TOP value tea beverage expert holiday summary

**I. National Day and Quarterly Performance: MIXUE GROUP Shows Significant Growth Momentum**

**National Day Holiday Performance Surge**: This year's National Day holiday (daily average for days 1-8) compared to last year (daily average for days 1-7) showed a year-over-year growth of 20%-30%. Tourist hotspot cities like Xi'an and Chengdu performed excellently, with flagship stores in Chongqing and other locations showing outstanding results. Some stores achieved daily revenues of 200,000-300,000 yuan, with overall National Day incremental growth of 25-30% compared to last year.

**Varying Growth Across Quarters**: In Q1, same-store daily average actual revenue increased 5-6 percentage points year-over-year, driven by higher average transaction values. Q2 saw store average actual revenue grow 12%-15% year-over-year. Q3 showed significant store average growth, with July increasing over 17%, and August-September showing 10% year-over-year growth in cash receipts. The main driver for Q2 and Q3 growth was increased transaction volume.

Q3 actual revenue year-over-year growth was similar to Q2, with Q2 showing slightly higher but not significantly different growth. During National Day, GMV grew year-over-year and actual receipt rates improved month-over-month, possibly influenced by holiday duration and tourism factors.

**September Performance Decline**: September store revenue declined month-over-month, affected by seasonal factors and reduced delivery subsidies. Average daily orders per store were approximately 420, with average order value of 11.8-12 yuan, monthly revenue approaching 150,000 yuan, about 12,000 yuan less than June-August. Actual receipts were approximately 120,000-124,000 yuan, with receipt rates just above 80%.

**Q4 Expected Growth**: Q4 receipt rates may improve as the company plans to launch customer acquisition activities and combination meal packages. While revenue values will decrease, overall performance is expected to exceed last year, with projected GMV growth of 10-15%, benefiting from product innovation, coffee product deployment, and delivery platform competition advantages. May-July next year may face downward pressure, with the company planning promotions on lemon-related beverages.

**II. Brand Development: Lucky Cup's Rise and MIXUE GROUP's Product Layout**

**Lucky Cup Store Performance Double Growth**: As of latest data, Lucky Cup has 8,000-8,500 contracted stores, with 7,500-8,000 stores opening in September. This year's GMV growth has been significant: Q1 single-store daily average GMV approached 3,000 yuan, Q2 approximately 3,800 yuan, Q3 4,200-4,300 yuan, compared to last year's full-year daily average of approximately 2,700 yuan. Receipt rate is about 75%. Growth stems from: 1) company preferential policies for franchisees, and 2) product adjustments adding fruit teas and ice cream products. The popular "Duomei Iced Tea" accounts for over 30% of sales. Future plans call for controlling single-store products to around 40 items.

**MIXUE GROUP's Strategic Response**: MIXUE GROUP has significantly increased product innovation efforts this year, with coffee SKUs doubling compared to last year. Facing lemon price increases, the company launched "Bawang Bucket" in June, reducing fresh lemon usage while increasing lemon juice content. Strategic partnerships with more suppliers have been signed, with lemon pricing and supply expected to be stable next year. Next year's plans focus on developing the coffee category, promoting lemon-related beverages, with normal budget allocation for trendy products.

**III. Coffee Category: Dual-Brand Differentiated Layout Shows Advantages**

**Brand Coffee Offerings**: Both MIXUE GROUP and Lucky Cup are simultaneously developing coffee categories. MIXUE GROUP's coffee uses drip coffee or pre-ground coffee powder brewing, with taste quality slightly inferior to Lucky Cup. Lucky Cup uses coffee machines for freshly ground coffee beans, providing better coffee aroma. MIXUE GROUP's main brand offers approximately 5-7 coffee SKUs, while Lucky Cup focuses on addition strategy, with final target total SKUs of 40-50 items, with coffee flavors accounting for about half.

**Dual-Brand Strategy Avoids Competition**: Since Lucky Cup has relatively fewer stores than MIXUE GROUP, with year-end target of 10,000 stores, deploying coffee through two brands helps avoid market share cannibalization. MIXUE GROUP and Lucky Cup have clear differences in product materials, production processes, and product structure.

**IV. Delivery Situation: Subsidy Reduction, Structural Changes in Proportions**

**Gradual Subsidy Reduction**: Delivery subsidies peaked in May-June, now gradually declining. For example, Taobao's early subsidies covered about 70%-80%, now covering less than 50% or even 40%+. Future trends may return to normal red envelope sharing between stores and platforms, with store actual receipt rates at about 70% during special promotion periods, generally above 75%.

