Even a large number of coffee closed shop tracking: how about two deals an hour with coffee?

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1 hour, no restaurant customers, two takeout orders. This is the sales situation of Ganjiakou Coffee Shop in Beijing on the afternoon of February 28.

Since 2017, Internet coffee, represented by Luckin Coffee and Lian Coffee, began to hit the domestic coffee market. Starbucks, a traditional coffee giant, was hit and had to launch a takeout service to join the competition. Recently, even coffee has been exposed to a large number of shop closures, is the coffee market facing a reshuffle?

The door of Lian Coffee Zhongguancun East Road is deserted.

Increasing demand for Internet Coffee

Coffee is one of the three largest beverages in the world. Although there has been a lot of cultivation in China, this "imported product" has never become the mainstream of Chinese beverage industry, and its domestic influence is far inferior to that of local "tea". But recently, the demand for coffee has increased rapidly.

Although coffee consumption in China is still in its infancy, it is growing at an alarming rate. According to data, the global coffee market grew by only 2% in 2017, compared with 15% in China, which will maintain double-digit growth in the next 10 years.

Statistics from the London International Coffee Organization show that China's coffee consumption is growing at an annual rate of about 15%, which is seven times the global average. Guoxin Securities speculates that the sales volume of China's coffee market is expected to reach 300 billion yuan in 2020.

At present, the per capita coffee consumption in China is less than that of the United States. Even compared with South Korea and Japan in East Asia, the per capita coffee consumption in China has a lot of room to increase. Internet coffee takes a fancy to this prospect and joins the market.

There is only one courier waiting for coffee at Ganjiakou Coffee Shop.

Even the number of coffee was revealed to have plummeted by 40%. Stores were closed.

According to users in many cities with coffee layout, recently, even coffee has begun to close a large number of shops in many places. According to media reports, in the capital Beijing, for example, there were more than 60 coffee shops, and more than 20 stores said they would close after the Spring Festival. Shenzhen used to have about 30 stores, with a daily average of about 220 cups per store, but now there are fewer than 10 stores, falling to about 150 cups a day. In addition, many stores in Shanghai, Guangzhou, Shenzhen, Hangzhou and other places are not open at present. At most, there were more than 120 stores in Shanghai. At present, only more than 70 stores are open normally, and there is only one store under more than a dozen in Hangzhou. According to preliminary statistics, the proportion of coffee closed across the country has reached 30% and 40%, and this momentum is still continuing.

In order to confirm this situation, on February 26, the reporter visited and found that although the Spring Festival has passed, the doors of many even coffee shops in Dongcheng District of Beijing are still locked; a number of even coffee shops in Chaoyang District have been converted to other uses. Even coffee shops on Huixin West Street are currently selling flowers; the pomegranate Zhuang shop on Dahongmen Street in Fengtai District and the regular shop at No. 20 Chaoyang North Road are no longer open. Located in a densely populated area, even the shop on Coffee East Zhongguancun Road is very popular, with very few customers, and only one couple enters the store to order coffee in 20 minutes.

The capital chain is tense and anxious to "slim down" a new round of venture capital has yet to be settled?

According to public data, Lian Coffee was founded in 2014. In the early days, it used the official account of Wechat as its entrance, accumulated users by providing coffee delivery services of Starbucks and other brands, and began to transform into its own-brand coffee in August 2015. With Internet thinking and O2O play, even coffee takeout coffee field once became a clear flow in the market, and won some capital favor, previously received two rounds of financing totaling 208 million yuan.

Due to declining sales and tight cash flow, even coffee has owed coffee bean suppliers for nearly half a year, and the payment cycle of other raw materials such as syrup and packaging materials has been delayed, according to Chinanews.com. At the same time, due to multiple pressures, even coffee is quietly reducing the cost of core materials such as coffee beans and machines.

In addition, according to a number of raw material suppliers of Lian Coffee, there have been arrears and pressure on the Coffee before the Spring Festival this year. For example, in January, a milk supplier began to owe, while a syrup supplier was owed nearly 2 million yuan. Cooperation has stopped in 2019. "many raw material suppliers need reminders to get the money back, and even coffee won't take the initiative to pay for it."

According to the Economic reference Network, Lian Coffee's development strategy in 2019 has been set as "brand slimming, reducing investment in brick-and-mortar stores, and increasing online marketing." In addition to closing the shop, Lian Coffee has also reduced its staff. it is reported that there are currently more than 200 office staff in Beijing, which have been optimized one after another. "the gap in the departure of store operators during the Lunar New year is not made up. Optimize the existing store staff, control the number of promotions, and persuade people to quit to compensate 1 Murray for 2 months' salary if necessary."

According to the above-mentioned media reports, the reason leading to the current situation of Lian Coffee is that "the early development is too fast and the location is blind. The stores opened in the later stage not only did not increase turnover, but dragged down the performance of the old stores, coupled with the increase in labor costs." the early financing has also been basically exhausted. " In addition, investors are not as optimistic about the brand of Lian Coffee as before, due to the scuffle of Internet coffee and increased competition for subsidies, once there is a lack of financing, it immediately appears.

In response to market rumors such as the recent frequent revelation of a large number of shop closures and tight capital chains, Lian Coffee recently responded that it had completed a round of store adjustments around the Spring Festival, mainly aimed at unprofitable and early stores that did not meet the requirements of the brand; the purpose of optimization was very simple, that is, to ensure that the company returned to profitability and prepared for the winter. Lian Coffee also revealed, "A new round of financing will be announced before April."

2018 can be called the first year of coffee in China's coffee market. How will the coffee giants face off in 2019? It's all waiting to be seen. But there is no doubt that a deep reshuffle in the domestic coffee market is imminent.

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