[Manner Coffee] A coffee shop with only 2 square meters and only sells coffee with a monthly income of 100000

If you go to Shanghai to play, a variety of travel strategies will certainly recommend such a store-Manner Coffee. The shop claims to be the smallest coffee shop in Shanghai, with an area of only 2 square meters. the awning in front of the door and a small window 80 centimeters wide are all the shop shows to customers.

Despite the fact that it is small, it is rich in content. This shop not only has a full range of coffee, but also sells coffee beans. The most important thing is that such a small shop of 2 square meters, with a monthly income of more than 100000, is frighteningly efficient.

Four days ago, a number of media released news that MANNER, a new local coffee brand in Shanghai, had obtained financing again. Of course, for those who pay more attention to the trends of coffee brands, "coffee brand financing" is no longer a news worthy of capitalization. Today, the MANNER coffee financing incident in the news is once again mentioned because the brand mentioned the financing process three times in just five months. This kind of financing speed is a relatively rare type in the coffee industry.

Here, let's first review the financing process of the new coffee brand MANNER.

On May 24th, 2021, MANNER received a new round of hundreds of millions of dollars of strategic financing exclusively invested by Meituan Dianping's Dragon Ball Capital. (for more information, check out: exclusive Investment! Coffee brand MANNER received hundreds of millions of dollars in financing! )

This round of financing may be used for store expansion and digital investment, after which MANNER may be valued at more than $2 billion.

On February 24, 2021, MANNER completed the A + round financing invested by Singapore's sovereign wealth fund Temasek.

The post-investment valuation is about $1.3 billion.

On December 24, 2020, MANNER completed the strategic financing of H capital, a private equity fund launched by Chen Xiaohong, a former global partner of Tiger Fund, and Coatue Management, a hedge fund.

On October 19, 2018, MANNER completed a round of financing of RMB 80 million from today's capital investment, which is the first financing since the establishment of MANNER.

From December 24th to May 24th, it happens to be five months. In these five months, MANNER, a new local coffee brand in Shanghai, has mentioned the financing process three times, and each round of investors has a good background!

one.

Behind the capital

On May 24, MANNER received an "exclusive" investment from Meituan Dragonball Capital. Behind this "exclusive", it was reported that a number of head institutions also participated in the competition, but failed to get investment share.

Since MANNER began financing in October 2018, MANNER has introduced five major investors: today's Capital, H Capital, Coatue, Temasek and Dragonball Capital.

Public information shows

Today's Capital

Today Capital is an international investment fund focused on the Chinese market, independently managing 2.5 billion US dollars of funds, mainly from a number of famous overseas investment institutions, focusing on retail, consumer goods, health care, Internet and other industries.

Today Capital, as the first round financing investor of MANNER, has more shares in MANNER than the founding team by the end of 2020, according to IPO early know.

In March this year, Today Capital also sent senior executives to deeply participate in the daily management of the MANNER coffee brand. Jin Binbin, the capital investment manager, mainly led the operation and management of MANNER Coffee Company. "IPO knew" also pointed out in the report that Jin Binbin now plays the role of general manager of CEO/ within MANNER, while Han Yulong and Lu Jianxia are more focused on the research and development of specific products.

H Capital 、 Coatue

H Capital, the full name of Merrill Lynch Asset Management Group, is a private equity fund founded in 2014 by Chen Xiaohong, a former global partner of Tiger Fund, with renminbi and dollar funds, while Coatue, a New York-based hedge fund, has invested in Ding Dong Buy, Tea, KEEP and other projects in China.

Temasek

Temasek, founded in 1974, is an investment company established in Singapore. Temasek, which has been in China for 16 years, has invested in a number of large domestic commercial banks and bet on many Chinese Internet giants such as Ali, Tencent and Xiaomi.

Dragon Ball Capital

Dragon Ball Capital is Meituan's industrial investment fund. In recent years, it can be seen behind many well-known consumer brands.

Founded by Meituan as a cornerstone investor in 2017, it is a market-oriented professional investment institution focusing on the field of large consumption. its first phase of the fund raised 2 billion yuan in July 2018. investors include industrial investors such as Meituan, Tencent and New Hope, as well as well-known investment institutions such as Guochuang Kaiyuan Mother Fund, Noah Goofi, Xiangjiang Shengshi Mother Fund and China Merchants Capital Fund.

Three rounds of financing were obtained in less than five months, which is rare for the coffee industry.

The new coffee brand MANNER has been frequently settled by so many senior investors, on the one hand, it has injected new impetus into the development of MANNER Coffee, on the other hand, under the expansion of capital support, it has also proved that the capital and the market have highly recognized MANNER Coffee.

According to earlier reports from IPO, an investor close to MANNER said: "this year may be in a bit of a hurry, but at this rate of growth, the possibility of IPO next year and the year after next is not small. In fact, the profit situation of MANNER is quite good."

So, what is the origin of this coffee shop?

two.

New coffee brand MANNER

The owner of this store is Han Yulong, a "post-85" who is a coffee enthusiast. At first, because of his hobby of photography, Han Yulong ran a photography-themed shop in Nantong, which is well-known locally.

