Qian Zhiya, founder of Ruiyu Coffee, said: Ruiyu is more efficient than Starbucks.

May 29 news, at today's Swiss Coffee 2019 Global Partner Conference, and the Global Coffee Industry Development Forum, Ruiyu Coffee founder and CEO Qian Zhiya said: Ruiyu core business model compared with the traditional model, in the cash register and store model and so on there are fundamental differencesStarbucks wastes a lot of labor, store, rent, decoration and so on, compared with the swiss is more efficientQian Zhiya said that by the end of 2021, Ruiyu Coffee to reach the goal of opening 10,000 storesthe following for the full text of the speech:Ruiyu coffee since its inception has been a lot of outside attention, Ruiyu coffee subversive play also attracted a lot of controversy and discussion, some people outside us have doubts, negative, or some did not understand, or even some are more malicious attacks, haveWith a round of financing, including IPOs, this round of negativity has reached a climaxToday I would like to very solemnly thank every partner here, you in all kinds of rumors flying, in all kinds of predictions that The Good Luck will die, has always insisted on being with us, adhere to provide customers with high-quality products and services, once again thank you for your support and trustThank you!I would like to thank you for these negatives todayOn the one hand, these negative news has kept us in the spotlight, so that we have been given free publicity, so that our consumers are familiar with the brand of Ruiyu coffeeOn the other hand, these negatives also make our competitors have some confusion, do not understand us, so that we have the time and space for the development of smouldering sound, a year has changed the status quo of coffee consumption in China, so that we in the coffee industry did not appear like OFO, drip, Uber such a fierce state of competition, so that the rapid development of Ruiyu Coffee in the past year, to today more than 2,000 stores across the country, to the status of the NASDAQ IPOTherefore, these negatives have also contributed to our development over the past yearRuiyu Coffee as a public company, has created enough barriers to competition, so today, with the opportunity of the Global Partner Conference, I also want to tell you clearly and completely to the outside world about our Ryecoffee business logic and business modelthe theme of my speech today is called the business model and development strategy of Ruiyu CoffeeThere's a lot of dry goods in hereRuiyu Coffee is the second largest and fastest growing coffee chain in ChinaThere's a very critical message in that that we actually spent quite a while building information systems for a long time before we opened our first store This information system allows us to quickly support the development behind us By March this year, the number of stores nationwide was 2,370, 100 percent of which were direct The plan for the whole of 2019 is to open more than 2,500 new businesses, and by the end of this year, it will be the largest coffee chain in terms of both the number of stores and the number of cups Why is Ruiyu coffee so fast? What is the core business model like? What is new retail? At the heart of our model is three fundamental differences compared to the traditional one the first fundamental difference between is that there is no cash register and all transactions are done through APPs The first of three benefits is that the customer experience will be better For example, after a customer orders an order, he can see the expected completion time, or he can set his own time to pick up, the customer does not have to queue in the store at all At the same time, customers can also through the APP, very convenient and very quick to find the store Customers can also see the entire coffee-making process through app after ordering All these will be his customer experience to improve the great help, give him a novel consumer feeling the second benefit because there is no on-site counter ordering and no cash register, making store operations very simple and efficient the third benefit, through the APP and customers have produced a strong connection, on the one hand, customers from the beginning to consume the first cup of coffee, from the beginning of the download of APP began to collect data on customer consumption behavior, understand the customer's consumption habits, the future can give him better services and goods In addition, the reverse can be based on these data constantly upgrade my products, iterate my products, while providing customers with better prices, better products this is the first fundamental difference This is just a simple online small program and online order has a very big difference, our core is 100 percent through the APP to trade The second fundamental difference between is the store model There are three kinds of stores, one is premium, one is the quick pick-up shop, the other is a takeaway kitchen shop The strategic focus is in the fast-taking shop, the current proportion is 91.3%, the fast-taking shop mainly concentrated in the office lobby, the enterprise and the traffic of some places with large traffic, the