COTTI COFFEE Opens Its First Store: Lu Zhengyao's Return to the Coffee Market

Today, according to Daily Economic News, former Luckin Coffee founder Lu Zhengyao and former Luckin Coffee CEO Qian Zhiya simultaneously announced on their WeChat Moments that COTTI COFFEE's first store has opened in Fuzhou IFC, with the caption: "The coffee dreamer team embarks on a new journey," and "The rally call has been sounded."

The brand is reported to be Lu Zhengyao's new entrepreneurial project, focused on all-day dining. The products offered include not only coffee but also baked goods, light meals, and alcoholic beverages. In the morning, users are offered coffee with Italian biscuits as an accompaniment; at noon, meals are provided; in the afternoon, snacks; and at night, drinks.

COTTI COFFEE belongs to Cotti Coffee (Tianjin) Co., Ltd., which was established on May 19, 2022. Headquartered in Tianjin with a registered capital of $100 million, its core management team comes from major new-economy enterprises such as Luckin Coffee, CAR Inc., and UCAR.

The name Cotti comes from the Italian specialty biscuits often served alongside coffee; Cotti is an extension and expansion of the coffee concept. COTTI COFFEE was destined from the beginning to be more than just a coffee shop, but a new pan-coffee lifestyle.

Management Changes

On October 19, the legal representative of Cotti Coffee (Tianjin) Co., Ltd. was changed. Wang Baiyin, Lu Zhengyao's Peking University classmate and former chairman of Luckin Coffee, withdrew, and was replaced by Qian Zhiya, Lu Zhengyao's former CEO at Luckin Coffee, as legal representative.

Lu Zhengyao's Entrepreneurial Journey

Lu Zhengyao is the founder and chairman of CAR Inc., as well as the founder and former chairman of Luckin Coffee. After Luckin Coffee became embroiled in a scandal involving an alleged $2.2 billion financial fraud in 2020, on June 27, 2020 Luckin Coffee announced that the board had decided to request Lu Zhengyao's resignation as director and chairman.

In the early morning of July 3, 2020, the board meeting did not pass the proposal for removal, and Lu Zhengyao continued to serve as director and chairman of Luckin Coffee. Then, on July 14, 2020, Luckin Coffee announced that Lu Zhengyao would no longer serve as chairman.

This is Lu Zhengyao's third entrepreneurial venture since his departure from Luckin Coffee. The first two were in the unfamiliar catering field, successively launching the noodle shop "Qu Xiao Mian" and the prefabricated-dish project "Shejian Hero." According to his plan, both were intended to develop into catering versions of "Luckin": starting with noodle shops and prefabricated dishes, then attracting more food and snack brands to join, ultimately creating an online app.

However, three months after "Qu Xiao Mian" opened, its expansion plan began to be significantly scaled back. The subsequently launched prefabricated-dish project "Shejian Hero" reached 6,000 intended franchise store signings nationwide in just four months. But Shejian Hero shared a similar fate to Qu Xiao Mian, with franchisees soon complaining that they could not make money, followed by news of store closures.

Return to the Coffee Market

After leaving Luckin Coffee and launching two ventures that were not particularly successful, Lu Zhengyao decided to return to the coffee market and founded COTTI COFFEE. Luckin Coffee marked Lu Zhengyao's highlight moment in the catering track, which is undeniable. When his team returned to coffee, it received significant attention. Without marketing, COTTI COFFEE became popular even before opening.

Five months have passed since its establishment, and COTTI COFFEE's first store has finally opened. A first store is not only a geographical first but also a statement of a brand's pioneering nature. It is reported that alongside the opening, COTTI COFFEE also announced that it would officially become the China regional sponsor of the Argentina national football team during the Qatar World Cup, which begins on November 21, 2022.

Future Expectations

Compared with Qu Xiao Mian and Shejian Hero, people have shown greater interest in and expectations for COTTI COFFEE. Whether it can become Lu Zhengyao's comeback venture and add another major player to China's coffee market remains to be seen.

Image source: Internet

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