Coffee review

International coffee brands continue to "add ingredients" to small cafes in the Chinese market.

Published: 2024-11-02 Author: World Gafei
Last Updated: 2024/11/02, Professional baristas Please follow the Coffee Workshop (official account cafe_style of Wechat) following COSTA's acquisition of all its stores in mainland China, Starbucks is also seeking wholly-owned development in southern China recently. International coffee brands continue to add ingredients to the Chinese market, which has an impact on local coffee brands, and private small cafes are even more desperate for survival. However, coffee consumption in China every year

For professional baristas, please follow the coffee workshop (Wechat official account cafe_style)

COSTA is also seeking wholly-owned development in southern China recently after Starbucks bought all its stores in mainland China. International coffee brands continue to "feed" the Chinese market, which has an impact on local coffee brands, and private small cafes are "trying to survive". However, the annual growth rate of coffee consumption in China is more than seven times that of the global growth rate, making more investors eager to try, and investment projects in cafes with different prices have also become a stepping stone for many investors. some projects even claim that 100000 yuan can create wealth on a small scale.

The reporter recently visited large and small coffee shops and chain franchisees to find out whether the investment in the coffee industry is really "thrifty".

The seemingly saturated Chinese coffee market has maintained a momentum of growth. According to the report on Investment Analysis and Prospect of China's Coffee Industry from 2017 to 2021 released by China Consulting Investment Network, China's coffee consumption is growing at an annual rate of 15% to 20%. The Euromonitor report also pointed out that sales of ready-to-drink coffee in China increased by 19% in 2016.

The survival of private cafes is not optimistic in the eyes of many people in the industry. Zhu Danpeng, an analyst of China's food industry, told reporters that private cafes mostly use word-of-mouth and performance-to-price ratio as competitive tools, but in terms of future development trends, unless they have their own characteristics, otherwise, it is difficult to compete with chain cafes: "small cafes do not have many competitive advantages in terms of industrial chain, supply chain, brand and food safety. In the future, the development of the industry still tends to be a chain of coffee shops. "

There is great pressure on the operation of small shops.

Danson knows more about her peers. She told reporters that at present, only about 80% of the small coffee shops are estimated to be able to stay in business, and her own coffee shop gradually returned to the capital after one or two years of operation. In the process of operation, the operators are under great pressure: "We need to change and reform from time to time, otherwise we will be squeezed out by the new stores that are changing with each passing day." She found that although there are so-called online celebrity coffee shops that survive with very high profits, the proportion may be less than 1%, and there are more cases of entrepreneurial failures in the market. In addition, the investment and entrepreneurship of cafes is not an one-off, but requires continuous investment in equipment upgrading, and this part of the cost becomes the last straw that overwhelms many small coffee shops.

However, investors entering the coffee shop market have joined one after another, and joining has become a "stepping stone" in the eyes of many investors. After the reporter searched the coffee shop on the Internet, he got the search results of many joining projects, among which many organizations claimed that they could create wealth with a small cost of 100000 yuan, and even an investment project that could open a store with 40, 000 to 50, 000 yuan. Another coffee franchisee said that to join his own project, a store of 20 square meters needs to invest more than 200000 yuan. For the profit situation in the later period, he said that there is no guarantee, but an example shows that some joining customers have achieved a turnover of 700000 yuan a year.

However, the head of a "big brand" coffee franchise project, which claims to have more than 600 coffee franchises across the country, said that businesses that can open a coffee shop at 30,000 to 40,000 yuan are newly established companies that cannot operate for a long time. Franchise stores are closed in many places: "although we have a lot of investment in the early stage, a store of 30 square meters may need to invest about 200000 yuan according to the local situation." But you can usually get your capital back in eight months, and there is a guarantee in the later stage. "

Industry views:

International coffee giant may be open to join

People in the industry are not optimistic about the investment projects of many small coffee shops that create wealth quickly on the Internet, believing that the operation of coffee shops depends on operators rather than hardware, and simple copying of the whole shop will make coffee shops lose the foundation of competition because of lack of characteristics. Xiao Yi, a professor at Guangdong University of Finance and Economics, said that although private small cafes will not form a large scale, they will complement the standardized and entrepreneurial coffee shop market, and will also have certain loyal customers and form a fixed market.

Zhu Danpeng said that investing 30,000 to 50,000 yuan in a cafe is the idea that some businessmen "hoodwinked" investors in third-and fourth-tier cities, which is relatively rare in the Guangzhou market because there is no room for survival at all. He believes that many investors want to use their spare money to invest in coffee brands, and they do not rule out the possibility that international coffee brands will open up to join in the future, and the future growth space, growth space, and profit space of the industry are very considerable. But the key is to see whether investors can choose a brand that is suitable for Guangzhou consumers.

Guangzhou Daily all-media reporters Lu Mengqian and Lin Lin

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