As soon as I entered the supermarket, I was stunned. The same person had to cash in and make coffee, which not only made me unfamiliar with the operation, but also raised doubts. Will they just make coffee for me without washing their hands after collecting the money? "This is a common idea among many netizens about Novah.
In the nationwide scaling frenzy of coffee chains, the domestic coffee brand Novah, born 7 years ago, has expanded its stores through convenience stores and currently has about 10000 stores. It has also secured a large-scale financing for the catering industry in 2026.
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The 'Wanjia Store' is regarded as a watershed in the development of chain catering. In fact, when entering most Novas coffee shops, consumers can clearly feel that 'this store is not that store', in Novas' own words, it is a 'store within a store'.
Recently, a reporter from the Daily Economic News (hereinafter referred to as the "reporter") visited and found that in a convenience store in a supermarket, a desk and a coffee machine can form a "store". The joke made by netizens about "whether the smell of Kanto cooking next to it will seep into the coffee" is not groundless.
Moreover, its already low franchise threshold is still being lowered. In July, Novartis launched a new franchise policy worth 49800 yuan, and the store in store cooperation model can be embedded in commercial scenarios such as convenience stores, internet cafes, and snack discount stores. A Norwegian investment consultant gave examples of potential franchisees' business formats, including nail salons, gyms, clothing stores, and flower shops, but they need to obtain a catering business license, etc.
Based on this, it is inevitable that some netizens have doubts about Novah's quality control and franchise model.
Any innovative model will face the challenge of management radius in the process of scaling up, which is a common phenomenon in the industry, not unique to store in store. In response to the challenge of quality consistency in multiple scenarios, Novartis has established a strict management and training system, "Novartis responded to every reporter.
Parasitic business
The ability to achieve a store in store model where every crack is squeezed in is not unique to Novartis, but Novartis is the core practitioner of this model.
According to the reporter's understanding, 80% of the data from Novawan stores are in store. Due to relying on the existing store format, a new coffee brand is "stuffed" into the venue, also known as the "parasitic" model in the industry.
Nowadays, in many convenience stores, you can still see the locations of Luckin Coffee and Kudi. However, the store in store layout of various brands has formed a clear differentiation in their operational models. For example, Luckin Coffee and Kudi also have in store stores in restaurants or supermarkets, but the staff wear coffee brand uniforms and are dedicated to coffee related business.
And for Novas, who has joined the supermarket, the coffee makers are the original staff members of the supermarket. A corner of the table can be opened and a coffee machine can be placed. Many supermarkets also sell cooked food, and the staff can cook noodles, grill sausages, and make coffee for consumers without difficulty, "said a brand development personnel of Novartis when communicating with potential franchisees." Making coffee is not about building airplanes and rockets
After visiting multiple Novartis cooperative stores in Beijing, Shanghai, and Chengdu, it was found that only one convenience store employee is often responsible for managing the entire store and making coffee.
During on-site observation, it is common for shop assistants to make drinks without wearing hats or masks. The operational level of practitioners varies greatly, with some employees being proficient in production, while others need to refer to the manual to prepare drinks.
In some stores, the raw material area is not strictly isolated, and reporters can pick up beverage ingredients at will and then return them to the staff.
The use of similar methods by street vendors may not be a concern to the public, but when it comes to a brand that claims to have surpassed 10000 chain stores, the gap in standard execution is particularly prominent, "commented a catering industry practitioner." Because catering is not about building airplanes and rockets, the threshold for entry is low, and anyone can do it, so quality control of chain brands is particularly important
"A while ago, when moving tiles to do activities, I placed an order for one penny and one cup in Tiktok, and the order volume was so large that people were almost 'ruined'." Every time a reporter visited as a consumer, an employee of a good neighbor convenience store in Beijing said, "Those two days, I had more than 300 cups a day, and I didn't even have time to drink water or go to the toilet. When I opened the raw material bottle, I didn't notice that there was gas in it, and the bottle cap popped up and hit my eyes, and the whites of my eyes were all congested. I was only an hourly worker, and I didn't pay insurance. Even if I made more coffee, I still got the original salary of more than 1000 yuan."
'Store in store' is not a dilution of brand positioning, but an extension of consumer scenarios. As mentioned earlier, we want consumers to be able to easily buy a cup of coffee. When interviewed about quality control management issues by reporters, the company replied, 'New stores are taught by dedicated trainers to ensure that convenience store staff quickly meet barista production standards. At the same time, daily operational inspections and irregular mysterious visitor double line inspections are launched, covering material shelf life, equipment cleaning, operation flow, and hygiene details. In addition, human operation variables are minimized through highly standardized SKUs (single products) and digital equipment.'. ”
Extremely low-cost store opening
In 2019, Guo Xingjun founded Novartis. This year, the demand for coffee in the Chinese market is rapidly rising. Luckin Coffee had thousands of stores by the end of the year, while Kudi Coffee had not yet been established. Shortly after developing independent stores, Novartis entered the store in store model, using food delivery platforms as the main channel.
Wang Yong (pseudonym) joined Novartis around 2021. Prior to this, he had already run an independent boutique coffee shop and subsequently added a Nowa point within his own store. At that time, the franchise fee was only a few hundred yuan. I hung the Nuowa sign in my own coffee shop and directly used the store's existing coffee machine. I only purchased coffee beans, milk and other raw materials from Nuowa, and 90% of my business relied on takeaway orders, "Wang Yong told reporters.
