Hotel version of Lucky OYO enters the field of coffee! 13000 hotels in 300 cities are fighting for business?

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OYO, which has always been known as the "hotel version of Lucky", really grabbed business with Luckin Coffee this time.

According to the news of Sina Technology on the evening of Sept. 9, OYO Hotel opened its first coffee store, Fenran Coffee, in Xi'an, officially entering the new retail of coffee. Relying on the business activity data accumulated by its hotel network, "Fenran Coffee" selects the coffee shop according to the flow of people and hotel conditions in different areas. Coffee shops use automatic coffee machines, coffee beans and other raw materials are selected by OYO Hotel, while coffee production is done by the front desk of the hotel.

The hotel version of Rui Xing, it turns out that "division comes out of the same door"

OYO Hotel is an Indian economic hotel chain brand established in 2013. In November 2017, OYO hotels entered the Chinese market with "no franchise fee and low price" and expanded rapidly in China by integrating single hotels in low-tier cities. According to the data released by OYO Hotel, OYO Hotel has covered 13000 hotels in more than 300 cities across the country, with a total of 590000 rooms, making it the largest single-brand hotel chain and the second largest hotel chain group in China. At the same time, its "large investment regardless of cost to support rapid expansion" model is often compared with the "Luckin Coffee of the coffee industry" model, and even called "the lucky of the hotel industry".

Coincidentally, Li Wei, chief financial officer of OYO, and Qian Zhiya, founder of Luckin Coffee, both belong to the "Shenzhou Department" and have been senior executives under Lu Zhengyao respectively. Li Wei joined OYO in September last year after Li Wei became CFO of China car Rental in May 2014. after Qian Zhiya resigned as COO of China car Rental in 2016, Li Wei took over in charge of operations and finance. Coming from the same family, it is no wonder that OYO and Ruixing are surprisingly similar in business strategy, grasping the wind, raising money quickly, burning money to expand, and even quickly seeking IPO.

Lay out the coffee market to alleviate the business dilemma?

Like Luckin Coffee, who is holding high all the way and expanding aggressively, OYO is almost frantically seizing the market. According to the official data released by OYO this year, by the end of May 2019, OYO Hotel has more than 10000 hotels and 500000 rooms in China, making it the largest single-brand hotel in China. The goal of 2019 is to cover more than 20, 000 hotels in more than 1500 cities. Yesterday, OYO officially released a new figure, saying that within 100 days of the launch of its 2.0 model, 3000 hotels had been signed.

Although the data is booming, there is news that OYO is in trouble. With the expiration of a large number of franchisees after entering China, the storm of termination between OYO and franchisees has cast a shadow over OYO. In addition, according to the interface report, in June this year, OYO experienced a large-scale layoffs, the number of front-line team layoffs may be close to half. Although OYO denied the claim, saying it was not a "layoff" but a normal organizational upgrade. Choosing to enter the coffee market at this time has to remind people whether OYO hopes to reverse the predicament of hotel operation through the operation of coffee.

For the establishment of Fenran coffee business in single hotels, OYO said that mainly in view of the generally low utilization rate of single hotel properties, to actively explore more value-added services, invigorate the idle property space of hotels, improve efficiency and generate income for owners, Fenran coffee is a kind of exploration.

Shi Zhenkang, partner and chief operating officer of OYO Hotel, said that with the help of the huge hotel network, OYO Hotel has accumulated a large amount of data on business activities in the city. According to the flow of people and hotel conditions in different regions, we can quickly find out the hotels suitable for opening coffee shops. In addition, the project is developed and operated in a single hotel, so both the upfront investment and daily operating costs are far lower than those of the same type of coffee shop.

It is reported that OYO hotels will select individual hotels suitable for opening coffee shops and co-operate with hotel owners. Depending on the number of hotels and urban coverage of the OYO hotel, "Fenran Coffee" will have a certain inherent advantage in the layout of the network. The coffee shop uses an automatic coffee machine, which is operated and served by the front desk of the hotel, while the OYO hotel selects coffee beans and other raw materials. OYO hotel sources said that the follow-up will announce the details of "Fenran Coffee".

There is actually a precedent for chain hotels to sell coffee.

In fact, opening a coffee shop in a hotel chain is nothing new.

Morphine Hotel, owned by Platinum Tao Group, was founded in 2013, which is the first Hotel Theme in the industry to feature cafe culture. The number of coffee hotels rose from more than 100 in 2017 to 200 by the end of 2018, with a large number of stores opened in Beijing, Tianjin, Chengdu, Xi'an and other cities. According to the feedback from users of a review website, the price of coffee coffee is about 15-25 yuan. According to the data released by the hotel, from January to July 2018, coffee hotels consumed 2.0663 million bags of coffee and sent out about 414800 cups of coffee per month.

In 2017, Huazhu Group also launched the embedded cafe niiice caf é, which can start operating coffee with a little renovation at the front desk of the hotel. The investment of niiice cafe is no more than 30, 000 yuan, the gross profit of the product is 65%, the national average monthly turnover of stores is 5000-6000 yuan, and 60% of the customers come from hotel guests.

Recently, the coffee industry is very lively. Luckin Coffee began to expand massively in 2018, grabbing Starbucks' domestic market and is now listed in the United States. Sinopec's easyJet convenience store has recently launched easyJet Coffee in conjunction with the Internet coffee brand even Coffee. Or only when the tide recedes will we know who is swimming naked. Coffee workshop will continue to pay attention to and report on how the coffee industry will rise and fall in the future.

Reference: Sina Science and Technology, Red Star News

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