Cotti Coffee

Cotti Coffee is a Chinese coffeehouse and convenience-store brand founded in 2022 by Lu Zhengyao and Qian Zhiya, two former senior figures associated with Luckin Coffee. Headquartered in Beijing, the company entered the market with a deliberately asset-light and highly expansionary model. Rather than relying primarily on company-operated outlets, Cotti promoted a fully franchise-based approach and sought to build a large store network quickly through relatively accessible investment and standardized operations. The brand's emergence followed the corporate crisis at Luckin Coffee. In 2020, Luckin acknowledged that fraudulent transactions had taken place during 2019, and Qian Zhiya and other executives left their positions. Cotti was established later by Lu and Qian, but it is a separate brand and company from Luckin Coffee. Its founders' prior experience influenced Cotti's emphasis on standardized beverages, digital ordering, high store density, and aggressive customer acquisition. Cotti opened its first store in Fuzhou, Fujian, on 22 October 2022. From the beginning, it positioned itself as a mass-market coffee chain rather than a premium café operator. Its commercial formula combines frequent low-price promotions, including coffee offers around 9.9 yuan in China, with a broader menu priced at regular levels. The brand targets consumers seeking convenient, affordable coffee and competes most directly with Luckin Coffee and other rapidly expanding domestic chains. Its menu includes milk-based coffee, tea-coffee combinations, rice-milk coffee, and non-coffee drinks. Depending on the market and store format, outlets may also sell light meals, instant coffee, packaged products, and branded merchandise. Cotti has experimented with traditional standalone stores as well as store-in-store and convenience-store formats, enabling it to enter high-traffic retail, food-and-beverage, and transport-oriented locations with comparatively limited space requirements. International growth has been central to the brand's identity. Cotti has opened stores in parts of Asia and Europe, including South Korea, Indonesia, Japan, Hong Kong, Thailand, Malaysia, the Philippines, Singapore, France, Germany, Spain, England, Belgium, and the Netherlands. Reference material reports more than 18,000 stores in 28 countries and over 300 cities by April 2026, although the company’s exact store count and geographic footprint may change rapidly because of its franchise-led expansion. Cotti has also used sports sponsorships and licensed collaborations to increase recognition beyond China. Its reported activities include sponsorship of the Argentina national football team and collaborations involving Garfield, Honor of Kings, SpongeBob SquarePants, and Spy × Family. These partnerships support a broad, youth-oriented consumer image and help the brand compete for attention in a crowded beverage market. The company's main strategic tension is the balance between rapid network growth, low consumer prices, franchisee economics, and consistent customer experience. Cotti announced a target of 50,000 stores by the end of 2025 and later indicated that it would suspend new franchise applications in major Chinese cities from 1 March 2026 while developing more flagship stores. This suggests an effort to shift some attention from pure outlet growth toward network quality, brand presentation, and customer experience. Cotti remains an active, privately held international coffee chain, but detailed ownership, financial, and executive information is not broadly disclosed in the supplied source material.

