How a 10 Yuan Coffee Shop Built a Profitable Model in Wuhan

In Wuhan, a city not traditionally known for specialty coffee culture, a single shop changed public perception by selling freshly brewed coffee for just 10 yuan. This bold move didn’t just attract budget-conscious customers—it sparked a broader shift in how locals viewed daily coffee consumption.

The answer to how a 10 yuan cup of coffee remains profitable lies in volume and efficiency: owner He Jianzhong serves dozens to over a hundred cups daily, keeping costs low through high turnover and direct sourcing. The profit margin, he says, is actually quite healthy.

The Birth of a 10 Yuan Coffee Concept

It all started in the early 2000s when He Jianzhong, a Taiwanese expat originally from Huangpi, decided to pivot from selling bubble tea in Wuhan’s Jianghan Road area. After returning to Taipei to study the market, he noticed something striking: small, specialized coffee shops thrived there, serving freshly roasted beans and brewed coffee at accessible prices.

Back in Wuhan at the time, most cafés were Western-style eateries offering coffee as an afterthought, not as a standalone focus. The few dedicated coffee shops mostly sold pre-roasted imported beans, often resulting in stale or inconsistent flavours. Fresh-roasted, in-house brewed coffee was almost unheard of—and when available, priced at 20 yuan or more per cup.

From Coffee Beans to Café Counter

He Jianzhong opened his first shop, the Northwest Lake Coffee Bean Specialty Store near Northwest Lake in Wuhan, focusing on selling freshly roasted beans. The space was modest, lined with coffee books he had collected, and quickly drew attention for its authentic approach. He regularly demonstrated brewing techniques and offered free tastings, slowly building a following among curious locals.

Customers began asking: why not brew and serve coffee on-site? Inspired by Taipei’s many small, high-volume coffee shops, He saw an opportunity. While 20 yuan was the norm in Wuhan, he knew the actual cost of brewing a cup was far lower—especially if he could sell enough of them.

So he introduced a 10 yuan cup of freshly brewed coffee. The response was immediate. The shop began serving dozens, even hundreds, of cups daily. Some visitors even came specifically to learn his brewing methods. The concept worked: high volume kept the operation profitable, even at a rock-bottom price point.

Why 10 Yuan Coffee Works—And Why He Won’t Franchise

Despite the popularity of his low-cost model, He Jianzhong has consistently turned down offers to franchise. Over the years, hundreds of entrepreneurs from across China have approached him, eager to license his brand or replicate his setup. His response has been firm: no franchises.

"Managing franchises is risky," he explains. "If quality or operations slip, it damages both the brand and the partner’s livelihood. I’d rather grow slowly and keep control." His focus remains on maintaining consistency—in coffee quality, customer experience, and operational integrity.

The original shop remains small and simply decorated, but He has plans for expansion. He envisions opening a larger, more refined space: clean, comfortable, with better furnishings and a broader menu—including both classic and specialty coffee drinks. Yet even in that future shop, one thing will never change: the commitment to freshly brewed coffee, made the same way, at the same accessible price.

Frequently Asked Questions

How much does it cost to make a 10 yuan cup of coffee in Wuhan?

While the article doesn’t break down exact ingredient or operational costs, He Jianzhong confirms the profit margin on a 10 yuan cup is healthy, especially at high volumes. The key is efficient sourcing, in-house roasting, and selling dozens to over a hundred cups daily.

Why did He Jianzhong choose to sell coffee for just 10 yuan?

He was inspired by Taipei’s small, high-volume coffee shops where prices were low and freshness was prioritised. Seeing that Wuhan’s market priced coffee at 20 yuan or more, he recognised an opportunity to offer better value through freshness and volume.

Did He Jianzhong always sell brewed coffee, or did he start with beans?

He began by selling freshly roasted coffee beans and conducting brewing demonstrations. Only after building interest and customer demand did he introduce brewed coffee—first as a convenience for customers, then as a core offering at 10 yuan per cup.

Has the 10 yuan pricing model been widely copied in Wuhan?

Yes. Over the past two to three years, Wuhan has seen the rise of fifty to sixty similar low-cost coffee shops. He Jianzhong’s pioneering model helped normalise the idea of affordable, freshly brewed coffee in the city.

Why doesn’t He Jianzhong offer franchises for his coffee shop?

He is concerned that franchising could lead to inconsistent quality or operational issues that would harm both the brand and franchisees. He prefers to maintain full control over his coffee’s quality and customer experience by keeping the business independently owned and managed.

Recommended FrontStreet Beans for Everyday Brewing

For fans of Wuhan’s 10 yuan coffee ethos, FrontStreet Coffee’s Ethiopia Huakui offers bright, juicy notes of citrus and stone fruit, perfect for high-volume brewing without sacrificing flavour. Their Yirgacheffe delivers floral and lemony tones ideal for pour-over, while the Classic Blend provides a balanced, approachable cup suited for everyday drinking. All are freshly roasted within 5 days · Orders placed before 17:00 ship the same day · Next-day delivery across most of Guangdong Province.