The Swedish coffee-shop chain Wayne’s Coffee has just signed its largest deal ever. A 15-year contract with a new master franchisee in China, Jucheng Ltd Co. And soon, the first coffee shop will open its doors in Shanghai.
Wayne’s Coffee’s expansion to China is part of a long-term strategy for the Southeast Asia region. The coffee shop chain has been expanding outside its home country of Sweden for a number of years.
Apart from establishing itself in Europe and in the Middle East, in June Wayne´s Coffee will also open a coffee-shop in Vietnam. Last year they revealed a long-term plan of establishing a presence in other Southeast Asian countries. And so now the turn has come to China.
The right franchisee – a key to success
Entering China is a big deal for Wayne’s Coffee. It has depended on the ability to find the right franchisee to see the plan come into fruition. In this case the franchisee has a previous connection to Sweden, which is an advantage, along with all the prerequisites required to make Wayne’s Coffee’s concept a reality.
Mats Hörnell, CEO of Wayne’s Coffee, just signed a 15-year contract with a new master franchisee tasked to make this happen. He has the following to say about what is happening:
– The new presence is a big deal for Wayne’s Coffee. Much of it comes down to us being able to find the right master franchisee. Someone able to take on the full responsibility to make sure that the expansion into China becomes the success that we’re hoping for.
The master franchisee is owned by the company Jucheng Ltd Co, which is based in Changchun and Beijing. The company is owned by Mr. Li Qing Jun, who runs a group of businesses specialized in city development. The company group has previously brought in the Swedish lifestyle company Itrim and they are also bringing the Swedish Science Educational Venue Tom Tits to China as a franchise.
Mrs. Shuang Li is CEO for the master franchisee Jucheng Ltd Co. She is brimming in excitement over the future:
– The longevity of this deal means that we have the time needed to fully establish our self on the Chinese market. Even if the starting point for the expansion may be Shanghai, our ambitions doesn’t end here.
We’re counting with a continuing expansion in China, focusing primarily on the bigger cities.
Spreading the Swedish coffee-culture
The new presence in China has a symbolic significance for Wayne’s Coffee. Not the least because of the opportunity to spread the love for Swedish coffee-culture. Mats Hörnell explains:
– Historically, China is mostly associated with tea drinking, but this is rapidly changing. Because at the same time as more Chinese people travel, work and study abroad, the customs are also changing. For example, the market for coffee-shops is increased 37% in 2016.
An extra boost is given to Wayne’s Coffee by the fact that the new master franchisee is so committed to the organic concept. Mr. Li Qing Jun, who is the owner to Jucheng Ltd Co., is running a completely organic farm himself. And some ingredients from this farm may very well be used at the coffee-shops.
This certainly sounds promising. And to CEO Mats Hörnell there is no doubt that Wayne’s Coffee has found the right master franchisee and partner in Jucheng Ltd Co.
– They understand Sweden. The know franchise. They have the financial resources. And they love the concept. I couldn’t wish for more, says Mats Hörnell