Before long, he found that he loved drinking coffee and making coffee far more than photography, so he resolutely turned the shop into a coffee shop. But the good times did not last long, because people in Nanchong had no interest in coffee, and the business of cafes went from bad to worse, so he thought of Shanghai, where coffee consumers were more popular.

When he came to Shanghai, Han Yulong did not choose a direct location to open a store. instead, he worked as a roaster at Cafe del Volc á n in Shanghai for a year, hoping to hone his coffee-making skills and make better coffee. Cafe del Volc á n is a boutique cafe of pure German origin. Its coffee is rich and mellow, with a long aftertaste, and is famous among foreigners. After work, Han Yulong conducted a survey of the entire coffee market in Shanghai, combined with his own economic strength, and finally set his sights on this 2-square-meter store.

Han Yulong rented the small place in August 2015, and the average daily sales exceeded 100 cups shortly after opening. Now Manner Coffee receives hundreds of customers every day, and many people would rather wait in line for half an hour to get a cup of coffee here.

In addition to the office workers in the nearby office building, there are many netizens and fans who come to "pull the grass". Some people say that the coffee here reminds him of Blue Bottle-- in New York, which is known as Apple in the coffee world and is more compelling than Starbucks.

Why is the business in this store so good?

1. The product is very cost-effective.

Performance-to-price ratio is the magic weapon of Manner Coffee, in Han Yulong's own words: "in Manner Coffee, you can use 10 yuan to drink 20 yuan of coffee."

Here, the small latte costs only 15 yuan and the large one costs 20 yuan, which is about 50% cheaper than the nearby coffee shop. In addition to the low price, Han Yulong also thought of many ways to bring benefits to customers, such as 5 yuan for coffee cups and 18 yuan for coffee beans.

Although the price is cheap, the quality of Manner Coffee is not bad at all, and it really achieves the ultimate performance-price ratio. Han Yulong goes to the bakery in Songjiang in Shanghai every week to bake beans, which can ensure the quality of coffee beans and lower cost.

A cup of mellow coffee comes not only from high-quality coffee beans, but also from high-quality milk and drinking water. Manner milk is the only product of Asahi Luyuan, retail price 24 yuan a box, the water is also treated with a special water purifier, these high-quality raw materials work together to create the high quality of Manner coffee.

Han Yulong said that he can make a gross profit of 5 yuan for a 15-yuan cup of coffee, and he makes almost no money if customers bring their own cups. Although the profit margin is meagre, according to the current operating conditions, the cost is expected to be recovered by the end of this year.

two。 The concept of site selection is unique.

Generally speaking, the location of a restaurant must take into account the number of passengers, but the format of the cafe, which is full of literary flavor, is different. Many young writers and artists especially like to look for shops hidden in alleys. The deeper they hide, the more they want to find them. Whenever they find something new, they will have a sense of achievement and can't wait to share it with friends.

Han Yulong found this characteristic of consumers, so he did not choose a prosperous shop with high rent and large passenger flow when choosing a site, but found such a small shop of 2 square meters according to his own standards.

He is very satisfied with the location of the shop. First of all, because of its small area and low rent, it can greatly reduce the operating cost of the coffee shop and maintain the low price of the products in the store; second, there is a Starbucks near the store, which shows that people nearby have a demand for coffee. There must be no shortage of customers here.

3. Be a pure coffee shop

Han Yulong said: "many customers go to those large cafes, basically not for coffee, but more for social and store environment, so desserts account for a larger share of these cafes. And I just want to open a pure coffee shop."

So Manner Coffee offers neither chairs nor takeout, and the only thing guests can sit on is a bench at the door and nothing else.

Once there was a guest who wanted to order 30 cups of coffee takeout, but Han Yulong refused. In his view, coffee is an organic drink, which is changing all the time. As the temperature drops, the acidity will rise, the smoothness will decrease, coffee and milk will be layered, and the originally mellow coffee will become a sour "potion". In order to earn this "quick money" and lose the credibility of the brand, the loss outweighs the gain.

It is because of the familiarity and love of coffee that makes Manner Coffee successful today. That's not the way to make a product. Consumers will have confidence in the product only if you put your heart into it.

Up to now, MANNER Coffee has 150 stores in China.

In terms of products, MANNER Coffee is also constantly expanding its product line and layout diversified consumer scenarios.

For example, in terms of products, MANNER Coffee set up its first bread baking workshop in Shanghai in early 2019. MANNER Coffee has gone from the early only affordable boutique coffee to now its products include Italian, iced, hand-brewed, bread, portable coffee bags, boutique raw beans, oatmeal milk, coffee utensils / equipment / cups, peripheral products and other whole industry chain products.

In the consumption scene, the consumption in the store scene has expanded from the store scene with no chairs and no delivery to the current online consumption services, such as MANNER developed the brand smart order Mini Program and officially settled in Tmall in August last year.

While expanding its stores, MANNER will also expand its product line.

Last.

For Han Yulong, a post-85 boy, MANNER Coffee is not only coffee, but also a small coffee industry chain, which may be the advantage of Han Yulong opening a cafe.

According to the current trend, MANNER may become the dark horse of the domestic coffee track.

* Image source: Internet