Coffee price war escalates: KFC promotes "one" yuan coffee! "Coffee package" is finally here!

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On September 9, KFC launched a monthly coffee card, which costs 28 yuan and can provide a designated cup of coffee for 30 days. This means that the price of a cup of coffee is about 1 yuan. By contrast, according to Meituan takeout, KFC medium lattes sell for 16 yuan per cup. However, according to the actual feedback from netizens, the 28-yuan monthly card is only qualified to buy "one-yuan coffee", and the coffee itself still needs to pay 1 yuan at a time, that is to say, the price of a cup of coffee is more than one yuan. KFC just "played" a word game.

Photo: KFC

The monthly card, which goes on sale from Sept. 9, costs 28 yuan for a total of 500000 copies, according to KFC Mini Program's KFC Pocket Fried Chicken Shop. Consumers can only buy through the Mini Program. In terms of rights and interests, consumers can consume a designated medium cup of freshly ground coffee at a price of one yuan per day, including medium American (ice / hot) and latte (ice / hot). In addition, the monthly card can only be used for eating in a restaurant or ordering food for self-service.

According to the AI Finance and Economics report, Yum China's public relations department said it did not know about this. At present, in addition to KFC, coffee is common in catering and convenience store systems, including McDonald's, Family, 711, convenience Bee and so on. Coffee as one of the important drainage products, KFC through monthly cards, low-cost coffee to attract consumers into the store, may be one of its real strategies.

Photo: KFC

At the height of Luckin Coffee's battle with Starbucks, Sinopec, which has 20, 000 convenience stores, suddenly announced that it would enter the coffee market, and KFC would begin to harvest the dividends of the era of coffee traffic.

As early as the beginning of this year, KFC said that coffee is more profitable and growing faster than the entire food category, and coffee has become an important opportunity for KFC to achieve growth. Last year alone, KFC attracted 10 million new coffee users through cross-selling, and revenue from coffee takeout doubled. According to figures for the first half of this year, KFC's K-coffee sold 60 million cups in half a year, up more than 45 per cent from a year earlier.

The performance-price ratio of 1 yuan coffee is full of "wool" temptation compared to Starbucks 34 yuan, lucky 24 yuan, Sinopec 18 yuan coffee.

Photo: KFC

According to the Investment Analysis and Prospect report of China's Coffee Industry from 2017 to 2021, the average person in the Chinese mainland area consumes only six cups of coffee per person per year, while even in first-tier cities such as Beijing, Shanghai, Guangzhou and Shenzhen, it consumes only 20 cups of coffee per person per year. The per capita annual consumption in Europe and the United States is about 400 cups and 300 cups in Japan and South Korea, which is 80 times and 60 times that of China, respectively. In view of this, the domestic coffee market is still full of potential from an international point of view.

So, did "Coffee package" make any headway?

Drinking coffee can also be a monthly plan, of course, not just the Chinese. In March this year, Burger King launched the "coffee plan model". For only $5 a month, you can get a small cup of coffee at Burger King every day. Soon after, Coffee Mafia, a coffee shop in Tokyo, Japan, also launched a "coffee subscription service". Customers can drink a medium cup of American coffee each time they come to the store for 2000 yen a month, and upgrade to a large cup of American coffee for 3,000 yen a month. Pay attention! There are no restrictions in their family, and they can even get it indefinitely every day!

Photo Source: Coffee Mafia

The price of coffee is so low, can merchants still make a profit? Are you sure you're not "burning money to buy popularity" like Rui Xing? According to Coffee Mafia, customers who order "coffee package" come to the store 20 times a month on average. Although customers come to the store too often, which lowers their profits, high-frequency patronage can also deepen their interaction with customers, enhance customer loyalty, and increase sales of other goods in the store through "joint sales", thus increasing turnover. Obviously, KFC, which specializes in fast food, launched "Yuan Coffee".

In view of this, it seems to mean that feeding caffeine-deficient workers is a good idea. However, the "subscription economy" is, after all, a discipline, and it does not mean that the package is absolutely suitable for the coffee industry, let alone the pitifully small Chinese coffee consumption market.

At the very least, if Starbucks, which has been staying for a long time on average, launched this service, Starbucks would definitely become the ── of the people's Park or the library study room, although some stores are now, but this will make Starbucks a more professional food market. Or if you can not accurately grasp the needs and experience of the consumer group, and turn the coffee monthly service into the momentum of future growth, it is likely to make the coffee monthly become unpopular, or unprofitable and come to a bleak end.

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