Lian Coffee responded to a large number of reports of shop closures: adjusting stores to return to profitability, new financing was announced before April.

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In response to media reports that Internet Coffee and Coffee closed a large number of stores a few days ago, Lian Coffee said when it accepted the Blue Hole connection that the company had carried out a round of optimization on some stores that were not profitable and did not meet the hardware requirements before and after the Spring Festival. It is not as reported by the media as a large number of shop closures.

The Economic reference Network reported today that Lian Coffee has begun to close a large number of stores in several major cities across the country, with the proportion of shop closures rumored to reach 30% and 40%. Economic reference network analysis of the reasons for shop closure said that one is the decline in the number of physical stores, and the other is that there is no new financing in place, resulting in the need to reduce the size of even coffee.

In response to the above report, Lian Coffee official said in accepting the Blue Hole connection that the company has only carried out a round of optimization for some stores that are not profitable and do not meet the hardware conditions, which is a normal business adjustment. The reason for optimizing the storefront is simple, "in order to ensure that the company is back to profitability and be ready for the winter."

Lian Coffee, a well-known Internet coffee brand in China, was founded in 2014 and began to provide delivery services to Starbucks and other coffee brands. In 2015, it spun off the business to self-operated coffee delivery based on Internet channels such as Wechat.

Lien Coffee Coffee Box received 50 million yuan in investment from Huatze Film and Television in April 2016 and 158 million yuan in B+ round financing by QiMing Venture Partners and Banyan Capital in March 2018. The earliest angel investors included hosts Li Jing and Dai Jun.

The delivery service function of even coffee is more common in the Wechat service number, which belongs to the brand that plays well in social marketing. He has cooperated with online celebrities such as Papi Jiang and Li Shu in social marketing, which has won the favor and favor of many users.

At present, the Internet Coffee track contestants also include Luckin Coffee, which opens 2000 stores a year, but lost about 1 billion yuan last year, adopting a crazy advertising plus subsidy price reduction model. In addition, under the attack of Lucky and Lian Coffee Internet Coffee, even Starbucks teamed up with ele.me to open take-out coffee to adapt to consumers who are becoming more and more Internet-connected.

Blue hole new consumption believes that the essential core of business is to make money, whether it is new consumption of Internet brands or old consumption of old coffee brands, if there is no positive cash flow to maintain normal operation, relying on pure subsidy model will be very difficult to retain users, especially in the current economic environment.

Lian Coffee revealed that from the adjusted estimate, the company will return to profitability in the second quarter. And a new round of financing will be officially announced around April.

(source: blue Hole New Consumer Harden)

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