Beijing / CN. (coc) Cotti Coffee, started by Luckin Coffee founders Charles Lu and Jenny Qian, recently became a global sponsor of Argentina National Football Team. Since the inauguration of its flagship store in October 2022, Cotti Coffee now graces over 300 cities in five countries with more than 5,000 outlets, making it the fifth largest coffee brand worldwide.
In August 2023, Cotti Coffee announced its global expansion strategy, marking its formal entry into the international arena. Concurrently, it launched a global partnership recruitment initiative and has already established multiple outlets in South Korea, Indonesia, Japan, and Canada.
Since its establishment, Cotti Coffee has been driven by its mission of «enabling customers to enjoy a comfortable coffee lifestyle». The company is committed to providing customers with high-quality, cost-effective, and convenient coffee products, complemented by Western-style light meals and desserts. With its youthful and chic brand experience, Cotti Coffee has won the interest from its customers.
The brand’s store performance and validated business model underscore its rapid ascendancy in the industry. Cotti Coffee’s success can be attributed to a combination of strengths, including innovative business strategies, robust supply chain capabilities, an intelligent digital platform, and an unparalleled product and service experience.
Unlike traditional franchising or direct management models, Cotti Coffee has adopted an innovative partnership approach. Initially, the company forgoes any franchise-related fees, opting instead for a profit-sharing arrangement, aiming to share risks with its partners and maximize each party’s strengths. Additionally, Cotti Coffee has instituted a lifetime partnership system, ensuring the longevity of the business locations and sustainability of the business collaboration. If a partner chooses to exit, the company offers a depreciation buy-back option for the equipment, which significantly reduces the barriers for potential partners to enter and sustain their business. This model exemplifies a sustainable, century-long business model that is built to last.
For the international market, Cotti Coffee has introduced both single-store partnerships and regional partnership models, offering more flexible collaboration methods catered to the diverse needs of its partners. Under this arrangement, the company provides support in branding, supply chain, operations, and digital platforms. Partners can select the manner and scale of their collaboration, ensuring both modularity and adaptability. Regional partners benefit further from model store incentives, regional exclusivity, and revenue sharing from both store operations and expansion, thus empowering small enterprises and individual entrepreneurs.
Cotti Coffee boasts an integrated coffee bean roasting facility that combines research, production, and quality control, accompanied by a production facility for related materials. With an annual output of 45,000 tons, it stands as China’s largest individual coffee roasting factory. To further solidify its supply chain prowess, Cotti Coffee is in the preparatory stages of establishing coffee bean and raw material supply chain bases in South America, Ethiopia, Vietnam, and other regions. By amassing global top-tier resources, the company is building a robust foundation of global supply chain infrastructure and capability to support its international expansion.
Leveraging a fully digitalized platform, Cotti Coffee taps into its innate internet advantages. Customers can place orders online via the app and pick up in-store, eliminating the inconvenience of in-store queues and long wait times, and vastly improving in-store efficiency and service consistency. Moreover, through insights drawn from big data analysis, Cotti Coffee can offer personalized recommendations for its customers, offering a plethora of benefits.
Furthermore, Cotti Coffee consistently offers an innovative product and brand experience. Committed to offering coffee with great value for money, the company meticulously selects only IIAC Platinum and Gold Award-winning 100 percent Arabica coffee beans, ensuring premium quality in every cup. Beyond its dedication to timeless coffee classics, Cotti Coffee also boasts a variety of innovative drinks, including fan favourites such as Coco Cotti, Cheese Latte, and its Sparkling Cold Brew series. The offerings are revamped weekly, ensuring they meet the ever-evolving preferences of diverse consumers. Alongside its extensive beverage range, Cotti Coffee also features muffins, hotdogs, and other light meals as a parallel growth strategy to its coffee and beverage lineup. By presenting an ever-changing combination of food and drinks, Cotti Coffee fulfils the diverse situational needs of consumers, crafting products that are both a daily necessity and frequently desired.
With a keen understanding of coffee consumption trends, Cotti Coffee is committed to continuous innovation, broadening its product range, and adopting a «survival of the fittest» approach. Its goal is to consistently deliver high-quality, cost-effective, and convenient products to coffee enthusiasts. Concurrently, Cotti Coffee strives to fortify its strengths in branding, digitalization, and supply chain management, propelling small and micro enterprises and individual entrepreneurs towards effortlessly realizing their coffee business aspirations(Pics: Cotti Coffee).