Can delivery only cafes threaten sit-in cafes?

Luckin Coffee in China is challening Starbucks with its delivery only model.

Luckin Coffee in China is challening Starbucks with its delivery only model.

Bloomberg reports that a two year old Luckin Coffee is threatening Starbucks. It employs 16,500 employees. Its outlets are exclusive for pick-ups and deliveries. Luckin has 2370 outlets. Within a year its revenue has grown by 35 times from INR 14 crores to INR 500 crores approx, with a loss of INR 600 crores approx. Luckin only takes online payment. It has also filed for an IPO to raise INR 3500 crores.

Can it threaten Starbucks?

Starbucks has a lead of 20 years. It has nearly 4000 outlets, and 50,000 employees. Starbucks is present in 150 cities, while Luckin is only present in 28 cities. Most of the Starbucks’ cafes are sit-in. Starbuck’s revenue is 10 times of Luckin, and it is profitable.

How does it matter for Delhi-NCR?

Opening a cafe in Delhi-NCR costs a lot. Brands such as Blue Tokai, CCD, Bizibean and Barista are focussing on sit-in cafes. There is a scope for delivery only coffee brand.