There is a way in the transformation of Coffee Wing, holding back a big move.

If you choose the most "good-looking" listing company on the new third board, it will be Coffee Wing.

Open its investor list, Yao Jinbo, Xu Xiaoping, Chen ou, he Jun, Li Weijia, Zhang Shaogang and other household names appear on it, even the founder is known as the "immortal sister" of the beautiful president Yin Feng. Along the way, fan economy is the biggest amulet of Coffee Wings.

However, despite the blessing of so many love beans, Coffee Wing, which has just arrived on the new third board, has lost money for the first time in nearly a decade. According to the company's 2016 annual report, revenue in 2016 was 63.3987 million, down 2.8% from the same period last year, while net profit was-5.4655 million, down 157.50% from the same period last year.

"as the new third board has become a public company, the caliber of business revenue recognition has changed, and contracts need to be confirmed in phases over several years; in addition, the company invested a lot of money in strategic layout infrastructure in 2016, all of which are the reasons for the poor performance of 2016. These early-stage investment will optimize the financial statement data for 2017. " This is how Yin Feng explained last year's losses.

China's coffee market is as large as 70 billion yuan, and Coffee Wing, which has a 17-year history of offline cafes, hopes to seize the opportunity: one is to lay out the winglets of street corner shops offline, and the other is to enter the market of automatic coffee machines.

"the layout and scale of Coffee Wing in China, coupled with the listing of the new third board, can also be regarded as some well-known coffee brands in China. In the future, we hope to grow with the Chinese coffee market." Yin Feng said.

"Strategic transformation and poor financial performance are to be expected."

In 2016, Coffee Wing lost money for the first time in nearly a decade.

Yin Feng said, "Coffee Wing is in the process of strategic transformation and optimizing the business structure, which is bound to affect the stability of revenue, so the poor performance of the earnings figures is to be expected."

At present, the important layout of Coffee Wing is to strengthen the supply chain construction and provide raw materials for franchisees on the basis of the previous direct stores and franchisees. Prior to this, the raw materials of the Coffee Wing franchise store were uniformly supervised by the brand company and purchased by the franchise store itself. "supply chain construction is a professional area, which requires a polishing process. In order to further optimize the product user experience and enhance food safety, the supply chain will gradually achieve integrated procurement and supply. As a result, there will be a big change in sales revenue in 2017. "

In addition to strengthening the construction of the supply chain, Coffee Wing is also adjusting the store model, launching a new high-energy series, light luxury series, lighter operation and lower threshold street corner store winglet series, while also making a big foray into the smart coffee machine market.

In fact, the coffee shop industry is in the reshuffle period, offline life is not easy, the strategic layout of street corner shop winglet and smart coffee machine market is imperative.

"the size of China's coffee market is as high as 70 billion, and it will break through 100 billion in 2020. We hope to continue to cultivate the coffee market vertically. From offline chain stores, to mobile urban intelligent coffee machines, and then to the future super-circulation of coffee beans and coffee derivatives, will be gradually involved. " Yin Feng said.

70 billion coffee market, intelligent coffee machine is a rising new tuyere.

According to the industry data in 2015, the domestic coffee industry is a large market with a scale of 70 billion, which is expected to exceed 100 billion in 2020. Of the 70 billion, instant coffee accounted for 50 billion and offline cafes accounted for 20 billion.

Young consumers have driven the growth of the instant coffee market, but with the upgrading of consumption, a new alternative has emerged, that is, smart coffee machines. Intelligent coffee machine has become a new tuyere which is rising rapidly.

In Europe, the United States, Japan and other developed countries, intelligent coffee machine has been a mature model, the industry scale has reached hundreds of billions, with an average of one coffee machine for every 40 people. In China, there is currently about one coffee machine for every 4500 people. Obviously, the market space is huge.

"Instant coffee is inferior to handmade coffee in terms of quality, and the waiting time in offline cafes is longer, so intelligent freshly ground coffee machines can compete with offline cafes in efficiency and instant coffee in experience. This intelligent freshly ground coffee machine model has been proved in overseas markets. In the future, the market size of China's intelligent coffee machine will be between 20 billion and 50 billion. " Yin Feng said.

At present, there are a number of Internet companies doing intelligent coffee machine business in China. Coffee Wing also launched its own smart coffee maker brand, Free Wing, in the first half of this year. Unlike other brands, they are mainly used in university campuses, large enterprises, transportation hubs and other waiting areas. Yin Feng believes that it is more important to understand the user crowd, lock the location, put it accurately, and make each machine profitable than spending money to promote it.

An overview of the entire offline intelligent sales terminal, intelligent vending machine is currently unboiled water. In comparison, the Coffee Wing intelligent coffee machine has its own unique advantages: the first advantage is "light operation", Yin Feng told Zhanjun, "you can produce 100 cups of coffee at a time. If you put it in the enterprise, just find someone to run it for you."

Another bigger advantage of the intelligent coffee machine is the high gross profit margin. "the gross profit margin of other retail brands is relatively small, generally 30%, 35%, and the operating cost is very high; the gross profit margin of the coffee machine is high. Even if the intelligent coffee machine sells only 9.9 yuan per cup, the gross profit margin can reach 70%."

Yin Feng hopes to change the terminal pattern of China's coffee market.

Do not think highly of the pure money-burning model and expand again under the condition of ensuring the profit of a single store.

The intelligent coffee machine is essentially an unattended coffee shop, but compared with the code-scanning intelligent retail terminal, Coffee Wing is not a simple Internet model.

"if you only operate according to the pure Internet model, there is a certain risk. Many Internet companies that make smart coffee machines think this is a traffic portal, because mobile phone code scanning can get users and precipitate users. Some Internet companies sweep floor paving machines on a large scale and blindly invest a lot to push costs, but the final effect is not good, and the number of users is poor. This is because of the lack of understanding of the coffee users, and the spot placement is wrong. "

The model of Coffee Wing is just the opposite, which attaches great importance to the profitability of a single machine. This business is a mature model in Europe, America, Japan and South Korea, and there is no mobile phone code scanning function, but basically all of them are profitable on a single machine. The first machine landed at Hunan University at the end of May and was on sale at half price. It sold 375 cups on the first day and an average of 110 cups a day in the first 21 days. We have calculated that a coffee machine can break even with seven cups a day; 30 cups a day will pay off the investment in five to six months; and 20 cups a day will pay back the investment in about eight months. Whether this thing can be done or not, the key lies in whether the single machine can maintain a healthy and profitable state. "

Because of putting profit first, the pressure on working capital is very small. "maybe everyone thought we needed financing to get the project running, but we quietly and quietly started to do it quickly. More than 400 machines have been signed in one month, and the operation mode is also very rich, such as direct investment, joining, leasing, adoption, sales and so on. "

The advantages of having a large number of offline franchisees are reflected at this time. Location and operation and maintenance can be entrusted to local coffee wing offline store franchisees. "We are offline franchisees in 130 cities. They are our best partners in each city and can help us to complete the site selection and daily operation and maintenance work. Our next goal is to roll out 1000 units, which may be completed by September. "