Tong Zelan rushed to the capital from the Magic City.

She went abroad for almost half a month last month, and Lujiao Coffee is a big project she is working on.

Not counting others, she personally invested about 10 billion in total.

The shareholding ratio is as high as 30%.

She also brought good news this time.

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

The domestic coffee market clearly has huge room for development, and Starbucks alone is not enough to meet the demand.

Twenty billion?

Chen Pingsheng couldn't be too surprised, considering that his total investment in Lujiao Coffee was almost 1.5 billion.

Now we have opened a national franchise market, and half of the entertainment industry’s resources have been invested in it.

Now the market reputation is very good.

In this case, 20 billion is actually not too high.

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

"That's right, 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," said Tong Zelan.

After a while, Chu Qiuyan, Qin Xue and others also arrived.

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

It's quite exciting.

After all, this is a company going to be listed on the US stock market and make money from Americans.

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

Chu Qiuyan also didn't expect that her speech at the university would result in a continuous decline in the share prices of all Tencent Pictures companies.

I still can't see its bottom.

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

"About twenty days."

Tong Zelan thought for a moment and said, "The overseas team will only be here for about a week. After they complete all their investigations, we can officially start the IPO overseas."

"This period is crucial. Not only does their investigation report matter, but we can also make significant efforts ourselves in this area. If we can further increase Lujiao Coffee's valuation, it's very possible that it could reach 30 billion."

Thirty billion is actually about five billion US dollars.

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

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

Compared to this, the valuation of 5 billion US dollars seems not worth mentioning.

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

Celebrity endorsements, internet celebrity photo shoots, trainee competitions, Lujiao Coffee concerts, etc.

All the methods that can quickly increase popularity have been tried.

Chen Pingsheng believes that if we really want to make Lujiao coffee more valuable, we must start from its essence.

That is to improve its earning power.

Improving earning ability mainly depends on two aspects.

One is income and the other is cost.

In terms of revenue, Lujiao Coffee’s new milk coffee is already in short supply.

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

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

Do this in a small and refined way, or in a purely takeaway way.

After thinking for a few minutes, Chen Pingsheng said, "Do you think this approach will work? Lujiao Coffee's earliest stores were mainly opened in the bustling commercial districts of super first-tier cities, on the first floor of the most central locations."

"Although business is good, the investment in a single store is over 2 million yuan, and the payback period is at least three years."

"Later, the cost per store was reduced to 1.5 million, 1.2 million, and now 800,000. The lower the investment cost per store, the faster we can recover our investment and make a profit."

"If we were to open Lujiao Coffee directly inside an office building and focus on takeout or made-to-order, the cost of opening the store would be around 200,000 yuan. Once this is successful, Lujiao Coffee's future profit model will definitely be similar to Bobo Milk Tea, with a quick return on investment."

For traditional stores, it takes more than three years to make a profit.

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

The risks are undoubtedly too high.

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

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

Lujiao Coffee is already famous enough, and there is no need to open a flashy big store just to gain fame.

What is a flashy store? The Lujiao Coffee on Nanjing Street in Shanghai is an example.

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

The same is true for Lujiao Coffee, located in the center of Sanlitun, Beijing, with an annual rent of around five million.

Do you think this kind of store can make money?

It's basically working for the landlord for free.

This is the case with many traditional stores in China.

There is nothing wrong with doing this in the early days to increase visibility.

Now that it is known to everyone in the country, there is no need for it.

What they need to consider now is how to reduce the cost of opening a store, quickly recover the investment and achieve a high-turnover store model.

Lujiao Coffee’s target customers are white-collar workers in office buildings.

Opening a store in an office building is in line with its development positioning.

Tong Zelan thought this was a great 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 the country in less than a year.

Lujiao Coffee is no longer short of money, but it also does not have much money to quickly realize this idea.

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

When I paid the money, I asked the bank to notarize it.

Didn’t Tong Zelan invest in the shared bike-sharing app?

Why did the shared bikes fail so quickly in the market? It’s because they misappropriated customers’ deposits without any scruples.

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

Chen Pingsheng didn't need to touch the franchisees' money at all, he took out another 250 million yuan himself.

Tong Zelan raised another 250 million.

At the same time, they obtained another 500 million yuan in financing for Lujiao Coffee, and then went on a massive search for those super-large office buildings.

By opening Lujiao Coffee in an office building, the savings on storefront transfer fees alone would be sky-high.

In addition, its shop rent is at least half lower than those of the prime shops on the first floor.

If you add the two together, you will find that the cost is greatly reduced.

If there is no popularity in the early stage, it will definitely not work if the business is opened in an office building with no floating population.

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

In order to reduce costs, it became inevitable to drive directly into office buildings.

If this step is successful, Chen Pingsheng feels that there is a great hope of surpassing Starbucks in the domestic market, not to mention the foreign market.

After all, any iced black tea drink at Starbucks costs thirty-five.

A cup of milk coffee at Lujiao Coffee only costs a dozen yuan.

Don’t think that only rich people drink coffee in China. That’s not the case at all.

The largest customer group is the urban white-collar class with a monthly income between 6,000 and 20,000 yuan.

Seventy percent of them are women, and only about 30% of them are men who drink coffee.

At this income level, consumption still requires high cost-effectiveness.

For those who really don't have to consider cost-effectiveness at all, the starting annual salary is five million.

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

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

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

Even Feiyangyang has fallen below its issue price.

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

You can also make a lot of money.

Such an opportunity must be seized.

(End of this chapter)