Cotti Coffee was founded in 2022 by Lu Zhengyao and Qian Zhiya, who had previously been associated with Luckin Coffee. Its origins are connected to the leadership crisis that affected Luckin after the company disclosed fraudulent transactions covering the second through fourth quarters of 2019. In April 2020, Luckin acknowledged transactions reported to total approximately 2.2 billion yuan. A filing with the United States Securities and Exchange Commission stated that Qian Zhiya and Liu Jian were removed from their positions as chief executive officer and chief operating officer, respectively, while Lu Zhengyao stepped down from a board committee leadership role. Cotti was subsequently created as a separate coffee brand by Lu and Qian. The first Cotti store opened in Fuzhou, Fujian, on 22 October 2022. The company entered a Chinese coffee market that was expanding rapidly but remained highly competitive. Its initial proposition combined low headline prices, standardized drinks, digital and delivery-oriented operations, and accelerated store rollout. A fully franchise-based model allowed Cotti to seek rapid geographic coverage without depending exclusively on company-funded stores. Instead of traditional fixed franchise charges as its central mechanism, the company described a service-fee structure linked to store gross profits. Cotti's expansion strategy placed it in direct competition with Luckin Coffee. The two brands target overlapping mass-market consumers, operate in many of the same commercial areas, and use promotions to stimulate frequency and trial. Their competition has involved store openings, pricing, beverage innovation, delivery partnerships, and the use of standardized operating systems. Cotti has promoted offers such as 9.9-yuan coffee in China, using discounted products to attract customers while retaining a wider menu at regular prices. The brand's retail formats have extended beyond conventional cafés. Cotti has experimented with outlets embedded in convenience stores, food-and-beverage businesses, and other high-traffic locations. Store-in-store formats can reduce the space and capital required for expansion, although they also create operational and brand-control challenges. The company has complemented beverages with light food, instant coffee, merchandise, and regionally adapted menu items. Internationalization became a prominent element of Cotti's development. The chain expanded from China into a range of Asian markets, including South Korea, Indonesia, Japan, Hong Kong, Thailand, Malaysia, the Philippines, and Singapore. It also entered European markets such as France, Germany, Spain, England, Belgium, and the Netherlands, with expansion plans reported for Italy and Portugal. By April 2026, reference material described a network exceeding 18,000 stores in 28 countries and more than 300 cities. Because the business is franchise-led and continues to change quickly, store-count figures should be treated as time-specific rather than permanent corporate statistics. Cotti has pursued consumer awareness through entertainment, gaming, character, and sports partnerships. Reported collaborations include Garfield, Honor of Kings, SpongeBob SquarePants, and Spy × Family. Its sponsorship of the Argentina national football team was intended to support international brand-building. These activities place Cotti closer to a high-frequency, lifestyle-oriented beverage brand than to a narrowly coffee-specialist chain. The company announced an ambition to reach 50,000 stores by the end of 2025. Later plans to suspend franchise applications in major Chinese cities from 1 March 2026, while establishing flagship stores, indicated a possible shift toward improving store quality and customer experience after a period of exceptional network growth. Cotti remains active and internationally expanding. Public information supplied for this dossier does not establish a definitive parent company, owner, listed entity, current chief executive, or audited financial profile.

1. 2026Reported network exceeds 18,000 stores

   Reference material reported more than 18,000 stores across 28 countries and over 300 cities by April 2026.

   Source
2. 2026Planned pause in major-city franchise applications

   The company planned to suspend franchise applications in major Chinese cities from 1 March 2026 and develop flagship stores.

   Source
3. 202550,000-store target

   Cotti announced a target of reaching 50,000 stores by the end of 2025.

   Source
4. 2022Cotti Coffee is founded

   Lu Zhengyao and Qian Zhiya founded Cotti Coffee as a new Chinese coffee chain after their earlier association with Luckin Coffee.

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5. 2022First store opens in Fuzhou

   The first Cotti Coffee store opened in Fuzhou, Fujian, on 22 October 2022.

   Source

An affordable, mass-market coffee chain emphasizing promotional pricing, standardized beverages, franchising, high store density, and rapid international expansion.

• Milk coffeeCoffee

  Milk-based coffee is a core part of Cotti's mass-market menu. These drinks are designed for standardized preparation across a large franchise network and are commonly supported by promotional pricing. Variants may differ by country and season.

• Tea-coffee beveragesCoffee and tea

  Tea-coffee combinations broaden the menu beyond conventional espresso and milk drinks. They reflect Cotti's effort to adapt coffee products to local taste preferences and to appeal to consumers who also purchase tea-based beverages.

• Rice-milk coffeeCoffee

  Rice-milk coffee is one of the beverage categories associated with Cotti's menu. It provides a non-dairy-style flavor profile within the coffee range and illustrates the chain's use of localized or alternative milk concepts.

