Chapter 248 New Model

Tong Zelan rushed to Beijing from Shanghai.

She went abroad for almost half a month last month. Lujiao Coffee is her big project.

Not counting other investments, she invested about 1 billion yuan in total.

The shareholding ratio is as high as 30%.

She also brought good news this time.

"Old Chen, Lujiao Coffee's IPO valuation can reach at least 20 billion yuan."

The domestic coffee market obviously still has huge room for development. Starbucks alone is not enough to meet the demand.

20 billion?

Chen Pingsheng was not too surprised. You know, his total investment in Lujiao Coffee is about 1.5 billion yuan.

Now the national franchise market has been opened, and half of the entertainment industry resources have been invested in it.

The market reputation is very good now.

In this case, 20 billion is not too high.

"According to the overseas listing survey, this month is quite critical."

"Yes, but I still believe that with the reputation and prestige that Lujiao Coffee has accumulated over the past year, there will definitely be no problem." Tong Zelan said.

After a while, Chu Qiuyan and Qin Xue also came.

The news that Lujiao Coffee has applied for listing on NASDAQ has spread throughout the company.

It is very exciting.

After all, this is to go public on the US stock market and make money from the Americans.

The technology companies there are worth hundreds of billions of US dollars, which is not comparable to those real estate companies in China.

Chu Qiuyan did not expect that her speech at the university would cause the stock price of Tencent Pictures to fall continuously.

It is still unclear what the bottom is.

Chen Pingsheng asked Tong Zelan, "How long do you expect it will take to officially start the IPO of Lujiao Coffee?"

"About 20 days."

Tong Zelan thought for a while and said, "It will only be about a week before the foreign team comes. After they complete all the investigations, we can officially start the IPO abroad."

"This period of time is still very critical. Not only their investigation report, but also we can make great efforts in this regard. If we can further raise the valuation of Lujiao Coffee, it is very likely to reach 30 billion."

30 billion, in fact, is about 5 billion US dollars.

You say it is high, the domestic beverage industry is indeed unique.

If you say it is not high, Starbucks has a market value of 100 billion US dollars.

In comparison, the valuation of 5 billion US dollars seems not worth mentioning.

If you want to raise the valuation of Lujiao Coffee during this period, you must let the investigation team see the greater development space of Lujiao Coffee.

Celebrity endorsements, Internet celebrity shooting, trainee competitions, Lujiao Coffee concerts, etc.

All methods that can quickly increase popularity have been done.

Chen Pingsheng believes that if you really want to make Lujiao Coffee more valuable, you still have to start from the essence.

That is to improve its ability to make money.

The improvement of the ability to make money mainly depends on two aspects.

One is income, and the other is cost.

In terms of income, Lujiao Coffee's new milk coffee is already in a state of being hard to find.

In terms of cost, the current investment in a single store of Lujiao Coffee has dropped to about 800,000.

If you want to further reduce the cost of opening a store, you must accurately target your store at the target customers.

Do this in a small and fine way, or in a pure takeaway way.

After thinking for a few minutes, Chen Pingsheng said: "Do you think this will work? The earliest Lujiao Coffee stores were mainly opened in the prosperous commercial areas of super first-tier cities, or in the most central first-floor storefronts."

"Although the business is good, the investment in a single store is as high as more than 2 million, and the payback period is at least three years."

"Later, the cost of a single store was reduced to 1.5 million, 1.2 million, and now 800,000. The lower the investment cost of a single store, the faster it can pay back and make a profit."

"If we open Lujiao Coffee directly in an office building and focus on takeaway or order production, the cost of opening a store is estimated to be around 200,000. Once this step is taken, Lujiao Coffee's future profit model will definitely be like Bobo Milk Tea, and move towards a business path of rapid payback."

Traditional stores will take more than three years to pay back.

Then this business, let alone a valuation of 20 billion, even whether it can be listed is a big question mark.

The risk is undoubtedly too high.

Once the investment cost of a single Lujiao coffee store can be reduced to 200,000, if the business is still good.

It is definitely not a problem to make back the cost in one year.

Lujiao coffee is already famous enough, and there is no need to open a flashy big store just because of its reputation.

What is a flashy store? Lujiao coffee on Nanjing Street in Shanghai is one of them.

The annual rent is as high as 9 million, and the area is only more than 200 square meters.

Lujiao coffee in the center of Sanlitun in Beijing is also the same, with an annual rent of about 5 million.

Do you think such a store can make money?

It is completely working for the landlord for free.

Many traditional stores in China are like this.

In the early days, it was understandable to do so in order to increase popularity.

Now that it is well known in China, it is completely unnecessary.

How to reduce the cost of opening a store, quickly recover the cost and realize a high turnover store opening model, that is what they have to consider now.

Lujiao coffee's own customers are white-collar workers in office buildings.

Opening a store in an office building just fits its positioning and development.

Tong Zelan thought this was a good suggestion.

Once the cost of opening a store can be reduced to less than 200,000, Lujiao Coffee will be able to open another 5,000 stores in China in less than a year.

Lujiao Coffee is no longer short of money, but it doesn't have much money to quickly realize this idea.

Although the franchisee's deposit is 300 million, this money must not be touched.

When paying the money, the bank was notarized.

Didn't Tong Zelan invest in the small yellow car?

Why did the small yellow car fail so quickly in the market? It was because it misappropriated the customer's deposit without any bottom line.

Which investor would dare to give money to such a company?

Chen Pingsheng didn't need to touch the franchisee's money at all. He took out 250 million again.

Tong Zelan raised another 250 million.

Together, they got another 500 million in financing for Lujiao Coffee, and then went all out to find those super-large office buildings.

Opening Lujiao Coffee in an office building, just saving a storefront transfer fee is a sky-high price.

In addition, its store rent is at least half lower than those first-floor prime shops.

Add the two together and you will find that the cost is greatly reduced.

If there is no reputation in the early stage, it will definitely not work to open in an office building without floating population.

Now that it is so famous, there is no need to worry about no one buying it.

Reducing costs and opening directly in office buildings has become inevitable.

If this step is successful, Chen Pingsheng thinks that there is definitely a great hope to surpass Starbucks in the domestic market, not to mention the foreign market.

After all, any cup of black tea iced drink at Starbucks costs 35 yuan.

And a cup of milk coffee at Lujiao Coffee is only a dozen yuan.

Don't think that all coffee drinkers in China are rich people, it's not at all.

It's the urban white-collar class, with a monthly income of 6,000 to 20,000 yuan.

Among them, 70% are women, and only about 30% are men who drink coffee.

At this income level, consumption still pays attention to cost-effectiveness.

Those who really don't need to consider cost-effectiveness at all start with an annual salary of 5 million.

The reason why Chen Pingsheng is in a hurry to complete the IPO of Lujiao Coffee.

The main reason is that he wants to get several billion and buy back all his own stocks.

If it continues to fall like this for another month, it will fall to the initial issue price.

Even Feiyangyang has already fallen below the issue price.

If he takes the opportunity to buy back, it will not only boost market confidence.

He can also make a lot of money.

Such an opportunity must be seized.