership details in Pakistan,
verify trademark registration and usage rights,
review exit clauses and refund policies in franchise contracts,
and speak directly with existing franchise owners across multiple cities.
Analysts emphasize that relying solely on promotional claims can result in significant financial losses, particularly in a challenging economic environment.
Calls for Greater Transparency
As franchising continues to attract small and mid-scale investors across Pakistan, experts argue that brands expanding at speed have a responsibility to provide greater transparency. Clear disclosure of unit economics, average outlet performance, and operational risks can help protect investors and support healthier market growth.
Flare Magazine will continue to follow developments related to WeDrink Pakistan and has sought an official response from the company regarding concerns about franchise transparency, investment risk, and profitability claims.
