Overview
Cotti Coffee is a Chinese coffee chain founded in 2022, offering espresso-based drinks, flavoured coffees and other beverages at prices intended to attract frequent, everyday purchases. Although it sits within the coffee and bakery category, its central proposition is beverages rather than a bakery-led café experience. Menus and food availability differ between markets.
The business combines centralised brand development, procurement and digital systems with a substantial network of partner-operated outlets. Compact stores, takeaway service and mobile ordering are important elements of its format. For prospective franchisees, Cotti is best understood as a high-volume, value-focused coffee operation rather than a traditional coffee house built around lengthy customer visits.
History and growth
Cotti was established by a team that included Luckin Coffee co-founders Charles Lu, also known as Lu Zhengyao, and Jenny Qian, also known as Qian Zhiya. Its first store opened in Fuzhou, China, in October 2022. The founders’ experience in digitally enabled coffee retail helped shape the new chain’s emphasis on convenient ordering, standardised preparation and rapid expansion.
The company grew unusually quickly through partnerships with local operators. It entered overseas markets in 2023 and announced its 10,000th store in October 2024, approximately two years after launch. That milestone illustrates the speed of development, but store openings alone do not establish outlet profitability, franchisee returns or the durability of customer demand.
Global footprint
Cotti reported a network of around 10,000 stores worldwide as of October 2024, with China accounting for the overwhelming majority. Its international expansion included markets such as South Korea, Indonesia, Japan and Canada. The footprint should be treated as a dated company-reported milestone rather than a current live count.
The overseas business is less mature than the Chinese network, and its presence varies considerably by country. A market launch does not necessarily mean broad national coverage or that franchise territories remain available. Local menu choices, delivery arrangements and store formats may also differ. Applicants should establish which entity controls development rights in their intended territory and whether it is recruiting single-store operators or larger development partners.
How the franchise model works
Cotti has described its approach as a partnership model, often referred to as joint operation. Under the model publicised in China, partners provide capital and undertake store-level operations, while Cotti supplies the brand, operating systems, product development and supply-chain support. The company has promoted a service-fee structure linked to store gross profit rather than relying on a conventional fixed franchise royalty.
Those descriptions should not be treated as universal contractual terms. Overseas agreements, market-specific charges and responsibilities can differ. The practical relationship remains one in which an independent operator depends heavily on central purchasing, technology and promotional decisions. Before proceeding, applicants need the actual agreement explaining fee calculations, required sourcing, operating standards and the division of responsibilities between the brand and the store partner.
Investment and requirements
A single, globally applicable Cotti franchise fee or total investment range is not publicly disclosed. Figures associated with a particular Chinese recruitment campaign should not be transferred to an overseas store without verification. Prospective franchisees should request the relevant franchise disclosure documents, where available or required, together with the current market-specific agreement and a complete schedule of charges.
The investment assessment needs to cover premises, fit-out, coffee equipment, deposits, opening stock, staff recruitment and working capital. Rent, labour costs and import requirements can make the same store concept materially more expensive in one market than another. Applicants should also establish any experience requirements, training obligations, minimum staffing levels and expectations for the owner’s direct involvement. Published promotional material is not a substitute for documented local requirements.
What franchisees should consider
The central operating question is whether transaction volumes can support a low-priced offer after ingredients, labour, occupancy costs and platform charges. Discount campaigns may attract trial purchases, but their value depends on repeat demand and the allocation of promotional costs. Applicants should ask who funds discounts, how support payments work and whether advertised support is time-limited or conditional.
Rapid network growth also makes site selection and territory arrangements important. Nearby openings can affect an existing outlet even when overall brand recognition improves. Other points for scrutiny include supplier reliability, equipment servicing, access to trading data and procedures for closing or transferring a store. Evidence from comparable, established outlets is more informative than headline network growth or sales achieved during an opening promotion.
Competitive landscape
Luckin Coffee is Cotti’s closest strategic comparator in China: both emphasise digital ordering, accessible prices and a large network of conveniently located stores. Starbucks competes for some of the same coffee occasions, although its positioning and café experience differ. Costa Coffee and Tim Hortons are additional branded competitors, with their relevance depending on the country and local trading area.
Cotti also faces independent cafés, convenience-store coffee and other low-priced beverage chains. In South Korea, for example, established value operators such as Mega MGC Coffee provide a useful competitive reference. Franchisees therefore need to assess the immediate catchment rather than rely on global brand comparisons. Convenience, speed, delivered price and product consistency can matter as much as the name above the door.
Outlook
Cotti’s longer-term prospects depend on converting rapid expansion into a stable, economically sustainable network. Its value positioning addresses a broad customer need, while centrally developed products and digital systems can help standardise execution. However, those features are not unique, and sustained discounting places pressure on both the brand and its operating partners.
International development adds another test: a model shaped by China’s dense cities and highly developed delivery ecosystem may require adjustment elsewhere. Labour costs, customer habits and supply-chain economics vary substantially. For potential franchisees, the decisive evidence will be mature-store performance, clear contractual terms and dependable local support. The scale reached by October 2024 establishes Cotti as a significant entrant, not a guarantee of success for an individual outlet.
Cotti Coffee franchise: frequently asked questions
How much does a Cotti Coffee franchise cost?
A single worldwide franchise fee or investment range is not publicly disclosed. Costs depend on the market, premises, format, equipment and local operating requirements. Prospective franchisees should request the relevant franchise disclosure documents and a complete local cost schedule, including service charges, deposits, working capital and any mandatory purchasing commitments.
How many Cotti Coffee locations are there?
Cotti reported around 10,000 stores worldwide as of October 2024, approximately two years after its first opening. Most were in China, although the company had also expanded internationally. This is a dated company-reported milestone, not a live store count; applicants should request current information for their intended market.
Who founded Cotti Coffee?
Cotti Coffee was founded in 2022 by a team that included Luckin Coffee co-founders Charles Lu, also known as Lu Zhengyao, and Jenny Qian, also known as Qian Zhiya. Its first store opened in Fuzhou in October 2022. Cotti is a separate business from Luckin, despite the founders’ shared background.
Does Cotti Coffee offer franchises outside China?
Cotti has expanded internationally using local business partnerships, but franchise availability and contractual arrangements vary by country. An existing store does not establish that applications or territories are available. Interested operators should confirm the authorised local contracting entity, the type of partnership offered and whether recruitment covers individual outlets or broader development rights.
How does Cotti Coffee’s partnership model work?
Under the model publicised in China, partners invest in and operate stores while Cotti provides branding, products, procurement support and digital systems. The company has described service fees linked to store gross profit. Overseas terms may differ, so applicants should verify the precise fee formula, promotional obligations and operating responsibilities in their local agreement.
Latest Cotti Coffee news
Our news engine monitors Cotti Coffee announcements. New reports will appear here as they are published.
Figures are approximate and based on publicly reported information as of October 2024. Franchise costs and terms change; prospective franchisees should obtain the brand’s current disclosure documents and take independent legal and financial advice. Profile updated October 2026.