Vol.06 Why can MANNER Coffee achieve delicious taste, affordability, and chain operation?

Vol.06 Why can MANNER Coffee achieve delicious taste, affordability, and chain operation?

商业就是这样
27:03
2021年3月17日
cn

Key

  • Manner Coffee: A rapidly expanding coffee chain brand known for its high cost - effectiveness.
  • The Impossible Triangle: It refers to the fact that it's difficult for coffee shops to be inexpensive, taste good, and have large - scale chains simultaneously.
  • Anchoring Effect: The reference for consumers' perception of commodity prices, usually set by market leaders.
  • Cup Output: The number of coffee cups sold by a coffee shop within a unit of time, which directly affects profitability.
  • Quality Control: Product quality control. Manner performs well in terms of coffee beans, milk, and production processes.

Abstract

This episode of Business as It Is focuses on the coffee brand Manner Coffee, which has risen rapidly in recent years. With the unique advantage of being “inexpensive, good - tasting, and capable of large - scale chains”, Manner has broken the common “Impossible Triangle” in the coffee industry and quickly captured the market. The two hosts deeply analyzed the key factors contributing to Manner's success from aspects such as its place of origin, location strategy, pricing strategy, operation mode, and quality control management. Manner's rise not only challenges the market positions of traditional coffee giants like Starbucks but also provides new development ideas for other coffee brands. In the future, how Manner maintains quality control during expansion and copes with competition will be the key to its continued success.

Insights

Through the case analysis of Manner Coffee, we can see that against the backdrop of consumption upgrading, consumers' demands for coffee are changing. They are no longer merely satisfied with brand premiums and social spaces but pay more attention to the quality and cost - effectiveness of the coffee itself. Manner Coffee has seized this market opportunity. By optimizing the cost structure, improving operational efficiency, and ensuring product quality, it has successfully stood out in the highly competitive coffee market. This is of great reference significance for other brands that want to enter or are already in the coffee market.

Views

01 "Breaking the 'Impossible Triangle' is the Key"

Manner Coffee's ability to be inexpensive, good - tasting, and have large - scale chains simultaneously is its core competitiveness for success.

02 "The High - Cost - Effectiveness Strategy is the Winning Formula"

By optimizing the cost structure and improving operational efficiency, Manner Coffee has achieved a pricing lower than the market average, attracting a large number of price - sensitive consumers.

03 "Quality Control is the Guarantee for Long - Term Development"

Manner Coffee strictly controls the selection of coffee beans, the roasting process, the production technology, and the selection of milk, ensuring the stability and improvement of product quality.

In - depth Analysis

Is Manner Coffee the "Catfish" in the Shanghai Coffee Market?

In recent years, the Chinese coffee market has been surging with new brands emerging one after another. Among them, Manner Coffee has rapidly risen with its unique business model and high - cost - effectiveness products, becoming a dark horse in the coffee markets of Shanghai and even the whole country. How did this coffee brand, which originated from a small store on Nanyang Road in Shanghai, stand out in the highly competitive market? And what challenges has it brought to traditional coffee giants?

Starting from a Small Store and Breaking the "Impossible Triangle"

The story of Manner Coffee began in 2015 when founder Han Yulong opened a window store of only two or three square meters on Nanyang Road in Shanghai. Different from the popular specialty coffee shops at that time, Manner Coffee started with the slogan of “affordable specialty coffee”. An Americano cost 15 yuan, a latte cost 20 yuan, and customers could get a 5 - yuan discount if they brought their own cups. Such a pricing strategy quickly caught the attention of office workers in the neighborhood. In the coffee industry, there has always been an “Impossible Triangle”: it's difficult to have inexpensive, good - tasting coffee and large - scale chains at the same time. Either the price is high and the quality is good but difficult to expand, or the price is low but the quality is hard to guarantee. Manner Coffee has broken this curse. It has ensured the quality of coffee, achieved large - scale chain expansion, and maintained relatively low prices.

Location Strategy: Avoiding the Competition and Occupying Office Buildings

Manner Coffee also has a unique location strategy. In the early days, it avoided the highly competitive commercial areas and chose to open stores near office buildings. Office workers in office buildings have a rigid demand for coffee and stable consumption habits. With its high - cost - effectiveness advantage, Manner Coffee quickly captured this part of the market. As the brand's popularity increased, Manner Coffee also began to enter shopping malls. However, different from traditional coffee brands, Manner Coffee's stores are usually small in area and have a simple decoration style. This asset - light operation model reduces rent costs and enables it to expand more quickly.

Operation Mode: Efficiency First, Cutting Costs and Increasing Revenue

Manner Coffee focuses on efficiency in operation. It has launched a mini - program ordering function, allowing customers to place orders on their mobile phones in advance and pick up their coffee when they arrive at the store, greatly reducing the waiting time. At the same time, Manner Coffee's stores are usually equipped with multiple baristas who work in an assembly - line mode to improve the cup - output efficiency. In terms of cost control, Manner Coffee has also made great efforts. It reduces the cost of raw materials through large - scale procurement of coffee beans and milk. Meanwhile, most of Manner Coffee's stores have no seats, reducing rent expenditure.

Quality Control: Striving for Excellence and Ensuring Quality

Manner Coffee has not sacrificed quality in pursuit of low prices. It insists on using high - quality coffee beans and milk and makes coffee with semi - automatic coffee machines. Manner Coffee's baristas have all received professional training to ensure the quality of each cup of coffee. Manner Coffee also adjusts the taste and formula of coffee continuously based on market feedback. For example, it once launched a new product called “Shanghai Latte” using the high - end milk product line of Bright Dairy, which has a better taste.

Challenges and the Future

Manner Coffee's success is not without challenges. As the number of stores increases, ensuring the consistency of quality control will be a major problem it faces. At the same time, Manner Coffee also faces competition from other coffee brands. Brands like Luckin Coffee and Tim Hortons are also accelerating their expansion, trying to seize market share. In addition, Manner Coffee's management model is also being tested. As the company grows in scale, establishing an efficient management system will be the key to its sustainable development. Despite facing many challenges, Manner Coffee still has broad development prospects. The Chinese coffee market has huge potential, and consumers' demand for high - cost - effectiveness coffee is also growing. As long as Manner Coffee can maintain its unique advantages and keep innovating, it is expected to become a leader in the Chinese coffee market.

Forward - looking Thinking

Manner Coffee's rise has brought new vitality to the Chinese coffee market. It has broken the monopoly of traditional coffee brands and provided consumers with more choices. In the future, the Chinese coffee market will show a more diversified development trend. In addition to high - cost - effectiveness brands like Manner Coffee, more coffee brands with characteristics and innovations will emerge. These brands will jointly promote the prosperous development of the Chinese coffee market.

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