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Three Guangdong Coffee Chains Operators Should Know: JPG, Laihui, and Something For

Original publication date
Jul 24, 2022
Archive status
Historical archive
Original source
FoodBud WeChat archive
Original publication source
FoodBud WeChat source
This is an English adaptation of a FoodBud historical article originally published on July 24, 2022.

Guangdong has produced a number of distinctive coffee chains, but South China brands tend to stay relatively quiet. Many have focused on operations rather than large-scale publicity, and some may still be below the store-count threshold that attracts national attention.

This article looks at three Guangdong-origin coffee chains: JPG Coffee, Laihui Coffee, and Something For.

JPG Coffee: Cathay Capital Adds Twice

JPG Coffee was founded in March 2017 in Guangzhou. As of the article date, it had 26 stores, all in Guangdong: 22 in Guangzhou, 3 in Shenzhen, and 1 in Zhuhai.

The brand was once described by people familiar with it as not needing financing. Still, Cathay Capital first invested in December 2021 and increased its stake again in July 2022, bringing its shareholding to 8.3%.

JPG’s first store was a small community shop in Tianhe, built around takeaway and only three coffee products: Americano, latte, and flat white. Its model has since evolved from delivery and takeaway toward “takeaway + social space.” The product logic has also expanded from three classic items to a combination of core drinks and seasonal or special drinks, with fruit-flavored coffee as a frequent focus.

In 2022, JPG was also testing broader product extensions, including burgers.

From an operator perspective, JPG’s chain potential sits in two areas:

  • A product mix that balances repeatable classic drinks with new special drinks that support marketing and freshness.
  • A store portfolio that includes both larger stores for brand visibility and smaller takeaway-oriented formats.

The brand has also invested in simple, recognizable store design, pop-ups, coffee festival participation, takeaway occasions, and social-media-friendly touchpoints. Some stores, such as one in Panyu, could become crowded on weekends.

The article’s view was that JPG had a strong chance to become a high-quality Guangdong coffee chain if it continued expanding steadily, while its ability to scale beyond Guangdong still needed observation.

Laihui Coffee: A Destination Store Model

Laihui Coffee opened its first store in Tianhenan, Guangzhou in 2015. Seven years later, it had 9 coffee stores in Guangzhou, plus a restaurant called Laihui Kitchen. Its factory store, Laihui Kitchen, and another coffee store were located together.

The factory store became a popular check-in destination because of its mountain-facing design. It also included a dedicated coffee roasting area.

Laihui extended from coffee into dining through Laihui Kitchen, a restaurant converted from an old factory building. The environment was distinctive, with fusion-style dishes and a separate wine room. The article noted that the food was not especially remarkable by Guangzhou standards, but the space worked well for group gatherings, despite being somewhat remote.

The article also said Laihui was rumored to be considering other lifestyle-store formats beyond coffee and restaurants.

Operationally, Laihui has clearly put effort into design, coffee machines, and coffee-bean supply chain. But the article also pointed to chain-expansion challenges:

  • The menu included classic drinks such as Americano, pour-over coffee, special drinks, croissants, cakes, and other baked goods.
  • Americano was priced at RMB15 per cup, while milk coffee, pour-over, and special drinks were generally around RMB30 per cup.
  • The pour-over SKU count was relatively high, even though few mainstream consumers fully understand pour-over coffee.
  • Of four special drinks, three contained alcohol and one was non-alcoholic.

The store design used the Chinese characters for “come” and “return” on glass doors: the character for “come” facing outward to welcome guests, and the character for “return” inside to suggest returning home when leaving. However, the in-store music experience was criticized as inconsistent for guests staying one to two hours, an important detail given how much leading coffee chains have historically invested in store music.

Laihui’s controlling shareholder was a company operating gas stations, Xiaoxiang Petroleum of Zhaoqing, which had also invested in hotel-related assets. The article suggested Laihui’s current format might be well suited to developing as a coffee-bean supplier: customers could experience pour-over coffee in-store, then decide whether to buy beans.

Something For: Sequoia-Backed Specialty Coffee

Something For is a Shenzhen specialty coffee brand founded in 2017. Its earlier tagline was “Coffee and Beyond.” After a brand upgrade, it redefined its slogan as “Your Coffee Self.”

Sequoia Capital invested in Something For in mid-2021 and held 16%. The article described it as a very early-stage project, essentially a bet on whether the founder could take the business further.

Founder Li Wenjing previously worked at ZTE, where she and several colleagues were responsible for a mobile-phone coffee shop project. Before returning to China, she had also operated a cafe in Australia.

As of the article date, Something For had 17 stores: 16 in Shenzhen and 1 outside Guangdong, in Hefei, Anhui. The article viewed this expansion path as unusual. A typical route would be to densify one city, then expand within the same province; Something For went to Hefei before building a much larger Shenzhen store base.

The product structure combined Australian-style coffee and special drinks, with baked goods such as croissants. Pricing was around RMB30, placing the brand in a mid-to-high-end range. The brand also encouraged staff, when not busy, to proactively pour water for guests and discuss their coffee feedback.

Operator Takeaway

Guangdong’s coffee chains have generally been low-profile. They have not pursued very large-scale rapid expansion, sky-high valuations, or heavy PR hype. The article’s conclusion was that steady expansion at a comfortable pace can be a healthy path. The coffee market remains large enough for brands with distinctive propositions to find room.

Note: investment stakes, store counts, prices, expansion comments, and forward-looking assessments are historical as of July 24, 2022.