Cafes in Korea expand rapidly

"the number of stores in mainland China is expected to reach 1000 by 2015 and become a listed company."

On March 8, the "Coffee accompany you" Chuhehan Street Store in Wuhan opened. Coffee accompany you (Shanghai) Investment Management Co., Ltd. Hubei District head of the Central China Regional Store Development Department revealed that at present, 16 stores have opened in Wuhan, and it is expected to expand 30 this year.

However, according to our reporter, among the 16 chain stores, only one on Garden Road is a direct store, and since its opening, the operation is not ideal.

The first caf é "Coffee with you" opened in Wuhan on November 12, 2013. the shop, located on Garden Road, is the only directly operated store in Wuhan so far, covering an area of more than 200 square meters, with a monthly rent of 70, 000 yuan and a daily operating cost of 6000 yuan.

The store opened with a "free mug with a Korean star signature of 58 yuan", which made the turnover reach 13000 yuan on the first day and remain at about 10, 000 yuan in the next four days. But since then, the daily turnover of the Garden Road store has only been maintained at about 4000 yuan. "it has been losing money all the time, and it is uneven every day." A clerk at the store revealed.

According to the person in charge of Central China of Coffee accompany you (Shanghai) Investment Management Co., Ltd., the second Chuhehan Street direct store of "Coffee accompany you" has been turned into a franchise store because of the requirements of the franchisee, so it will resell the direct store with an area of more than 500 square meters. It is the largest "coffee accompany you" in Wuhan.

It is understood that the 240sqm "Coffee accompany you" franchisee needs to invest 2.03 million yuan, and the franchisee and the company distribute the income according to 49% and 51% of the investment. based on the operating area of the Optical Valley World City store of more than 200 square meters, the franchisee of the store needs to invest 1.2 million yuan in the early stage.

However, the reporter visited and learned that there are nine stores in operation of "Coffee with you". Due to different locations, the operation of each store is also different. The operation of K11 shop, Guangbu Tundian and Lingjiao Lake shop is relatively good. However, the operation of 29th Street store in South Lake, Jiangxia store and Guanggu World City store is not ideal. According to the staff of the Optical Valley World City store, the daily sales of the store in February were as low as 200 yuan.

Compared with ZOO COFFEE, a coffee chain also from South Korea, with the same size of business area, the investment of "coffee with you" is 250000 more, only the equipment is single, and "coffee with you" is 180000 yuan more expensive.

In addition, "ZOO COFFEE" details the expected profit and loss, but "Coffee with you" does not. The head of the Hubei District of the store development department of the company's Central China region explained that because the conditions of the store location are different, the business situation will be different, and the company will calculate the profit and loss for the individual store in the later stage of operation.

Unlike Starbucks and COSTA, which have adopted a more cautious direct marketing model, Coffee with you has expanded fiercely in China, entering China in April 2012 and reaching more than 70 stores in June 2013. At present, there are nearly 300 stores in Beijing, Shanghai, Wuhan, Qingdao, Hangzhou, Chengdu, Shenzhen and other 16 provinces and nearly 20 cities.

On March 8, the "Coffee accompany you" Chuhehan Street Store in Wuhan opened. At the same time, the company said in its brand introduction that "the number of stores in mainland China is expected to reach 1000 in 2015 and become a listed company."

Since the opening of the first direct store in South Korea in March 2008, Coffee with you has exceeded 800 direct stores and franchise stores by July 2012. Because the "Coffee with you" chain is growing like cockroaches, the store is also known as "cockroaches with you" in South Korea.

In 2009, there were only 12 stores in the brand chain. By 2011, the number had soared to 451, and in September of the same year, it had expanded to 670. According to the company introduction provided to franchisees by Coffee accompany you (Shanghai) Investment Management Co., Ltd., the chain's expansion in South Korea also depends on franchisees. Of the 710 stores, only 22 are directly operated, accounting for 3%. Despite the fierce expansion, the growth rate of "Coffee with you" fell by 190% in the first two years and 83% in the third year.