Luckin Coffee's Competitor (No, Not Starbucks) Cotti Coffee Plans To Open Coffee-Centric Convenience Stores – CoffeeTalk

China’s Cotti Coffee, a budget coffee chain founded by Luckin Coffee co-founder Lu Zhengyao, plans to open convenience stores as part of its expansion strategy amid intensifying competition. The new Cotti convenience stores will maintain a coffee-centric theme while offering typical convenience store products, including ice cream, instant noodles, bottled drinks, warm snacks, and boxed meals. Established in October 2022, Cotti Coffee follows a similar strategy to its main competitor Luckin Coffee, selling coffee at low margins to gain market share. The introduction of the convenience store model is designed to maximize operational efficiency, boost store revenue, and help Beijing-based Cotti reach its target of 50,000 stores by year-end. As of last October, Cotti operated over 10,000 coffee shops, less than half the number of Luckin Coffee’s locations. Cotti has been expanding its retail strategy, forming partnerships with companies like Suning, Meiyijia, and Wallace Food. Meanwhile, Luckin Coffee continues its rapid expansion, operating over 21,340 stores as of Sept. 30, 2024, representing a 7% increase from the previous quarter.

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