• Non-coffee beveragesBeverages

  Cotti stores also sell non-coffee drinks, enabling the chain to serve customers who do not drink coffee and to increase purchase occasions throughout the day. The exact assortment varies by geography and store format.

• Light meals and merchandiseFood and retail products

  Selected outlets offer light meals, instant coffee, and branded merchandise in addition to prepared beverages. These products support the company's convenience-oriented positioning and may be particularly relevant in store-in-store and high-traffic locations.

• Argentina national football team sponsorship

  International

  Cotti Coffee became a sponsor of the Argentina national football team as part of an effort to build recognition outside China and associate the brand with a globally visible sporting property.

  Outcome. Supported international brand visibility; a measurable commercial outcome is not established in the supplied material.

  Source
• Character and entertainment collaborations

  China · International

  The brand partnered with properties including Garfield, Honor of Kings, SpongeBob SquarePants, and Spy × Family. These collaborations connected beverage promotions and retail branding with entertainment, gaming, and character fandoms.

  Outcome. Expanded promotional and lifestyle-oriented brand communication; specific campaign results are not provided.

  Source

• 2026Pause franchise applications in major Chinese citiesStrategy

  After a period of rapid outlet growth, Cotti sought to improve customer experience and strengthen selected locations.

  What changed. From 1 March 2026, the company planned to suspend franchise applications in major cities, including municipalities and provincial capitals, while establishing flagship stores.

  Aftermath. The plan indicated a possible shift from unrestricted network expansion toward flagship locations and greater attention to store quality.

  Source
• 2025Target 50,000 storesStrategy

  Cotti's franchise-led model was designed to accelerate geographic coverage and increase brand visibility.

  What changed. The company announced an ambition to reach 50,000 stores by the end of 2025.

  Aftermath. The target underscored the company's emphasis on scale, although the supplied material does not independently verify whether the target was achieved.

  Source
• 2022Adopt a fully franchise-based expansion modelStrategy

  Cotti entered a competitive Chinese coffee market and sought to build a large store network rapidly while limiting reliance on company-operated outlets.

  What changed. The company promoted a fully franchise-based model and described collecting service fees linked to store gross profits rather than relying primarily on conventional franchise fees.

  Aftermath. The model supported rapid store growth in China and internationally, while making franchisee economics, standardization, and customer-experience control central operating issues.

  Source
• Use promotional coffee pricingPrice change

  Cotti competed for mass-market customers in a price-sensitive Chinese coffee market.

  What changed. The brand introduced low-price promotions, including coffee offers around 9.9 yuan, while retaining regular-priced items elsewhere in the menu.

  Aftermath. The approach strengthened Cotti's value-oriented positioning and intensified price competition with Luckin Coffee and other domestic chains.

  • Luckin Coffee — Luckin Coffee competed in the same mass-market segment through overlapping promotional pricing, store expansion, and standardized beverage offerings.
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• 2026Cotti Coffee reports large international store network

  Reference material reports that Cotti had more than 18,000 stores across 28 countries and over 300 cities by April 2026.

  Other
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• 2026Cotti Coffee plans to pause franchise applications in major Chinese cities

  From 1 March 2026, the company planned to suspend franchise applications in major cities, including municipalities and provincial capitals, while developing flagship stores.

  Other
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• 2025Cotti Coffee pursues a 50,000-store expansion target

  The brand set a target of reaching 50,000 stores by the end of 2025 as part of its rapid franchise-led expansion strategy.

  Other
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• 2022Cotti Coffee opens its first store in Fuzhou

  Cotti Coffee began operations with the opening of its first store in Fuzhou, Fujian, on 22 October 2022.

  Other
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• Cotti Coffee sponsors the Argentina national football team

  The brand used a sponsorship of the Argentina national football team to support international visibility and brand recognition.

  Campaign
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1. Cotti Coffee