The stone of other mountains can be used to attack jade | Man Coffee's unique concept of store location

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At present, the current situation that domestic coffee shops are generally facing is that it is difficult to make a profit with high rental costs, which is completely different from the fact that ManCoffee finds a different way to choose the store in the cold zone. On the shop location PPT of an internal reference for diffuse coffee, the last page reads: "it is not necessary to choose the shop on the first main road. Considering the rent, we can open it on the second and third trunk roads."

Nowadays, the survival situation of a large number of coffee shops in the Chinese market is worrying. In Xiamen, the city with the highest coffee shop density in China, there are more than 2000 coffee shops, of which less than 30% are truly profitable, while the coffee shop market in Hangzhou has a "343" model: 30% profit, 40% flat, and 30% loss. Qin Gang, founder of Banpo Coffee, said that the emergence of this situation has something to do with the high rental costs in first-and second-tier cities. In general, coffee shops are concentrated in busy areas with high passenger flow, and the cost of opening a shop in these areas can be imagined. Nowadays, a coffee shop in a second-tier city costs an average of 1.5 million yuan per shop.

Zhao Kedong, CEO of carving time Group, has a deep understanding of the trouble caused by high rents to coffee shops. He said bluntly: "Today, the biggest cost pressure for coffee shops is rent, which generally accounts for 20% to 30% of the total cost."

However, unlike other coffee shops that chase to open stores in luxury areas at the cost of high rent, Man Coffee takes a different approach and chooses the store to be located in a cold area.

On PPT, the location of a shop for internal reference, the last page reads: "it is not necessary to choose the shop on the first main road. Considering the rent, we can open it on the second and third trunk roads. If some institutions of higher learning have suitable locations and reasonable prices, it is also preferable."

Take the shops where Man Coffee is opening in Beijing as an example. Unlike a large number of American coffee shops that choose to open among supermarkets, Man Cafe Lido is located next to Side Park, and the north door of Mancaf Park is next to Jiangfu Park on the edge of the Fifth Ring Road. Renmin University store is opened in the teaching building.

Lin Yijie, a coffee brand researcher, believes that most American cafes such as Starbucks are located in prosperous areas in order to gain high popularity. Under the pressure of high rents, these cafes attach great importance to the mobility of their guests, so standing up to drink coffee has become a style of these cafes. In contrast, coffee shops opened in non-prime areas will have different products and styles, because the expectations of customers are different. These coffee shops, which do not rely on the large flow of passengers in the super area, attach more importance to the fact that customers can complete multiple purchases in the store rather than buying a cup of coffee and leaving.

"the rent for those prime locations may be 30 yuan per square meter per day, or even 40 yuan per square meter per day. The opening area of Man Coffee is generally between 500m2 and 800m2. If we choose such a prime location, the cost of rent alone will reach 15000 to 24000 yuan per day. " Xin Zi phase analysis said.

Take the Man Coffee Industry Shop as an example, its total area reaches 1000 square meters. As a result of avoiding the prime location where Shangchao is located, the rental price of the coffee shop is only 6 yuan per square meter per day. "Today, industrial sports stores are the most profitable stores for coffee, with a daily turnover of 50,000 yuan."

However, the location strategy is not the whole secret of the profit of coffee. In fact, if you look at the menu, you will find that the prices of drinks in diffuse coffee are not much different from those in American cafes such as Starbucks, but meals with waffles and toast are much more expensive than similar products in American cafes.

"Coffee is actually a very low-margin product. Waffles and toast cost very low, but the added value is much greater than coffee. The smart thing about diffuse coffee is that you don't know how to survive without cafes and selling coffee. " Said Chen Wei, a marketing scholar.

"the best-selling item in diffuse coffee is not actually coffee." Xin Zi-hsiang believes that the geographical location of his store has determined that Man Coffee will never make a profit by selling "standing Coffee."We hope that customers can stay in Man Coffee for a day, so he will naturally have something to eat and drink. And maybe invite friends over for dinner."

In the diffuse coffee shop, there have been activities that consume more than 9 cups of coffee and get one free for a long time, while foods such as waffles never take part in the event. "We give our guests discount cards to increase popularity through nine-for-one free activities, and waffles and toast can really increase guest order consumption." Xin Zixiang said.

In addition to rent and food consumption, the joining strategy of Man Coffee also relieves the financial pressure and indirectly enhances profitability for Xin Zi Xiang.

As a giant in China's coffee chain market, Starbucks adopts a model of cooperation with three major regions to help develop food and beverage products that suit local market tastes. In the store control, Starbucks has maintained a pure blood state, has not yet adopted to join the way to expand the territory.

Unlike Starbucks, Man Coffee adopts a direct operation + cooperation model when adding stores-in addition to first-tier cities such as Beijing and Shanghai, Man Coffee will open stores with local partners in second-and third-tier cities. In these partner stores, the proportion of investment in diffuse coffee will remain between 25% and 35%. "We generally only cooperate with strong partners, and generally require each other to have the strength to undertake at least ten stores." Xin Zixiang said that this is also the reason why Starbucks has been operating in China for more than a decade, while the number of stores has been overtaken by Korean coffee shops in two or three years.

At present, because of the outstanding profitability, diffuse coffee has become a hot cake in the eyes of partners. "We do have a choice. If the partner says that he is willing to accept only one store, we can immediately find a stronger partner. In the next two years, of the more than 200 stores in China, ManCoffee will maintain about 30% of the direct stores. The rest are joint ventures."

The financial strength, the ability to expand, and the agreement with the business philosophy of coffee are the three major criteria for Xin Zixiang to select partners. "We will check the location, products, services and other key links of the cooperative store."

In order to achieve the goal of turning the coffee shop into the third space, strict control of partners is a very important link, but there is still a long way to go in the future.