Capital is keen to open coffee stores only because of the high cost of access by users?

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The new retail of coffee is springing up. Recently, fresh e-commerce has launched the Mini Program Little Red Cup online every day to compete with Luckin Coffee at a low price. On the other hand, Luckin Coffee reported the news that the coffee machine was mortgaged to guarantee the debt. Is the rapidly expanding coffee shop under the pressure of capital a good business after all?

The reporter opened the small Red Cup Mini Program and saw that the home page claimed to use 100% of the finest Arabica coffee beans, eliminating the cost of the third space and celebrity endorsements. At present, the price of classic ground American style is only 7.9 yuan, and the price of ground latte and cappuccino is only 8.9 yuan. The price of the same coffee in Luckin Coffee is 21 yuan, 24 yuan and 24 yuan respectively. The price is less than half that of Luckin Coffee. Similar to Lian Coffee, Xiaohong Cup is in the form of micro-warehouse, which is distributed to consumers through logistics.

New coffee retail has been surging in the past two years, with Luckin Coffee getting two rounds of huge financing and rapidly expanding 2000 stores. On December 12, 2018, Luckin Coffee announced the completion of round B financing of US $200 million, with a post-investment valuation of US $2.2 billion. Hou Youlian Coffee won 100 million yuan in B + round financing last year.

However, the rapid expansion of coffee stores also poses a profit problem. Statistics show that there were about 100000 coffee shops across the country in 2016, with a net closure rate of 14 percent. According to the financing business plan released by Luckin Coffee, Luckin Coffee had a cumulative sales income of 375 million yuan and a net loss of 857 million yuan in the first nine months of 2018, even shrinking and adjusting his coffee stores at the beginning of this year. On April 1st this year, Luckin Coffee (China) Co., Ltd. added a piece of chattel mortgage information. Ruixing's chattel collateral is coffee machine, milk box, powder bin and other goods, including Beijing, Shanghai, Guangzhou, Shenzhen, Chengdu and other stores.

Coffee has become a cheap means of diversion and getting guests.

Despite facing the cruel re-elimination of the coffee market, why do the bosses love coffee and start a business? According to the analysis of Internet industry insiders, the customer acquisition costs of mobile APP, official account and Mini Program are all rising, especially on the app side, where the cost of registering to place an order is usually more than 50 yuan. On the contrary, coffee has become a low-cost means of diversion and getting customers: the cost of simple coffee beans and packaging is usually about 1-2 yuan per cup, and the distribution cost is usually about 5-7 yuan. Even if users do not buy other related products, the current pricing of coffee can cover the cost of coffee and distribution. "

Zhu Danpeng, an analyst of the Chinese food industry, told reporters that the re-elimination of the coffee market is normal, because the dividend of the industry does not represent the dividend of the enterprise: "even coffee has a big deficiency in brand and scene, its positioning is not up and down, and the capital strength is not enough. There is no way to form a scale, so it is bound to shrink. But even the coffee should not disappear, because there must be individual stores in its core store to make profits, and the brand also has a certain number of fans. "

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