Summary of the Key Points
The 9.9 yuan low price in the coffee industry is not a “benefit” but rather a “ticket” designed by brands to enter the market: The main product is priced extremely low to attract customers, and then high profits are made through additional products (such as probiotic straws), extra ingredients, membership programs, and other “accessory-based economies.” At the same time, this price war has a chain reaction—increasing raw material costs lead to a decline in quality, the closure of premium coffee brands, and losses for franchisees. Consumers, caught in an “anchoring effect,” end up spending more money without realizing it.
1. The 9.9 Yuan Coffee: A Bait, Not a Loss-Making Deal
Do you think 9.9 yuan coffee is a subsidy from the brand? In fact, most brands are making money:
- Lucky Coffee: The cost per cup is 5.2 yuan (directly sourced coffee beans from Yunnan + own roastery to reduce costs; 18,000 stores spread out rent and labor costs), selling for 9.9 yuan with a gross profit of 4.7 yuan (47% margin, higher than the average in the food industry).
- Lucky Cafe: Leveraging the shared supply chain of Mixue Ice City, the cost per cup is 3.8 yuan, yet they still make a profit by selling it for 6.6 yuan.
- Kudi: They are actually losing money (costing 7.1 yuan to sell for 9.9 yuan, a loss of 2.2 yuan per cup), relying on financing to survive; they had a net loss of 1.8 billion in the first half of 2026 with a closure rate of 21%.
This price war started with Kudi’s “all items 9.9 yuan” campaign in 2023, followed by Lucky Coffee, and even Starbucks was forced to lower prices. Eventually, consumers have come to regard 9.9 yuan as the “psychological bottom line” for coffee.
2. The Huge Profit from a Single Straw
That 2 yuan probiotic straw costs only 0.8 yuan, with a profit margin of 150%—3.2 times that of coffee (47%)!
- Straws have almost no additional costs (no need to open stores or hire staff); 30% of customers purchase them, adding an average daily income of 200 yuan per store. Lucky Coffee’s 18,000 stores could earn 1.3 billion yuan just from straws alone.
- It’s the same logic as “selling printers cheaply and making big profits on ink cartridges”: The main product is a lure, while accessories are where the real profit lies. Brands don’t mention it directly; they simply ask gently, “Would you like a straw? It only costs 2 yuan.”
3. The Hidden Traps of 9.9 Yuan
The number of people who can actually afford 9.9 yuan coffee is decreasing:
- Channel Markups: Kudi’s 9.9 yuan raw coconut latte on their mini-program costs 11.9 yuan when ordered through delivery platforms, with a price difference of 6 yuan.
- Coupon Restrictions: Lucky Coffee’s 9.9 yuan coupons are limited by area (not available in core business districts) and product type (new products/classic items are mostly excluded); you need to pay an extra 3 yuan for a thick milk latte.
- Clever Marketing: “9.9 yuan for two cups coupon” actually requires buying a membership first for 9.9 yuan, then paying another 9.9 yuan for each cup, totaling 29.7 yuan—more expensive than the regular price!
4. The连锁 Damage of the Price War: Who Pays the Price?
Low prices are not a free lunch; everyone bears the cost:
- Quality Decline: Rising raw material costs (arabica coffee beans at a 47-year high) and manufacturers cutting corners (using blended beans instead of premium ones, or plant-based milk powder instead of fresh milk), leaving only flavoring in the coffee.
- Closure of Premium Brands: Seesaw (valued at 1 billion) went bankrupt, Tims had a net loss of 440 million, and Peiye Coffee closed its doors—these brands had high costs (large stores, premium beans, professional baristas) and couldn’t compete with the low-price fast-service stores.
- Franchisees in Trouble: 80% of Kudi’s stores are franchises; the payback period has increased from 12 months to 4 years, with many losing all their investment.
- Taste Distortion: People accustomed to sweet, cheap coffee find 30 yuan per cup premium coffee too bitter and unaffordable, squeezing the market for higher-quality options.
5. You’re Being “Anchored” by the 9.9 Yuan Price
The most clever strategy brands use is the “anchoring effect":
- The moment you see 9.9 yuan, you assume coffee should always be that cheap; later, when additional costs like straws or milk are added, you compare it to the original price and feel it’s just a little more expensive.
- Brands will never remove the 9.9 yuan option (even if only a few products remain) because it serves as an anchor. Once that anchor is removed, you realize 15 yuan coffee isn’t actually cheap.
- In the end, you might be paying the price of Starbucks (e.g., 18 yuan with extra ingredients), getting lower-quality coffee but still thinking you saved money. You’re not taking advantage; you’re being exploited.
In Conclusion
9.9 yuan is not the end point; it’s just the starting point for brands to make money. When you focus on the low price, you overlook the small additional costs (2 yuan for a straw, 3 yuan for extra ingredients) that are the real sources of profit. The outcome of the price war isn’t about who offers the lowest price but who can make the most money within that illusion of cheapness.
What you’re drinking might not be the cheapest coffee in the world, but it could be the most expensive straw… (End of article.)