As early as 2021, Shanghai Auntie launched coffee products in some stores. The current unit price of "Shanghai Cafe" is generally 10-15 yuan. Recently, a reporter from Nanduwan Financial News learned that Shanghai Auntie’s coffee brand “Shanghai Coffee” will officially operate in

2024-08-30 09:21:05 entertainment 8979℃

As early as 2021, Auntie Shanghai launched coffee products in some stores.

The current unit price of "Shanghai Cafe" is generally 10-15 yuan.

Recently, a reporter from Nanduwan Financial News learned that Shanghai Auntie’s coffee brand “Shanghai Coffee” will officially operate independently and open to franchises. After the early testing of the store-in-store "Shanghai Coffee" and the first independent coffee shop "Shanghai Coffee Oriental Latte", the price of the independently operated "Shanghai Coffee" drinks was set at 10-15 yuan, which is slightly lower than the main store. Brand Shanghai Auntie.

In March this year, Shanghai Aunty upgraded its new brand "Light Enjoy Edition" to "Tea Waterfall", aiming to benchmark Mixue Bingcheng and target the sinking market. With the independent operation of Huca, the number of beverage brands under Hushang Aunty will increase to 3.

Shanghai Auntie submitted its Hong Kong stock listing application in February this year. Its prospectus expired on August 14 and has not yet resubmitted its prospectus. Can tea in the left hand and coffee in the right hand help the aunt in Shanghai go public smoothly?

Shanghai Cafe sets up test stores and lowers catering prices

Nanduwan Financial News reporter learned from the Shanghai Aunty Investment Promotion Department that recently, "Shanghai Cafe" has officially started to operate independently, and has begun to test the water on a small scale and open up franchises, and will officially open it next year Join.

The manager of the investment promotion department of Shanghai Aunty told a reporter from Nanduwan Financial News that before, "Shanghai Cafe" was mainly opened in Shanghai Aunty's store. It was a "one store with two openings" and had no independent decoration or door. Now it is separated from Shanghai Aunty. Become an independent coffee brand. "Shanghai Cafe" will focus on coffee + snacks, with a unit price of 10-15 yuan, a minimum initial franchise fee of 150,000 yuan, and a minimum store area of 10-15 square meters.

In 2021 and 2022, Shanghai Auntie launched several coffee products such as thick milk latte, raw coconut latte, and fresh lemon American style in some stores. At the beginning of 2023, Shanghai Aunty will increase its efforts in the coffee business. At that time, it integrated the "Shanghai Auntie" store with the "Shanghai Cafe" brand and products. The store had two ordering systems. If consumers wanted to drink coffee, they had to order through "Shanghai Cafe" System entry.

"Shanghai Cafe", which operates as a shop-in-shop, initially priced its drinks at 12-18 yuan. However, after just a few months, it lowered the price. The current price is 6.6 yuan-13.9 yuan. At the same time, it also Bread, cakes and other snacks are provided. According to Narrow Gate Restaurants, as of August 2, the number of "Shanghai Cafe" stores in the store-in-store format was 1,878.

At present, "Shanghai Cafe" has only one independent test store in the country, which is a company-operated store and is an independent brand of "Shanghai Cafe". In January this year, this independent coffee shop "Shanghai Coffee Oriental Latte" opened in Shanghai. The "Shanghai Coffee·Oriental Latte" store offers Shanghai special blends, tea coffee, classic coffee, soe series and other drinks. It also sells breakfast sets and baked snacks. There are more than ten seats inside.

However, after "Shanghai Cafe·Oriental Latte" has been operating for a period of time, its prices have also been significantly reduced. At the beginning, the price of its drinks was concentrated between 16-23 yuan, and more than half of the drinks were above 18 yuan. At present, the overall price of its drinks has dropped. Moved below 16.8 yuan, of which drinks priced at 14.8 yuan and below accounted for more than 91.67%. Its Shanghai-style latte, originally priced at 23 yuan, is now priced at 16.8 yuan, and its Jasmine Longjing latte, originally priced at 18 yuan, is now priced at 13.8 yuan.

It can be seen that after testing, Hushang Auntie adjusted the pricing of "Huca" products to between 10-15 yuan, which is slightly lower than the main brand Hushang Auntie. The price of Auntie’s drinks in Shanghai ranges from 8 to 22 yuan, of which drinks priced at 15 yuan and below account for nearly 60%.

Many tea drinks have established sub-brands

Want to get a share of the coffee market

Compared with the store-in-store model, guest consulting partner Li Yingtao is more optimistic about the independent operation of "Shanghai Coffee". He pointed out to reporters from Nanduwan Financial News that the store-in-store model may reduce costs and convert old customers in the short term, but in the long run, fierce competition in the coffee market will require the brand to be extreme. Because the store-in-store model needs to match the main brand Hushang Auntie, it is difficult to achieve the ultimate in the coffee field and lacks competitive advantages.

However, Li Yingtao also believes that "Shanghai Cafe" also faces transformation challenges when it transitions from a store-in-store to an independent store. The main risks come from brand recognition, customer drainage challenges, increased operating costs, and systematic changes in operations. "Shanghai Cafe" is the best After successfully building a template store, expand further.

As for the price reduction of "Shanghai Cafe", Li Yingtao pointed out that in recent years, consumers have become more rational and price wars have become the main theme of the market. Coffee, tea and catering brands have cut prices to adapt to the fiercely competitive market and consumer rationalization trends. In addition, the brand image of Shanghai Auntie cannot support the high price positioning, so the price can only be reduced. From the perspective of coffee market size, the main price zone of "Shanghai Coffee" has the largest market size, and competition is also extremely fierce.

