Big shuffle! What can a cafe do to save itself?

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click on the attention| Daily Boutique Coffee Culture Magazine Coffee Workshop

There is no doubt that the coffee market is undergoing a new round of shuffling.

According to the statistics of red meal big data, as of October 29,2023, there are about 191,600 coffee shops nationwide. As of October 29, about 95,000 coffee shops have been added nationwide this year and about 44,000 coffee shops have been closed.

More than 40,000 data, both independent coffee shops, but also a lot of chain coffee brand franchisees figure.

In recent years, entrepreneurs have poured into coffee tracks. Everyone wants to be a boss, and for today's young people, opening a cafe may be the most ideal form of entrepreneurship. Ask who doesn't want to own a shop of their own, with the desired decoration, bearing a cavity "poetry and distance". Realistically speaking, coffee shops are also a low-threshold entrepreneurial option. At its simplest, a barista part-time shop assistant can open a business, and the rest of the cost is nothing more than basic materials such as coffee machines and beans and rent.

Because it is not difficult, coffee shops open more and more. However, the life cycle of new stores is surprisingly short. According to relevant media reports, many new stores, especially individual stores, often only operate for a short period of 2 to 3 months before closing and leaving.

The reason may be inseparable from one sentence: tycoons fight, mortals suffer.

Ruixing Coffee opened the price war with a low price of 9.9 yuan, followed closely by Kudi Coffee, which copied the low-priced route, and together with the former killed all sides in the coffee market. In order to compete for customers, many independent coffee shops have to fight a price war. From 9.9 yuan a cup, it has been reduced to 3.9 yuan a cup... coffee prices are not the lowest, only lower.

Some insiders calculate: Take the simplest ice American as an example, the cost of beans is 2 yuan, and then add equipment depreciation and packaging expenses, the cost of a cup of coffee is 5~6 yuan. Plus rent, labor, a cup of coffee gross profit at least 60% to make money, 8.8, 9.9 yuan play for individual coffee shops, is "suicide management."

In addition to the price roll, homogenization is also one of the reasons for the demise of boutique coffee shops. Many cafes in ins, literature, Japanese style and other styles after the selection of a no longer have their own characteristics, almost the decoration, almost the menu, almost the flavor, can not provide consumers with a "you can not" reason, in the face of lower prices, naturally will lose competitive advantage. Therefore, some netizens advised: "There is no love for coffee, no good technology, no understanding of coffee, how to run your own shop..."

In addition to independent coffee shops that are not competitive enough, many of the 44,000 closed coffee shops are chain coffee brand franchised stores.

Some stores are closed because of the confusion in the internal management of coffee brands, resulting in entrepreneurs continuing to lose money and unable to make profits. According to media reports, the number of closed stores of a certain brand has reached more than 39%, which is equivalent to one of every three closed chain brand stores. Many people join popular coffee shops with the dream of "cutting leeks and getting rich". Unexpectedly, they encounter problems such as improper site selection, chaotic management of joining, and less than expected daily sales. They can only transfer with tears.

There are also some entrepreneurs who fall into the trap of counterfeit brands and cannot operate normally after being cheated. This pseudo-joining chaos has also become one of the important reasons for the closure of a large number of coffee shops.

Then again, now that we have identified the common reasons for coffee shop closures on both tracks, can we work hard on these aspects to create a competitive advantage?

For independent coffee shops, in the context of "low-cost money-burning marketing" of chain coffee shops, if you want to stand out, you need to find a balance between price and features. It is necessary to optimize the price setting to a certain extent to make up for the "short board"; it is also necessary to select the subdivision track: there are so many choices for consumers, so it is necessary to create characteristics to "circle" the target group, for example, the store positioned as community coffee, and its consumers are pursuing the cost-effective "neighbor coffee", which is good to drink and inexpensive, convenient to drink at any time.

For chain brand franchisees, it is necessary to recognize the pearl, accurately define the brand to join and the appropriate site selection, encounter the wrong signs in time to withdraw, timely stop loss.

In general, although the road is not smooth, only those coffee shops that can adapt to market changes and constantly innovate and progress can stand in this market.

Image Source: Network

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