Coffee consumption has entered the era of subdivision: talk about the profit of diffuse coffee

In the fast coffee consumption bombed by Starbucks, Pacific, COSTA and other well-known coffee chains, the Korean-founded coffee brand seems to be looking for another way to survive, a slow life and soft competitiveness dominated by environment and user experience.

It's not just coffee.

Previously, Xin Zixiang ran a Korean restaurant called Aijiangshan in Beijing. The reason for the transformation to open a coffee shop, Xinzi can be traced back to a business trip to Shanghai in Shangdao Coffee experience. "Shangdao Coffee can provide spacious booths where guests can play cards, games, and so on." this makes Xin Zi feel that coffee shops do not have to play small cards like Starbucks and COSTA.

At present, the coffee market is expanding at a rate of 18% per cent per year. Xin Zi, who has a keen business sense, has found that there is no shortage of good coffee in the market, but there is a lack of coffee shops that allow consumers to sit down and chat slowly. Aware of this opportunity, Xinzi spent two years visiting various cafes and finally set the style on nature and romance.

In order to emphasize the feeling of nature, Xin Zi Xiang "moved" the tree to the coffee shop, and even the walls were boldly decorated with red bricks, simple folding wooden chairs, high-backed French single sofas, American western style soft chairs, high-legged log bar stools, this seemingly "mash-up" style is intentional for "nature" in Xin Zixiang's view.

In order to enhance the sense of nature, spacious space is essential. "Coffee stores usually cost 400-500 square meters." Xin Zixiang said. Unlike Starbucks and other tables where up to three or four people sit around, some tables are even the size of a single bed for families of all ages to sit around.

The coffee is making its own "difference". Unlike Starbucks and other coffee chains that have to stand and wait after ordering, they will provide a bear, and consumers just need to sit down and wait for the food to be served. In addition, Xin Zi Xiang also moved the "kitchen" to the door and now makes muffins and sandwiches in the store, which is rare in other coffee shops. Xin Zi, who has been engaged in the catering industry for many years, knows very well that consumers prefer fresh food to better food than standardized food produced by factories.

There are few coffee shops of this style, and some stores were once so hot that they needed to wait in line. "ensuring the high quality of food is the most basic, and our core competitiveness is to provide consumers with the comfortable environment they want." Xin Zixiang said. At present, Man Coffee has opened 36 stores, including the stores under renovation, there are more than 60 stores.

The "secret" of 36 stores' profits

In two years, more than 60 stores have been amazing for the new brand, but in the business war, in addition to scale, profits are also regarded as heroes. "at present, 36 stores are profitable." Xin Zixiang said that the upfront investment of each store is about 2 million. However, the speed of cost recovery is also amazing. "of the 36 stores, half recovered all their costs within one year, while the other stores recovered all their costs within two years." Xin Zixiang said.

Behind this profitability, in addition to the unique environment, Man Coffee chooses some strategies that are different from its competitors. In Starbucks, Pacific and other stores, coffee is the main character. However, although the price of Man Coffee is comparable to that of Starbucks, a sandwich can be sold for 35 yuan and Chocolate Muffins for 38 yuan, which can undoubtedly drive up the unit price. Because of its unique decoration style, the consumer base here is more extensive than that of Starbucks. If on Saturdays and Sundays, you will find that there are many family customers made up of old people and children in the store, which is rare in express coffee shops. "

Now Xin Zi Xiang is planning a bigger cake. "my goal is to expand to more than 200 in first-and second-tier cities within two years, of which about 30% are directly operated stores." Xin Zixiang said. In the catering industry, location can even determine the life and death of a brand. Starbucks has a strong brand endorsement, Pacific Coffee behind China Resources, Man Coffee this newcomer does not have such a "backing". To this end, Xin Zi Xiang hopes to use the "strength" of partners to find a better location. "throughout our current background of these partners, there are from department stores, circulation and transportation, real estate development and other fields."

But in the eyes of the industry, it is a bit risky for a new brand to expand so quickly. Xin Zixiang believes that Man Coffee adopts the mode of direct operation and cooperation to expand, with Man Coffee accounting for 25%, 35%, and 65%, 75% of the store equity, which ensures the quality of each store.

"No enterprise can be 100% omnipotent, and all aspects of coffee will have to be upgraded in the future." According to Xin Zixiang's plan, in the future, spacious shops can be considered as a compound cultural center for customers to run salons, and a corner of the store can be set up to provide manicure services and gift packaging services.

Coffee consumption has entered the era of segmentation.

For a long time, coffee culture and its profit model have differences between Europe and the United States. The European coffee shop represented by France pays attention to personality and quality, while the American coffee shop represented by Starbucks is famous for its speed and convenience, and it has replicated quickly in the past 10 years, and occupied Japan, China and other Asian markets.

However, with the impact of the Internet, experiential consumption has once again become the focus of business attention, fast life, fast pace began to subdivide the slow life market. With the segmentation of the consumer market, the coffee culture and the operation mode of the store will face the "second change".