BEIJING, China – Cotti Coffee, started by Luckin Coffee founders Charles Lu and Jenny Qian, is the global sponsor for the Argentina National Football Teams. Since the inauguration of its flagship store in October 2022, Cotti Coffee is now present in over 300 cities in 5 countries with more than 5,000 outlets, making it the fifth largest coffee brand worldwide.
In August 2023, the company announced its global expansion strategy, marking its formal entry into the international arena. Concurrently, it launched a global partnership recruitment initiative and has already established multiple outlets in South Korea, Indonesia, Japan, and Canada.
Since its establishment, Cotti Coffee has been driven by its mission of “enabling customers to enjoy a comfortable coffee lifestyle” and its mantra of “Drink Cotti, Feel Younger”. The company is committed to providing customers with high-quality, cost-effective, and convenient coffee products, complemented by Western-style light meals and desserts. With its youthful and chic brand experience, Cotti Coffee has won widespread adoration from its customers.
The brand’s remarkable store performance and validated business model underscore its rapid ascendancy in the industry. Cotti Coffee’s success can be attributed to a combination of strengths, including innovative business strategies, robust supply chain capabilities, an intelligent digital platform, and an unparalleled product and service experience.
Unlike traditional franchising or direct management models, Cotti Coffee has adopted an innovative partnership approach. Initially, the company forgoes any franchise-related fees, opting instead for a profit-sharing arrangement, aiming to share risks with its partners and maximize each party’s strengths. Additionally, Cotti Coffee has instituted a lifetime partnership system, ensuring the longevity of the business locations and sustainability of the business collaboration. If a partner chooses to exit, the company offers a depreciation buy-back option for the equipment, which significantly reduces the barriers for potential partners to enter and sustain their business. This model exemplifies a sustainable, century-long business model that is built to last.
For the international market, Cotti Coffee has introduced both single-store partnerships and regional partnership models, offering more flexible collaboration methods catered to the diverse needs of its partners. Under this arrangement, the company provides support in branding, supply chain, operations, and digital platforms. Partners can select the manner and scale of their collaboration, ensuring both modularity and adaptability. Regional partners benefit further from model store incentives, regional exclusivity, and revenue sharing from both store operations and expansion, thus empowering small enterprises and individual entrepreneurs.
Cotti Coffee boasts an integrated coffee bean roasting facility that combines research, production, and quality control, accompanied by a production facility for related materials. With an annual output of 45,000 tons, it stands as China’s largest individual coffee roasting factory. To further solidify its supply chain, Cotti Coffee is in the preparatory stages of establishing coffee bean and raw material supply chain bases in South America, Ethiopia, Vietnam, and other regions. By amassing global top-tier resources, the company is building a robust foundation of global supply chain infrastructure and capability to support its international expansion.
