Tian Lala to Close Inefficient Stores, Focus on Dine-In and Coffee Expansion
Tian Lala, a beverage chain with over 8,000 stores globally, is planning to close some of its less efficient locations. This strategic move was announced by Xu Zhou, co-founder of Tian Lala, during a seminar on the tea and new tea beverage industry in Anhui on July 22nd. The company aims to improve the operational quality of its dealers and enhance its dine-in customer experience. A key focus will be increasing the average spending per dine-in customer and expanding the variety of coffee-based products offered. Currently, Tian Lala's order split between dine-in and delivery is 65% to 35%. The company intends to adjust this ratio to a target of 70% dine-in and 30% delivery in the future. Furthermore, Tian Lala plans to increase the proportion of coffee products within its overall SKU count to between 20% and 30%. This initiative reflects a broader effort to optimize store performance and diversify its product portfolio.
Tian Lala's strategy to close underperforming stores and pivot towards dine-in and coffee offerings signifies a response to evolving consumer preferences and market dynamics in the highly competitive beverage sector. By optimizing its store footprint and enhancing the dine-in experience, the company seeks to improve profitability and customer engagement. The increased focus on coffee products suggests an attempt to capture a larger share of a growing market segment, potentially leveraging existing store infrastructure. This recalibration of business priorities, including a shift in the dine-in to delivery ratio, indicates a proactive approach to adapting to market trends and strengthening its competitive position for the future.
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