**Delivery Proportion Structure Evolution**: Q1 delivery accounted for about 30-37%, Q2 50-60%, Q3 about 53%. Currently, JD delivery accounts for about 7%, Meituan about 21-22%, Ele.me and Taobao combined about 18%, mini-programs about 5-6%.

**V. Store Expansion and Franchising: Clear Targets with Veteran Franchisees as Main Force**

**Store Opening Targets and Expansion Plans**: Lucky Cup's year-end store opening target is 10,000 contracted stores. MIXUE GROUP's domestic store opening exceeded targets, while overseas store numbers remained essentially flat. Next year's store opening targets are expected to be determined in November-December. The company plans to reach 80,000-90,000 stores for domestic MIXUE GROUP and Lucky Cup combined within 3-5 years. This year's new stores are expected to be 4,000-5,000, next year approximately 4,000-6,000. Lucky Cup plans to expand into Southeast Asian markets next year.

**Veteran Franchisees Drive Store Opening**: Franchisee enthusiasm remains high, but new franchisee approval rates are below 1%. Store opening is mainly driven by veteran franchisees, accounting for about 90%. Veteran franchisees are actively opening stores because stores are profitable. From Q1 to Q3, store revenues increased, with Q2 and Q3 average actual receipts around 120,000 yuan and net profit margins of about 17-18%. While not historically the best, performance is much better than last year.

**Q&A Section**

**Q1**: How was the National Day holiday situation and quarterly revenue trend comparisons?

**A1**: This year's National Day holiday showed good year-over-year growth of about 20%-30%. Tourist cities like Xi'an and Chengdu performed well. Flagship stores opened this year showed excellent performance, such as Chongqing flagship store achieving daily revenues of 200,000-300,000 yuan. This year's National Day increment grew 25-30% compared to last year.

From GMV perspective, Q1 showed growth momentum with same-store daily actual revenue increasing 5-6 percentage points, mainly from higher transaction values. Q2, boosted by delivery competition, saw store average actual revenue grow 12%-15% year-over-year. Q3 showed store average growth, with July growing over 17%, August-September showing 10% year-over-year cash receipt growth, primarily from increased transaction volume.

**Q2**: How do current subsidy levels compare to peak periods in July-August, and what measures are planned for next year's high base pressure?

**A2**: Subsidy levels peaked in May-June and are gradually declining. Taobao's early subsidies covered 70%-80%, now covering less than 50% or even 40%+, with stores bearing increased proportions. Long-term outlook suggests return to normal patterns with stores primarily bearing red envelope costs.

Facing next year's high base pressure, Q4 will focus on coffee category growth. Next year may see significant promotions on lemon-related beverages, with normal trendy product budget allocation.

**Q3**: What was MIXUE GROUP's Q3 store average actual revenue growth rate?

**A3**: MIXUE GROUP's Q3 store average actual revenue growth rate was approximately 10-13%.

**Q4**: Was the National Day daily average comparison based on GMV or actual receipts? How did October receipt rates change? What drove higher growth in the first 8 days of National Day compared to previous months?

**A4**: National Day daily average comparison was based on GMV. October receipt rates improved month-over-month, higher than Q3. The first 8 days of National Day showed higher growth due to the extra holiday day this year, increased tourism with strong performance in tourist cities like Xi'an and Chengdu, and excellent performance from newly opened flagship stores.

**Q5**: How did Lucky Cup perform during National Day and throughout Q1-Q3?

**A5**: Latest data shows Lucky Cup has 8,000-8,500 contracted stores, with 7,500-8,000 stores opening in August-September. From GMV perspective, this year showed significant growth compared to last year: Q1 single-store daily average GMV approached 3,000 yuan, Q2 about 3,800 yuan, Q3 about 4,200-4,300 yuan, compared to last year's full-year average of about 2,700 yuan, representing about 1.5 times last year's performance.

However, with intensive promotional activities this year, receipt rates are about 75%, slightly lower than last year. Rapid store opening this year stems from: 1) company preferential policies for franchisees during July-October with gradually declining incentives, and 2) product line adjustments reaching over 70 items including fruit teas and ice cream beyond coffee, with bestselling "Duomei Iced Tea" accounting for over 30%.

This comprehensive analysis demonstrates MIXUE GROUP's strong operational performance across multiple dimensions, with strategic positioning for continued growth through diversified brand portfolio and product innovation.