How did the total number of McCafe shops quickly expand to 1600? How is the new product of McCoffee?

On April 21, McDonald's handmade coffee brand McCaf é launched a blockbuster new product, "Wake up the Flavor Series."

McCoffee releases wake-up fragrance series

As an important new product of wheat coffee, its biggest feature is to adjust the concentration of the extract, so it is more refreshing.

It is understood that this series of new products will be added to McCoffee's long-term menu, including: wake up American style, wake up latte, wake up cappuccino and wake up bubble fruit American coffee.

Xu Yingting, general manager of McDonald's China McCoffee business, said: this is a new product tailored for Chinese consumers based on the brand positioning of McCoffee after the brand upgrade in November last year. "

In November last year, McDonald's invested 2.5 billion yuan to announce that it would accelerate its expansion of the mainland coffee market over the next three years. At that time, McCoffee made a move to upgrade McCoffee across the board.

For example, choosing yellow as the dominant color of the coffee product line on the coffee package, the "McCafe" font on the LOGO has become more upright, and the original underline has been removed, completely highlighting the LOGO itself, and slogan has become "Good is Brewing".

After new product upgrades and heavy investment, the number of McCoffee stores is also growing.

Xu Yingting, general manager of McDonald's China McCoffee business, said that the number of McCoffee stores in China has nearly doubled in the past six months. By April 2021, the number of McCoffee shops in mainland China has exceeded 1600, with more than 10, 000 baristas. It is expected that by the end of this year, the number of McCoffee stores will exceed 2000. By 2023, more than 4000 McCoffee stores across the country will provide high-quality, cost-effective handmade coffee.

Prior to this, McCoffee upgraded a brand new store in Xujiahui, Shanghai, which has an independent handmade coffee machine and a hand-brewed coffee bar. It is important to note that although the store is a new upgraded store, strictly speaking, this is actually a McDonald's restaurant, and now the number of McCoffee restaurants has grown so fast because of this business model.

McCoffee's new business model adopts the light asset model, and its core idea is to use the least capital (or the lightest assets) to pry the largest resources and earn the most profits.

Although McCoffee is an independent coffee brand, its opening mode is to set up an exclusive "handmade coffee bar" in McDonald's restaurant, that is, to make use of the business model of "shop in the restaurant". The brand-new McCoffee can use McDonald's stores to sell coffee. There is no need to open their own stores, use the space of existing McDonald's restaurants, set up separate coffee counters, and introduce professional coffee production equipment. Coffee is handmade by professional baristas.

At present, McDonald's has about 3200 stores in the Chinese market and is rapidly expanding with the goal of 500 a year, which undoubtedly provides a big advantage for the expansion of McCafe stores and greatly reduces material costs.

Based on the unique "in-store" model, McCoffee is also very particular about its products. McCoffee defines itself as high-quality, cost-effective handmade coffee, and high quality refers to hand-ground coffee. Judging from the existing scale of 1600, McCoffee, which uses semi-automatic coffee machines, has become the second largest handmade coffee chain in China, while high performance-to-price ratio is shown in price. The price of the brand-new upgraded McCoffee has not increased, and the price range of many types of coffee is still around 20 yuan.

From this point of view, McDonald's ambition is far more than satisfied with the fast food market, McCoffee's "small yellow cup" is also going to seize the coffee market!

* Image source: Internet