December 4, 2018 |
The convenience of online ordering and cashless payment is revolutionising the F&B industry at an extraordinary pace, and consumers want increasingly efficient service that fits into their busy lifestyles. A new coffee shop chain in China is capitalising on consumers’ desire for hyper-convenient service and is even stepping on the toes of its biggest rival, Starbucks. What is its USP? Paperless service and cheap delivery.
Luckin, which launched in November 2017, has already opened more than 1,400 coffee shops thanks to its supercharged growth plan. The company strategically places its outlets in high footfall locations – where customers want coffee, fast. In fact, half of Luckin’s outlets act solely as delivery hubs, enabling staff to deliver the caffeinated-cargo within the promised 30-minute delivery time.
Luckin is one of the first coffee shop chains to go completely paperless. This means no menus and… no cash. All orders are placed and paid for via the Luckin app. Orders are then delivered to the customers’ requested location or collected in store. The effect on overall business efficiency is profound, and it is also good for the environment. The chain, therefore, has:
The Competition – Starbucks
Starbucks currently has 3,300 outlets in China with plans to open a further 2,700 by 2021, mainly to compete with growing competition from expanding coffee houses and fast-food outlets such as KFC and Pizza Hut. In the past, Starbucks focused on providing a superior offline experience, but has since led the industry with its mobile ordering and rewards app. Over in China, Starbucks also has a large presense on WeChat, and has partnered with Alibaba to create a new retail experience which offers interactive menus powered by augmented reality.
You can watch a video of Starbucks biggest and most interactive location in Shanghai here.
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