Korean coffee is expanding crazily in China, rising and falling in just one year.

Stores are closed, franchisees run away, Korean coffee brands continue to storm, exposing the problem of insufficient management control under the rapid growth of enterprise scale. According to RET Rui Yide's "Research report on the Development trend of Korean Coffee Shop in China", Korean coffee brands tend to join or co-operate as the main expansion mode, of which 10% of coffee accompany you and only 4% of zoo coffee. Wang Hongtao, director-general of the China chain Management Association, said that the joining model can achieve rapid expansion, but the operation risk is increased.

For example, if the coffee accompanies you and the zoo coffee adopts the single-store joining mode, the franchisee can operate a brand coffee shop with relatively high degree of freedom after paying the franchise fee, site selection audit and group training. Coffee shops with single stores have higher expectations for short-term profits, poor ability to bear losses, and lower default costs, which is also the reason why Korean coffee franchisees are frequently exposed to run away. In contrast, Pacific Coffee uses a single city exclusive agent, while Costa adopts a regional agency expansion model by "bundling" large enterprises, although it raises the entry threshold for partners, but gives the greatest protection to the brand image. It is understood that Pacific Coffee requires 10-15 stores per city, while Costa cooperates with Yueda Group and Hualian Group in the southern and northern markets.

It takes two years for the maintenance business to make a short-term profit.

There seems to be a contradiction between scale expansion and quality control in the chain industry, but raising the threshold for enterprises to join can reduce the risk of brand damage. For example, at the beginning of the opening of 7-11 in China, the conditions were almost harsh, and the franchisee could only take over the operation from the original "poor" stores, and the franchisee and helper needed full time. Although it deters some people, it reduces the operating risk and protects the brand image of the enterprise.

Back to the coffee market, China's coffee market has a huge space, which can be seen from the fact that the per capita annual coffee sales in Beijing, Shanghai and other first-tier cities in China are only 20 cups per capita, which is different from that in Britain and the United States. In the face of broad market prospects, there is nothing wrong with Korean coffee brands speeding up horse racing enclosures in China, but in the view of Ji Ming, the first president of the China Coffee Association, coffee shop operation has always been a slow process. He said that the franchise model of coffee chain brand promotion has led many people to see coffee shops as a tool to make money, but running a coffee shop is actually a process of training consumers to develop coffee drinking habits. It usually takes 2-3 years for a coffee shop to turn a profit from formal business, and operators need more patience to cultivate the market, rather than focusing on short-term profits.

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