Chongqing - In recent years, coffee has shifted from a luxury indulgence to a daily staple amid intense competition among coffee shops. While it’s typically paired with cakes, desserts, or sandwiches, have you ever tried coffee combined with traditional Chinese medicine and a Chinese burrito?
In Longfor Chongqing Times Paradise Walk, Juan Xin Tang epitomizes the "coffee plus" concept. This innovative coffee shop, which integrates traditional Chinese medicine and Chinese burritos into its menu, has drawn a significant number of customers, setting a new trend in independent coffee shop operations.
The shop entrance is designed with 56 "traditional Chinese medicine drawers." (Photo/Chen Wenhao)
"Differentiation is the way forward for independent coffee shops," said Chen Wenhao, the founder of Juan Xin Tang. In a recent interview with Bridging News, Chen explained that to thrive in the competitive coffee market, new shops must improve product quality, innovate, and build customer loyalty for sustainable growth.
Creating a brand culture with traditional Chinese elements
With 14 years in the coffee industry, Chen combined traditional Chinese medicine with coffee after meticulous observation. Extensive research revealed that Americano is favored not only for its taste but also for its dehumidifying and refreshing properties.
"In fact, traditional Chinese medicine offers similar benefits. So why not combine the two?" Chen remarked. He conducted thorough research and developed a series of mild traditional Chinese medicinal coffees.
For instance, the Hairy Fig Americano blends Hairy Fig, a traditional soup ingredient, with coffee, catering perfectly to the "punk health" trend popular among Chinese youngsters, emphasizing unconventional yet health-conscious lifestyle choices.
A variety of traditional Chinese medicinal coffee beverages. (Photo/Chen Wenhao)
Chen observed that statistics indicate the post-95 generation is notably patriotic and culturally self-assured. Hence, it's no surprise that Juan Xin Tang attracts predominantly young customers, where traditional elements such as Hanfu and cheongsam are now frequently seen on the streets alongside modern attire.
He emphasized the importance of promoting traditional culture and bolstering cultural confidence. The text and logo on Juan Xin Tang's menu, crafted by a calligraphy master, embody this reverence for traditional culture in every detail.
A calligraphy master created the text design on the cup. (Photo/Chen Wenbo)
Innovation over price wars for independent coffee shops
Driven by the rise of large, affordable chain coffee shops such as Luckin Coffee and Cotti Coffee in China, the landscape for independent coffee shops has contracted, leading to heightened competition in the market.
Chen stressed that independent coffee shops should focus on innovation rather than participating in price wars. "High cost-performance is one of our features, but that doesn't mean we should engage in price wars," he added. "Price wars easily lead to vicious cycles."
Juan Xin Tang addresses this challenge by blending affordability with essential offerings, such as its coffee and burrito co, which are tailored for office workers' breakfast needs. Their beverages are priced between 8 and 13 yuan, with the combo ranging from 16 to 23 yuan, a strategy Chen finds appropriate for an independent coffee shop.
Chen's confidence in Juan Xin Tang's cost-effectiveness comes from his extensive experience in coffee trading and training. This allows him to procure raw materials at competitive prices, ensuring the cafe maintains a cost-performance advantage.
"This makes it difficult for other coffee shops to replicate our business model," Chen noted. By emphasizing health and wellness through strong research & development, Juan Xin Tang sets itself apart in a way that other coffee shops cannot easily replicate.
A combo of traditional Chinese medicinal coffee and burrito. (Photo/Chen Wenhao)
Maintaining customer loyalty is a major challenge for independent coffee shops like Juan Xin Tang. Alongside offering cost-effective and high-quality products, they innovate by adapting traditional Chinese medicinal ingredients to seasonal preferences and introducing new coffee blends. With summer approaching, they're preparing to launch a Chinese-style Tong sui coffee to entice customers further.
Since opening two months ago, Juan Xin Tang has dominated Chongqing's coffee scene. Chen announced plans to expand into East China, focusing on cities like Shanghai, Nanjing, and Hangzhou, leveraging the region's strong coffee culture for growth.
Furthermore, Juan Xin Tang has been approached for franchise opportunities in places such as Singapore and Malaysia. Chen aims to showcase Chinese culture by blending coffee with traditional Chinese medicine, thereby enhancing the visibility of Chinese brands in the global market.