Lin Yue, chief analyst of Lingyan Consulting Management, told a reporter from Nanduwan Financial News that the domestic coffee market has entered the 20 yuan price zone. Aunts in Shanghai found that selling coffee above 18 yuan or 20 yuan was impossible, so they had to lower prices. If you want to sell coffee at a high price, you need to have three elements. First, the store environment and atmosphere can keep up with the supporting facilities. Second, there are elements such as co-branding and brand marketing. Third, the product itself has enough innovation and materials.

At the price range of 10-15 yuan that "Shanghai Coffee" targets, its main competitors include Luckin, Kudi, Nova Coffee, etc. In addition to grabbing users from these brands, Huca also needs to compete for franchisees from them.

The number of Ruixing stores exceeded 20,000 in July this year. According to Narrow Door Restaurant, as of August 2, the number of Kudi stores was 7,038 and Nova Coffee had 1,134. In order to expand its scale, Kudi also lowered the entry threshold and launched a convenience store or store-in-store model. This store type only requires a counter of less than 2 square meters and an initial start-up capital of only 60,000 yuan. Kudi revealed at the end of July that it would open 50,000 convenience stores within three years, "within a hundred meters of Kudi."

The tea brands that want to take a share of the coffee market are not only Hushang Auntie, Mixue Bingcheng, Tea Baidao , Chayan Yuese, and Heytea all already have coffee sub-brands.

Mixue Bingcheng, which was the first to establish a coffee track, has the largest number of stores of its coffee sub-brand Lucky Coffee, but its development has not been smooth in recent years. Nanduwan Financial News previously reported that Lucky Coffee is closing a large number of stores. As of August 2, it has opened 576 new stores and closed 491 stores this year, with a total of approximately 2,890 stores.

Yuanyang Coffee, a coffee sub-brand with a pleasant tea appearance, was launched in August 2022, continuing its consistent direct operation model. As of August 2, the number of Yuanyang Coffee stores was 102. At the end of last year, Chabaidao launched its first coffee sub-brand "Kahui", while Heytea launched a tea and coffee brand "Magpie Coffee" in Shenzhen. However, Magpie Cafe has closed down at the end of July this year, while Kahui only has one store and is not open for franchising.

Behind the multi-brand operation of Shanghai Auntie:

Performance lags behind that of Tea Baidao Ancient Tea

With "Shanghai Cafe" about to operate as an independent brand, the beverage brands under Shanghai Auntie will officially increase to 3 - Shanghai Auntie, Tea Waterfall, Huca.

In March this year, Shanghai Auntie officially launched the affordable tea brand Tea Waterfall. Tea Waterfall’s many drinks are priced below 10 yuan, targeting the sinking market and student groups, and are accused of trying to copy Mixue Bingcheng. Not only are the two similar in positioning, but the milk ice cream sold in the Tea Falls store is 2 yuan a bottle and lemonade is 4 yuan a glass. These are Mixue Bingcheng's flagship products.

At the beginning of last year, Shanghai Auntie once shouted the slogan Wandian, but judging from its actions this year, its market expansion ideas seem to have turned to multi-brand operations.

At the beginning of last year, at the National Partner Conference, Shanghai Auntie revealed that it plans to add 3,000 stores in 2023. The number of operating stores is expected to exceed 8,000 by the end of the year, with more than 10,000 contracted stores. However, this year is already halfway through, and the number of Auntie stores in Shanghai still has not exceeded 10,000. Narrow-door restaurants show that as of August 2, the number of Shanghai Aunty stores nationwide was 8,449.

At the new tea seminar held by Nanduwan Financial Society in July, the relevant person in charge of Shanghai Aunty once revealed, “Although many brands in the industry have shouted the slogan of Wandian before, the trend of the industry has actually changed from the pursuit of Quantity turns to pursuit of quality.”

As the fourth new tea beverage company to submit a listing application and focus on the franchise model, Shanghai Auntie’s performance lags behind other brands. In the first three quarters of 2023, the revenue of Shanghai Auntie, Mixue Bingcheng, and Guming were 2.535 billion yuan, 15.393 billion yuan, and 5.571 billion yuan respectively; during the same period, the net profits of Shanghai Auntie and Mixue Bingcheng were 3.24 billion respectively. billion, 2.401 billion yuan, Gu Ming’s adjusted net profit was 1.045 billion yuan. For the whole year of 2023, Chabaidao’s revenue was 5.704 billion yuan and net profit was 1.151 billion yuan.

Although the price of Shanghai Auntie’s drinks is close to that of Gu Ming and Cha Baidao, and the store size is similar to Cha Baidao, the data shows that consumers obviously prefer Gu Ming and Cha Baidao. According to the prospectus previously submitted by Mixue Bingcheng, in the first three quarters of 2023, Guming, Chabaidao, and Hushang Auntie had approximately 8,600, 7,500, and 7,300 stores respectively. In nine months, Gu Ming and Cha Baidao sold 900 million and 700 million cups of drinks respectively, while Shanghai Auntie’s sales volume was 500 million cups.

Industry analysis

Multi-brand operation strategy is a double-edged sword

Lin Yue told reporters from Nanduwan Financial News that Shanghai Auntie no longer emphasizes the scale of ten thousand stores, which is related to the bottleneck in the development of its main brand. If a store expands on a large scale and cannot show much benefit, it will make management more difficult. The development of multiple brands in Shanghai Aunty is mainly to solve the problems of brand aging and product homogeneity. However, if the new brand does not make enough differentiation, it will be difficult to break the new curve. The multi-brand operation strategy of tea beverage companies is a double-edged sword. The advantage is to find new growth curves and models through trial and error. The disadvantage is that these attempts may not work and will cause resource dispersion and waste.