What Do Independent Coffee Shops Compete With When Located Near Luckin and Starbucks?

The Rise of Independent Coffee Shops in a Competitive Market

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Coffee shops are now ubiquitous everywhere, and their numbers continue to grow. The phenomenon of having 10-20 coffee shops on the same street continues to unfold! The number of independent coffee shops has also grown accordingly. According to data, since 2022, independent coffee shops have accounted for 72% of the total number of stores nationwide.

Recently, data reported by China Beverage Express shows that in the same area, if there's a Luckin Coffee, it takes away more than 50% of the revenue. If Starbucks, Manner, and other tea beverage brands are also nearby, they take away another 80% of the remaining share.

Obviously, the independent coffee market has reached a competitive stage where scale and brand matter, and it's not so easy to surpass coffee giants. However, compared to the standardized operations of chain coffee shops, independent coffee shops offer greater flexibility and personalization.

What Do Customers Value in Coffee Shops?

When you walk down a street full of coffee shops and choose to buy a cup of coffee, what do you value more? Price? Taste? Service? Comfortable environment? Or brand recognition? Returning to the rational and emotional aspects of life, in the face of such complex choices, perhaps what people lack most is a cup of coffee that offers both warmth and value.

Common Reasons for Independent Coffee Shop Failures

Summarizing the cases of failed independent coffee shops that have been shared, the main reasons are their decoration style, business philosophy, and lack of repeat customers... Therefore, when competing in this market, special attention must be paid to these points.

Creating the Right Atmosphere

A coffee shop should be a place where people can relax. Unlike the standardization of chain coffee shops, small cafes can make full use of their decorations, but they shouldn't make them particularly crowded. The café should be decorated with a certain ambiance, emphasizing overall simple comfort. This is what stimulates consumers to continue spending, as every display in the store should generate value.

Service-First Philosophy

The business philosophy must be service-oriented. Friendly service + standardized service + personalized service = perfect service. Service and products are the most common means to improve customer reputation. Therefore, many baristas in independent coffee shops score full marks in skills. Product quality is the foundation of service and the cornerstone of building relationships with customers. An enthusiastic attitude and quality service always leave consumers with a good impression.

Creating Traffic-Driving Products

Creating traffic-driving products means creating a way to attract customers into the store and introduce foot traffic. Whether it's chain coffee shops or independent ones, "first order free" and "buy one get one free" seem to be the most common methods. However, you can't completely follow trends; you need to develop your own unique characteristics to survive and continue competing.

The Limits of Marketing Gimmicks

Also, be careful! Marketing gimmicks are important and may bring good traffic, but they are definitely not selling points. Without product support, even the most clever marketing gimmicks are just "one-hit wonders" and cannot retain customers' desire to return.

Conclusion: Be Yourself

Today, various specialty coffee shops and independent coffee shops are blooming everywhere, and competition in the coffee track is becoming increasingly fierce. Perhaps the only thing you can compete with is yourself! Being yourself is the hard truth!

Image source: Internet

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