Manner Takes a 30% Stake Linked to Coffee-Machine Maker Win-Win: Scaling Pressure Moves Upstream

This is an English adaptation of a FoodBud historical article originally published on October 20, 2021.

For coffee chains built around small stores and semi-automatic espresso, scale is not only a real-estate question. It also depends on barista throughput, training systems, and machine supply.

On October 20, FoodBud reported that Manner Coffee invested in a company founded by Luke Wu, founder of coffee-machine maker Win-Win Coffee Machine, taking a 30% stake.

Win-Win machines were already used by Manner Coffee, alongside La Marzocco. In 2019, when La Marzocco global CEO Guido Bernardinelli visited Shanghai, he also met with Manner Coffee.

Why machines matter to Manner’s model

Manner has generally simplified product pricing, SKU structure, and store footprint. But it has added intensity elsewhere: while a typical cup of coffee on the market uses about 18-20 grams of coffee grounds, Manner raised the dose to 25 grams.

That higher concentration helped shape a stronger consumer perception of milk coffee, making other drinks taste comparatively thin. FoodBud argued this was a clever product move because increasing the coffee dose did not materially increase cost, while it improved perceived flavor.

Manner’s Shanghai stores were typically small street-front units, often opened near Starbucks locations, with store density concentrated in central Shanghai. Whether that street-front model would work outside Shanghai still needed to be tested, and expansion into other cities could require adjustments to the store model.

Supply chain: roasting, training, and machines

Manner had built its own roasting facility and used an internal training academy to produce baristas at scale, addressing talent-pipeline needs. Through deeper cooperation with coffee farms, the company controlled planting, processing, and transportation more tightly. Its roasting plant in Tongzhou, Jiangsu, covered more than 4,000 square meters and supplied national stores and e-commerce channels.

But another bottleneck remained: coffee machines. As China’s coffee market expanded, machine capacity was struggling to keep up.

Unlike Starbucks and Luckin, which used fully automatic coffee machines, most specialty-coffee operators used semi-automatic machines. Manner was no exception: its stores used La Marzocco semi-automatic espresso machines as well as Win-Win machines.

Industry sources cited by FoodBud said semi-automatic machines and fully automatic machines produce materially different results. Semi-automatic production requires close coordination between operator and machine, while fully automatic machines primarily solve output consistency by allowing parameters to be preset and replicated quickly nationwide.

For a chain to use semi-automatic machines at scale, it must invest heavily in baristas and back-end training.

Manner used barista control to preserve product differentiation and create a brand barrier. According to estimates cited in the article, labor accounted for around 15% of single-store cost, nearly level with rent at 12%-15%.

Why Win-Win was strategically relevant

According to related media reports cited by FoodBud, Manner used Win-Win’s high-end two-group machines, described as its most stable configuration. Each unit cost about RMB 73,000, roughly RMB 3,000 cheaper than a Linea PB. Compared with La Marzocco, Win-Win used a prepaid payment structure: 50% paid upfront and the remaining 50% before shipment. For after-sales service, Win-Win could assign dedicated personnel at RMB 2,000-3,000 per unit.

In a media interview, Luke Wu described the machine’s advantage this way: it had only one switch and relied on a touchscreen, like a mobile phone. Once the desired data were entered on the screen, coffee beans and grounds could be measured directly by gram weight. He also argued that brands wanting to scale in China needed to reduce human variability.

FoodBud’s view was that Manner’s need for scaled expansion was the core reason behind the investment in Win-Win.

Capital, IPO speculation, and expansion targets

At the time, Manner was expected to expand to 400-500 stores by the end of the year, which meant solving both barista supply and coffee-machine supply.

Around the same period, while Manner was promoting its sixth-anniversary celebration on WeChat Moments, media reports emerged that Manner was seeking a Hong Kong listing. Sources said Manner Coffee was considering an IPO in Hong Kong to raise at least USD 300 million.

Manner’s founder later told media that there was no listing plan for the time being, but the report still triggered speculation.

FoodBud summarized Manner’s financing history as follows:

• 2018: RMB 80 million first financing round from Capital Today.
• 2020: investment from Coatue and H Capital, valuing the company at USD 1 billion.
• February 2021: investment from Temasek, valuing the company at USD 1.3 billion.
• May 2021: support from Meituan Longzhu.
• June 2021: Series B investment from ByteDance, valuing the company at about USD 2.3 billion.

FoodBud’s conclusion was that Manner still had ample capital. In front of capital, the costs of baristas and coffee machines were relatively small issues; scale was the bigger question. If the talent pipeline could keep up and machine supply could be solved, the next task would be validating the store model in other cities and expanding at scale.

Note: Store targets, IPO discussion, financing amounts, and valuations are historical figures from the 2021 source article.