Continue the encirclement and suppression! Cody wants to open 50,000 convenient stores and is desperate for lucky luck!

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On July 23, Kudi revealed to the public the plan to open 8000 convenience stores in the second half of the year and 50000 stores in three years, realizing the grand blueprint of "Kudi within 100 meters".

However, according to the latest data from Qihai Brand Monitoring on July 26th, Cuddy has 6841 stores in business and 872 stores closed. Although public data show that Cuddy announced more than 7000 stores at the end of 23, the current total is less than 8000.

When Lucky reached the scale of 20,000 stores, Cudy suddenly made bold words, which made onlookers wonder that these two brands with "the same roots" were going to compete again.

(photo taken from: Qihai Brand Monitoring)

In October 2022, in order to gain fame and compete for a place in the market, Cudy started a $9.9 coffee discount war. At the same time, the brand side in the expansion of the market is mostly close to lucky to open a store, the meaning is obvious, but also naturally attract the attention of the outside world.

Lucky, who was "close to his face" by Kudi, was forced by the situation and had to join the price war of 9.9 yuan. It's just that the flames of the competition spread to the entire coffee market, and Starbucks quietly lowered prices, the growth of Lucky Cafe backed by Honey Ice City stagnated, and countless offline coffee shops collapsed.

As for Cudy and Ruixing, who started the price war, they actually lost both sides in this fierce competition. So at the beginning of this year, Rui Xing took a step ahead of Kudi and slowly pulled out of this long-lasting competition by narrowing the exchange range of 9.9 yuan, and turned his battlefield with Kudi to a "point struggle."

In order to grab Kudi's spot ahead of time, Ruixing not only opened its new store in sunken cities, but also intended to increase store density in office buildings, schools, neighborhoods and other places in first-and second-tier cities, according to 36 Krypton. In just half a year, Lucky added 7754 stores, breaking through 20, 000 recently at a rate rarely seen in the industry.

Lucky not only spends high rents to open a store next to Kudi, which is 200 meters away, but also allows franchisees to open new stores within 500 meters of the old store, so as to occupy space in advance and achieve a surge in the number of stores, the report said.

Only the consequence of doing so is to directly halve the sales of some "encrypted" thousand-cup stores, which is a drag on the key "same-store sales" indicator in Lucky's financial report. It is reported that the first quarter of this year's financial results revealed that the index fell by about 20%. According to investors in the industry, this indicator was even worse in the second quarter.

As a matter of fact, Rui Xing's practice has self-destructed by 800, but the effect is quite good. Under the influence of Lucky's "encryption" action, the number of good locations for opening stores has decreased, coupled with the rental and decoration costs that need to be considered, it is difficult for Cudi to increase the pace of store expansion this year, with the data always maintained at about 6000 stores.

And according to people familiar with the matter, Lucky's approach not only made Kudi lose potential room for growth, but also curbed the volume of cups in Kudi stores. For Cudy, who hopes to seek new financing on a large scale, Lucky's counterattack is undoubtedly swift and powerful, and has no small impact on himself.

So in May this year, Cudy began to promote low-threshold stores, "COTTI Express", a convenience store based on convenience stores, restaurant chains and other existing stores, only need to occupy a counter to open, and the original staff can be trained to make coffee part-time.

According to the publicity of the brand side, the investment of this model is small and can greatly reduce rent, labor costs, etc., but also skillfully integrated into all kinds of formats and scenarios, the feasibility is extremely high. According to Interface News, more than 100 stores have opened in the two months since the launch of the model, and according to the recent number of stores monitored by the Qihai brand, the number of new stores in Cuddy has gradually increased from June to July.

However, this figure is a far cry from the "8000 convenience stores" set by Cudy, and even more far from the goal of "laying out 50, 000 stores in three years". In this "spot battle" with Ruixing, it will take time to see whether Cudy can achieve the results he wants and realize the vision promised to the outside world.

Picture from: Internet

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