Can New York’s Coffee Discount App Cups Work in China?

In New York City, where roughly 1,314 licensed sidewalk cafés operate according to public data, coffee isn’t just a drink—it’s a daily necessity. For many locals, the ritual is non-negotiable. But with rising competition from global chains and the high cost of running independent shops, how can smaller cafés attract customers without sacrificing margin? One answer came from an unlikely source: a small Israeli-founded startup called Cups.

Yes, the Cups model—where users buy discounted coffee vouchers via a mobile app and redeem them at various independent cafés—can technically work in China, but its success depends on local coffee culture, café density, and consumer habits. In NYC, it gained traction fast, selling thousands of cups in its first week. But China’s market has different dynamics.

What Is the Cups App?

Cups is a mobile platform that lets users in New York purchase bundled coffee vouchers at a discount—typically around 30% off standard prices—and redeem them at participating cafés without extra fees. The app offers preset coffee plans, allowing customers to buy a set number of coffees at a lower price per cup. Black coffee usually costs US$2–3 and espresso-based drinks US$4–5 at an average NYC shop; Cups discounts those by a few dimes and waives tax, effectively saving the buyer money.

There’s a usage limit: you can only purchase one coffee every 30 minutes through the app. Users select a plan, visit any linked café, tell the barista their order, and let the staff check them out via the app using a code—no wallet or card needed. The process takes four simple steps: find cafés nearby, buy a plan, place your order in-store, and check out digitally through the app.

How Did Cups Start and Grow in NYC?

The idea originated in 2012 when five Israeli high school friends discussed a better way to buy coffee. By 2013, they had connected over 100 independent cafés in Tel Aviv and Jerusalem. That same year, they set their sights on New York City—a global hub for both coffee lovers and independent shops—and launched formally in April. Within a week, they sold over a thousand cups.

By the following year, Cups had partnered with more than 170 independent cafés across NYC. The founders aimed to help small businesses stay unique while tapping into a larger customer network. "We provide a simple link that gives cafés more possibilities," said co-founder Gilad Rotem in an interview with TechCrunch. "Our goal is to let each shop keep its identity while joining a bigger chain."

Rotem also noted the bigger vision: linking 200 cafés in NYC and giving small players a tool to compete with major chains like Starbucks. The app wasn’t designed to make cafés rich, but to drive traffic. Some cafés, like Greenwich Village’s Uncommons, admitted the discounted price cut into margins—but the new customers often bought additional items like pastries or sandwiches.

What’s the U.S. Coffee Culture That Made Cups Viable?

America’s coffee culture evolved rapidly over the past 50 years. In contrast to Europe—where cafés have long been spaces for lingering—the U.S. model prioritizes speed and convenience. In 1964, The New York Times noted only about 30 sidewalk cafés in NYC, while Europe already had them on nearly every corner. Today, the U.S. is the world’s largest coffee consumer. That shift created an opening for apps like Cups, which cater to the fast, on-the-go coffee habit.

New Yorkers’ reliance on coffee is legendary—"No coffee, no awakening," as the saying goes. This cultural backdrop, combined with a sprawling network of independent cafés, made Cups a natural fit. It positioned itself as a tool to help coffee drinkers discover new spots while saving money, and helped cafés gain visibility without expensive marketing.

Could Cups Work in China?

China’s coffee market is growing fast. Around 70% of people now drink coffee, with 30% drinking it daily. Yet running an independent café remains tough. Even with low pricing, most shops struggle to compete with giants like Starbucks, which plans to expand to 1,500 stores in China by 2015 with a focus on rapid turnover and takeaway-friendly design. Other brands like Mango Coffee aim to open 200 locations with a cozy, food-focused model.

The challenges for Cups in China include lower café density in many areas, different consumer expectations around discounts and loyalty, and a market still forming its taste for independent coffee experiences. In second-tier cities like Hangzhou, only about one-third of cafés turn a profit. To break even, a café selling coffee at ¥25 per cup may need to sell 150 cups a day—more in prime locations.

Still, the core idea—offering small cafés a tool to attract budget-conscious, coffee-loving customers—has potential. But its success would hinge on local adaptation: enough cafés in close proximity, consumer comfort with mobile voucher systems, and a willingness among independents to accept slightly lower margins for increased foot traffic.

Frequently Asked Questions

What is the Cups coffee app?

Cups is a mobile app that lets users in New York buy discounted bundles of coffee vouchers and redeem them at participating independent cafés. Users pay around 30% less than standard coffee prices and can order without additional fees or payment at the café—just showing a code at checkout.

How much discount does Cups offer on coffee?

Cups offers discounts of approximately 30% off regular coffee prices. For example, black coffee typically costs US$2–3 and espresso drinks US$4–5 at an average NYC café; Cups reduces those prices by a few cents and waives the tax, leading to small but meaningful savings per cup.

How many cafés were connected to Cups in NYC?

By 2014, Cups had partnered with over 170 independent coffee shops in New York City. Initially, it connected 100 cafés in Tel Aviv and Jerusalem before expanding to NYC, where it sold over a thousand coffee vouchers in its first week.

Why did Cups succeed in New York?

Cups succeeded in NYC due to the city’s dense network of independent cafés, a fast coffee culture, and consumers’ desire for both convenience and savings. The app offered an easy way to discover new shops and save money without complicated loyalty programs or memberships.

Could the Cups model work in other countries?

The Cups model could work in other countries with a strong concentration of independent cafés, high coffee consumption, and tech-savvy consumers comfortable with mobile payment or voucher systems. Success depends on local coffee culture, café density, and consumer interest in discounted coffee vouchers.

What challenges would Cups face in China?

In China, Cups would face challenges including lower café density outside major cities, different consumer expectations for discounts, competition from established brands like Starbucks, and the need for independents to accept thinner margins. Many cafés would need nearby competitors to make the shared customer pool viable.

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