area of 20 flat to 60 flat, smaller no seats or less seats this small shop has three benefits, one advantage is that it is small area, when the shop is easier to find, but also relatively easy to expand, the pace of opening shop is relatively fast, decoration is relatively fast The second benefit is that because it is small, it can be infinitely close to the customer The third benefit, because small, can be relatively simple decoration, rent is also relatively low This is a quick pick shop three benefits premium stores are similar to traditional stores, more are themed stores There are also some takeaway kitchen shops that are complementary to places that are not open to offer delivery services Why focus on the Quick Pick shop? Why is the core offering a fast-picking store service? Everyone look at the middle of this pie chart, this is the proportion of Chinese coffee consumption, we may think that coffee is equal to the coffee shop, but we carefully peelthised this thing, found that 70% of customers are taking away drinking, only 30% of customers are in the shop to drink When I was on the U.S IPO roadshow, U.S investors told me that the proportion of takeaways in this mature consumer market in the U.S would reach 80 to 90 percent, and only 10 percent of customers would enjoy a third space to drink in the store So what we're focusing on right now is getting 70 percent of our takeaway needs, taking this part away to make their experience better, so that's where the focus is So, we're not selling space, we're selling coffee, we're not the "third space", we're talking about "infinite scenarios", and we're going to let our consumers enjoy a good cup of coffee anytime, anywhere This is our core strategic goal here, Starbucks CEO Kevin Johnson said of Rey coffee, saying that Starbucks offers a full range of services, so the customer experience is better than Rye coffee What I'm trying to say is that Starbucks may have a good experience for the 30% in-store portion, but for 70% of takeaway customers, the experience is much better than Starbucks' Later, I will further say that 70% of customers are not spending space, but the high quality of coffee, cost-effective, high convenience the third and traditional model of the core of the difference is technology-driven, data-centric, we have established a close relationship with customers Traditional coffee shop, you bought a cup of coffee away, merchants or brand enterprises actually do not know who this consumer is, what consumer preferences are, completely do not know, even say what consumer evaluation is not necessarily known We use our APP and new retail methods to connect with our customers In addition, in store management also with a new technology-driven approach, with a new way of store intelligent operation to make store operations very simple This is very critical Our store staff do not need to order, do not use cash, store baristas are the key point is to receive orders to keep smiling, and then seriously really put a cup of coffee to do a good job, packaging, waiting for customers to pick it up This is the job of a store clerk For store managers do not have to manage inventory, also do not have to manage scheduling, traditional coffee shops to do things do not have to do, these things by the system to do, the system collects a large number of customer consumption data on sales forecast, very good forecast order should be how to order, scheduling should be how to row, how to meet the supply of resources to meet the demand for sales Therefore, for the store is very simplified, the store manager, the staff's work has become very simple and single At the inventory and supply chain ends, we bring suppliers and customers together and the central warehouse, and the system automatically sends orders to the up-end supplier and central warehouse based on sales forecasts to complete a seamless supply chain the client, store side and supply end of the three, on the one hand can help us improve the efficiency of the entire operation, in the cost of a huge advantage In addition, it is critical that the entire information system, the entire data makes it very effective to control our quality We will control to each order, each customer placed an order, the next will allow customers to do reviews, customer satisfaction will be not satisfied with the evaluation will be associated with the store KPI, while customer service personnel quickly to catch up with the solution of customer problems, and finally reach customer satisfaction Therefore, the quality of service of the entire store, every order is monitored At the same time, we also monitor the production of each cup of coffee, in every coffee machine is equipped with induction device, in each refrigerator is equipped with thermometer, we know that the most important thing is the stability of the coffee machine and the temperature, this is the quality of coffee is the most critical The traditional way may be to rely on the human sense of responsibility to see the time of coffee extraction is not exceeded, the machine is stable and unstable, the temperature has not dropped below five degrees, these rely on the human sense