Core Viewpoint - The end of the "9.9 yuan unlimited" promotion by Cotti Coffee marks a significant shift in the Chinese coffee market from aggressive price competition to a focus on refined operations and sustainable profitability [1][9]. Group 1: Price War Dynamics - Cotti Coffee initiated a price war in 2023 with its aggressive "9.9 yuan" strategy, which led to rapid market expansion and increased brand recognition, resulting in over 18,000 stores by December 2025 [2][10]. - The price war attracted competitors like Luckin Coffee and Starbucks, who also adopted similar low-price strategies to maintain market share [2][10]. - The "attack hammer" strategy, while initially successful, has turned into a "bleeding wound" as the cost structure became unsustainable, with Cotti's average cost per cup at 11.1 yuan, leading to a loss of 1.2 yuan per cup sold at the 9.9 yuan price point [3][11]. Group 2: Transition to Sustainable Practices - The coffee industry is transitioning from a phase of "barbaric growth" to one of refined operations, with a focus on quality and product differentiation rather than just low prices [4][12]. - By 2025, the Chinese coffee market is projected to reach 218.1 billion yuan, with a shift in consumer behavior towards coffee as a daily necessity rather than a luxury [4][12]. - Cotti Coffee has reported achieving positive cash flow and profitability since May 2024, indicating a strategic pivot away from unsustainable pricing models [7][14]. Group 3: Consumer Behavior and Market Strategy - Consumer reactions to price changes are varied, with some loyal to the low-price model feeling disappointed by price increases, while others support a return to normal market pricing [4][12]. - The end of the price war is expected to lead to a split in consumer preferences, with some seeking alternatives and others becoming loyal customers of brands that innovate [5][13]. - Brands are now focusing on product innovation and supply chain efficiency as new competitive focal points, moving away from price-based competition [5][13].

Group 1 - The core point of the article is that Kudi Coffee has ended its "unlimited 9.9 yuan" promotion, reflecting a broader industry trend of price adjustments due to rising raw material and operational costs, signaling a shift from low-price competition to value competition in the beverage industry [1][5][6] Group 2 - Kudi Coffee's 9.9 yuan promotion officially ended on January 31, with only 3 to 7 products remaining at that price in various stores, while other products are now priced between 11.9 and 16.9 yuan [3][4] - The company aims to provide high-quality coffee products while participating in various subsidy activities on delivery platforms, indicating a focus on maintaining customer value [4][5] - The aggressive pricing strategy helped Kudi Coffee expand to over 15,000 stores globally within two years, but the current cost pressures from rising coffee bean prices necessitate a reevaluation of this strategy to avoid broader losses [5][6] Group 3 - The price adjustments in Kudi Coffee are part of a larger trend in the restaurant industry, with various brands, including KFC and McDonald's, also raising prices to cope with operational cost increases while keeping dine-in prices stable [7][8] - The reliance on delivery channels has created profit pressures for many brands, as the costs associated with these channels can erode profit margins, making price adjustments necessary [8][9] - Industry experts suggest that while low pricing can attract customers, brands must establish product differentiation and diversify revenue channels to avoid dependency on single pricing strategies and to mitigate the risks of price wars [9]

Core Viewpoint - The coffee industry is transitioning from a "low-price competition" model to a "value competition" model due to rising raw material and operational costs, as well as the unsustainability of aggressive pricing strategies [1][9]. Group 1: Company Actions - Kudi Coffee's "unlimited 9.9 yuan" promotion officially ended on January 31, with a significant reduction in the number of products priced at 9.9 yuan starting February 1 [5][6]. - The new pricing structure includes a "special price zone" with 3 to 7 products remaining at 9.9 yuan, while other products are sold at retail prices ranging from 11.9 to 16.9 yuan [5][8]. - Kudi Coffee's strategy of aggressive pricing helped it expand to over 15,000 stores globally within two years, but the sustainability of this model is now in question due to rising costs [7][8]. Group 2: Industry Trends - The price adjustments at Kudi Coffee reflect a broader trend in the restaurant and beverage industry, where multiple brands are raising prices in response to increased operational costs [9][10]. - Fast food chains like KFC and McDonald's have also adjusted their prices, indicating a collective industry shift towards stabilizing operations amid rising raw material costs [9][10]. - The reliance on delivery channels has intensified profit pressures, as high commission fees and promotional costs associated with these platforms can erode profit margins [10][11].