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Luckin’s Business Model: A Disruptive Innovation? (part 2)

n China, some market conditions are different. A low number of coffee shops compared to the population, especially in large towns, and the boost in coffee consumption (at two-digits) in particular out of home.

The hot coffee delivery is, therefore, a new opportunity to satisfy the large coffee demand.

At the moment, there is no available data to see if the delivery system will be appreciated by customers, the fact is that the giant coffee chain Starbucks is also moving towards signing a partnership with Alibaba, China’s largest online retailer, to launch delivery services in September. The new deal will see Starbucks integrate a “virtual store” in online shopping and payment apps.
The hot coffee delivery model, launched by the Chinese company Luckin, is fueling the debate among operators: May this new model change coffee habits?

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Luckin and the Hot Coffee Delivery Model (part 1)

As explained by Qian Zhiya, Luckin Coffee founds its business model starting from some weak points of coffee shops in China: high prices and lack of presence. “In western countries, the price of a cup of coffee consists of only 1/1,000 of people’s monthly income. In contrast, it is almost 1/100 for people living in China”. “Also, the number of coffee shops in the mainland is very limited. As opposed to Taiwan, where the population of 23.5 million enjoys over 5,000 CITY CAFE shops (a brand launched by 7-Eleven), there are only 300 Starbucks stores in Beijing, a city populated with 29 million people”. Find out more about Luckin.

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The New Coffee Trends Set to Dominate the Market in 2019

According to the National Coffee Association (NCA), the percentage of Americans drinking coffee every day has risen from 57% to 62% over the past year. Now that is quite an impressive increase! Another factor that has caused this increase was the media attention surrounding a study on coffee consumption published in the journal Annals of Internal Medicine in August 2017. It was the largest ever study based on coffee and mortality which involved more than 520,000 people in 10 European countries. The results were quite dumbfounding, as it concluded that drinking more coffee could significantly improve a person’s life expectancy.
So what has caused this surge to happen?

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Coffee Culture in Arab Countries: From Tradition to Innovation

The Middle East and Gulf region has a market of between 4.5 and 5 million 60-kilogram bags. As the main hub for the region, Dubai has long been the trend setter for the region and at the center of any new development.
The first 3 Arab countries leading the list of coffee consumers (kg per capita) are: Lebanon, Algeria and Qatar, Egypt.

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Coffee Houses in Europe: How Can you Define the Best One?

The history of coffee houses in Europe were developed with the arrival of coffee, a new and delicious drink able to wake up people’s imagination and strength. From wine, the typical drink of pubs, which slows down ideas and conversation, everything changed with the introduction of coffee, a new dynamic and active drink. Europe is covered by different coffee houses, such as the Danish Coffee Collective or Caffè Florian, but where you can drink the best coffee?

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The Secrets of the Coffee Capsules in 10 Steps

The coffee market is now clearly split into portioned coffee and Whole grain / Roast&Ground coffee. In Italy, the market share increased by 20% and ESE by 5%, when the overall market is stable. It means that the commodity, simplicity and quality of these products are satisfying more and more consumers.
Now, as a roaster company or independent Barista, you want to launch your own products, how can you do that and what are the main parameters to control when developing your portioned coffee? [Sign in to continue]

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Some Like It Too Hot? Rethinking Coffee Serving Practices

When questioning professionals or consumers about influences on coffee quality, factors such as type, variety and origin, processing, sorting, gentle roasting, fresh grinding or the type of preparation are usually named. Very rarely, however, is the temperature is brought into play. According to popular opinion, the best way to think with coffee is “the hotter the better”. This belief needs to be tackled in two ways. [Sign in to continue]

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5 Steps to Set Up a Barista Training Program

How to establish a barista training program? Here are 5 steps to do so:
Number 1: Form your C-team
That’s mean you first need a coffee experts team of people – Coffee Team. The team should consist of a group of members who are responsible to coffee quality assurance, coffee education and research & development. These people are the engine of your coffee business. They will be in touch with the latest trend of the coffee world and build up proper trainings for your barista.
Apart from that, the team serves a symbolic meaning to your barista team. They will have a group of people to look up to, which helps to create a better learning environment in the company.
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Blockchain: How Power Relations in the Coffee Chain are Changing

The coffee bean is one of the world’s most valuable agricultural products from the tropics: it’s worth over $100 billion worldwide. The coffee chain is characterised by a huge difference between production and consumption: on one side we have 25 million small farmers producing 80% of the world’s total coffee supply, for less than $2 a day, on the other side we have the “Big Four” coffee roasting companies – Kraft, P&G, Sara Lee and Nestle – buying about 50% of the coffee produced worldwide. This make the relation between buyers and producers in the coffee chain [Sign in to continue]

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