Introduction:When chain brands spark a price war with offerings as low as 9.9 RMB, how can independent coffee shops survive in the cracks? This article delves into the pricing logic behind maintaining quality without fancy interiors through real-life cases and shop owners’ experiences, while also sharing practical cost-reduction tips to help small coffee shop owners find their own viable path.
In recent years, the intense price competition between Luckin and Cotti Coffee has made 9.9 RMB coffee a market focal point, also presenting unprecedented challenges to numerous independently operated small coffee shops. However, one budget-friendly yet quality-conscious coffee shop unexpectedly gained popularity thanks to its affordable prices and solid craftsmanship, sparking renewed public discussion on coffee pricing.
While this price war has successfully attracted many non-coffee drinkers to give it a try, it has also plunged many small coffee shops into operational difficulties. Facing consumers’ sensitivity to price, some shop owners have begun adjusting strategies to strike a balance between cost and quality. Still, some industry players admit that with fixed costs such as rent, utilities, and equipment, achieving a selling price as low as 9.9 RMB per cup is almost an impossible mission.
So, is it really impossible to get a decent cup of coffee for 9.9 RMB? A netizen blogger, during an exploration, unexpectedly discovered a small coffee shop selling coffee at the attractive price of 9.9 RMB. Despite going in with the mindset of possibly being disappointed, the blogger was welcomed by the owner’s warm service and was pleasantly surprised to enjoy a beautifully latte-arted hot latte at such an affordable price.
According to the blogger, the shop’s basic coffee offerings are affordably priced, living up to its name — just 9.9 RMB for a latte of decent quality. Though the owner is somewhat older, they are highly skilled and proficient in extracting espresso, producing fine milk foam, and delivering a well-received overall taste. Compared to other boutique coffee shops that focus on decor, this shop’s clear advantage lies in its price, though it lacks refined interiors and ample seating space.
Online comments are polarized: consumers with overseas living experience argue that this price is closer to international standards, as coffee in Europe and the US typically ranges from 1 to 3 euros (approximately 8 to 23 RMB), making some domestic coffee shop prices relatively high. However, others point out that many small coffee shops offer not just beverages but also unique spatial experiences — intangible costs such as rent, decoration, and utilities must be reflected in the price to sustain basic operations.
Notably, this budget coffee shop operates with an extremely simple model, mainly offering takeout services, thereby reducing investment in seating and decor, which naturally lowers overall operational costs and makes the 9.9 RMB price tag achievable. Netizens resonate with this, commenting things like “no environment sold, just coffee, the price is reasonable” and “small place, no seats, but perfect for keeping the price at 9.9 RMB,” which garnered widespread agreement.
In today’s increasingly competitive industry, if small coffee shops wish to build a stable customer base, besides developing unique personal characteristics that chains cannot replicate, their pricing strategy also needs to align with what customers are willing to pay. By adopting a streamlined business model, optimizing cost structures, and focusing on the intrinsic quality of the coffee itself, even without relying on luxurious decor, they can carve out their own niche in the market.
In summary, facing the impact of the 9.9 RMB price war, small coffee shop owners might consider starting from their actual operational conditions, evaluating their own strengths and resources, and crafting a pricing strategy that both attracts customers and maintains quality. Striking a balance between cost control and preserving coffee flavor is the key to steadily advancing in this market competition and building a loyal, long-term customer base.
The above content is compiled by CoffeeHunters, a coffee news website.