After rolling out branded kiosks at third-party F&B outlets and retailers in 2024 Cotti Coffee is now launching its own low-cost convenience store concept
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A Cotti Coffee store in Longxinjinjie, Nantong, China | Photo credit: Cotti Coffee
Value-focused Cotti Coffee is seeking to open convenience stores in China in a bid to accelerate outlet growth and increase store-level profitability.
The new Cotti Coffee sites will maintain a coffee focus while selling convenience store staples such as ice cream, instant noodles, bottled drinks and meal deals, according to a Beijing Business Today report.
Founded by former Luckin Coffee executives Charles Lu and Jenny Qian, Beijing-based Cotti Coffee opened its first coffee shop in Fuzhou in October 2022 and rapidly expanded to reach 10,000 stores globally in October 2024 with an outlet in Doha, Qatar.
Cotti Coffee has an ambitious goal to reach 50,000 stores globally by the end of 2025 and has been diversifying its store network in China – where over 95% of its outlets are located – by embedding branded kiosks within third party convenience stores, F&B outlets and high street retailers.
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In October 2024, Cotti Coffee Chief Strategy Officer Li Yingbo said the value-focused had signed up more than 50 retail partners for the initiative, including convenience store chain Meiyijia, fast-food operator Wallace Food and budget hospitality chain Home Inn – adding a potential collective pool of 100,000 additional retail locations to tap into.
The strategy puts Cotti Coffee in direct competition with Tims China and Manner Coffee, which both operate in-store retail concessions.
Tims China has operated small-format Tims Express kiosks within Easy Joy convenience stores since August 2022 and has further bolstered its in-store concession network via partnerships with Chinese snack retailer Bestore, transit system operator Shanghai Metro, real estate firm Century 21 and home appliance retailer Haier.
Boutique coffee chain Manner Coffee opened its first dual-branded outlet with Chinese estate agent Lianjia in April 2024 with a first store in Putuo, Shanghai, and is expected to further scale the concept across Lianjia’s 6,000-store network.
In October 2024, Tims China CEO Yongchen Lu said the coffee chain could adjust its pricing strategy in China to remain competitive but will not be dragged into the RMB 9.9 ($1.36) price war initiated by Cotti Coffee and rival Luckin Coffee in 2023.
In November 2024, Yingbo said Cotti Coffee’s discount strategy will remain in place for a further three years as the coffee chain seeks to lower the consumption threshold for Chinese consumers and drive up per capita annual coffee consumption in the country.