of responsibility and attitude to complete What do we rely on? Relying on every machine equipment plus the Internet of Things technology, all the machine running data are collected in the cloud, through the background system to monitor, once the parameters and indicators of machine operation is biased, our system will automatically issue a work order to the maintenance engineer, send instructions to the store, tell him that the machine to stop, the machine production has been unstable, will affect the taste of customer coffee Through this system on the one hand to improve efficiency, on the other hand to monitor the quality of the entire service and product quality in this place, to answer again just now the host, including The whole mention of the outside world is saying that we are fast, we are fast behind there is no system support, the core is in the information system Traditional coffee chain industry or traditional other restaurant chain industry, are dependent on people, to rely on people's experience, to rely on the decision-making of the store manager, to rely on the store manager's sense of responsibility to manage stores In our sense of responsibility here is also very important, more important is that I am training my system, training my decision-making system, my decision-making system will give the best arrangements and instructions, rather than relying on the experience of the store manager, in addition, all the store quality management is not relying on a few people's sense of responsibility, but rely on a complete data record, through the entire system to break through the chain industry in the past to manage so many direct store bottlenecks and obstacles for the traditional coffee industry, the most valuable talent is actually those restaurant managers, but in Ruiyu, we broke through this restriction, so that we can in the past year in the rapid development, a year opened more than 2,000 stores, and are very good So I think there is a particularly good way to play, you say a hundred fast, not fast for Mercedes-Benz, but for the tractor to drive so fast has been scattered In fact, we have completely changed some of the bottlenecks in the traditional industry in a more advanced way, so that we have been able to develop with such rapid growth in the past year, to achieve today's results the three points mentioned earlier are the differences between the core and the traditional model of Rye coffee, which make up our new retail model and change the cost structure of the entire coffee The first three are the methods, the final this is the core result, this part we have to look closely Two pictures, take lattes as an example, one on the left is the swiss cost structure, and on the right is the cost structure of the traditional coffee brand The red part is the cost of a single cup, with some markings on it Let's take a look at the traditional coffee brands on the right, with a single cup costing 22 to 24 yuan, a Starbucks latte for 32 yuan or 35 bucks Why sell so high, because the cost is already 24 yuan In this cost structure, the bottom is the raw materials, raw materials accounted for a particularly low proportion, the cost of a cup of coffee raw materials plus coffee beans, milk, caramel, cups and so on all counted down 4 yuan to 5 yuan, of which coffee beans a dollar Today there are many partner suppliers here, we all know Where are the more costs to spend? Waste of manpower, stores, rent, decoration, and other operational efficiency Everyone look at the left is Ruiyu coffee, Ruiyu coffee raw material costs and other traditions, we have better optimization space, because we run more efficiently, but this part of our choice is absolutely equivalent to or higher than the same industry standards to choose our raw materials today at the Partner Conference, with further talk of our criteria for partner selection The cost of raw materials is similar, the core difference is rent and decoration, the other is operating costs In the rent and decoration, the traditional company shop, and very good location, basically to the largest flow, the best place, a cup of coffee 10 yuan to 12 yuan store decoration costs For Ruiyu coffee is a dollar to two dollars, why can have such a big difference? One is a small shop quick to take shop area is small, low rent, and do not rely on the good location of the store, the traditional coffee shop or traditional catering industry is the need to rely on the line of diversion, so the store to be very large, location to be very good, but we do not use, we rely on the online APP to drain, so for me, the store location is not necessarily exposed, is not necessarily in the gold corner silver side, is not necessary, so the whole rent will be cheap In addition to the small size, there are units of rent is also cheap Therefore, the cost of this part of the big down, so the cost of rent per cup of coffee can get a great saving second, the efficiency of the entire operation, through technology to make people more efficient, waste less, so that all aspects of the cost of spending less In the first quarter of this year, our single cup cost is 13 yuan, of course, this 13 yuan is not.