At that time, we could sell 400 cups a day, of which 100 cups of materials were given away by Novartis. With such a large order volume, we had to hire employees, including rent, utilities, and labor. I didn't earn much, so I might as well make my own coffee, which was easier. So after more than a year of cooperation, I sold this Novartis benchmark store. "Wang Yong said frankly," Quality is difficult to control, and that bean only contains caffeine. I conservatively estimate that the cost of one cup is less than 2 yuan
In his opinion, coffee now needs to be rolled up in quality to truly win over consumers. "The price and cost of rolling have already died down. Look, some products from Luckin Coffee now use single origin coffee beans, such as those from Guixia with high prices and small production volumes.
In November 2024, Novartis officially announced a partnership with the chain convenience store brand Jianfu, which Novartis called the first officially announced partnership brand in the "Coffee+" joint venture plan. Nowadays, Nuowa has appeared in regional or top chain convenience store brands such as Meiyijia, Shangshang, and FamilyMart.
How low is the cost of adding Novas to a chain brand convenience store? Recently, the reporter consulted with the investment personnel of the convenience store as an intended franchisee, and their introduction stated that the total cost is about 11000 yuan, including a 5000 yuan coffee machine equipment mortgage fee and less than 6000 yuan for the first batch of material costs, with an area of less than two square meters.
This measure has driven the rapid expansion of Norway's stores, with the number of stores exceeding 2000 by the beginning of 2025 and over 10000 by the end of 2025. The unique business model and fast opening speed have introduced many investors to Novartis. According to Tianyancha, Novartis has completed 7 rounds of financing since its establishment 7 years ago, and completed hundreds of millions of yuan in Series C financing in January 2026. The investors include well-known investment institutions such as Jinshajiang Venture Capital and Grassroots Zhiben.
According to public information, on April 28, 2026, Novartis officially announced Yang Yang as the global brand ambassador.
Further expansion of cooperative formats
Noah's shop in shop is still accelerating its proliferation.
On July 10th, Novartis released a new franchise policy worth 49800 yuan, accelerating the integration of in store formats into existing commercial scenarios such as convenience stores, internet cafes, and snack discount stores. According to the information sent by the investment manager, this new single store franchise plan can actually be joined for 29800 yuan, requiring self provided equipment and no commission or management fee. Based on this minimum investment, the payback period can be as short as one month or as long as three months. It is worth noting that the cost estimation standard is based on the daily consumption of 120-200 cups.
If placed in a nail salon, nail technicians have to do both nail work and coffee for customers, which may be too busy and require hiring another employee. If placed in a gym, there is no need to add people because most gyms are equipment, and employees in the gym are responsible for supervising whether consumers operate safely and regulations, checking and making a cup of coffee, which can be balanced. If opened in an internet cafe, the business effect is also good. "A Norwegian market development personnel told potential franchisees that the premise is that the business premises can obtain a catering business license, have water supply and drainage conditions, etc. The core goal of this type of shop in shop is not to rely on coffee for profit, but to drive the main business customer flow through coffee.
Intentional franchisees revealed that Novas can also help them directly find supermarkets to cooperate with. You can bring your own store to cooperate, or Novartis can help you find it. The starting threshold is 20. In this joint venture model, cooperative stores and on duty staff are not directly managed by franchisees. What mechanisms has Novartis set up to protect the income and rights of investors?
Firstly, we have transparent account sharing with suppliers and implement real-time order sharing through digital systems, ensuring clear and traceable fund flow. Secondly, we also have contractual constraints that clearly define the rights and interests of the brand and operator, safeguarding the investors' right to know and their right to profit.
After tracking the store in store model of Novartis for more than two months, it was observed that the brand's commission model for the above-mentioned fund based franchisees had changed. Originally, for every cup of coffee sold in the store, franchisees could receive a commission of 1.3 to 1.5 yuan. However, when Novartis launched a 0.1 yuan per cup special promotion, the commission standard for franchisees remained unchanged.
Starting from early July, the commission model has changed to commission based on actual transaction volume. Market development personnel have expressed to potential franchisees, "For example, if this cup of coffee sells for 10 yuan, you can split the profit based on 10 yuan
Insiders have also confirmed to reporters the detailed changes in the distribution of accounts for the aforementioned franchisees. It is not difficult to see through the surface actions of changing the distribution rules and implanting multiple business models that the underlying logic of the store in store model of Novas is very clear, and it is not aimed at the profit of coffee itself. Coffee is more like a low-cost drainage tool.
After the introduction of the new franchise policy in early July, nail salons and flower shops have not yet joined, and the future is uncertain. The logic behind introducing various new formats is to encourage users to stay more in their main business consumption scenarios through coffee, and to increase the customer flow of franchisees' main businesses. For example, franchisees such as hotels and e-sports internet cafes can invest several million yuan in their main stores, and selling coffee can earn an additional income of ten to twenty thousand yuan per month, which is a 'drizzle' income. However, coffee can be used to boost the consumption of other related products, "said the insider.
Store in store route differentiation
For this store in store model, different brands present different attitudes.
In May 2024, Kudi officially announced the COTTI Express convenience store and also partnered with chain brands. Recently, the reporter consulted with the personnel of Kudi Investment Promotion as an intended franchisee, and they stated that currently only the standard store (independent store) model is open for franchise.
When asked about store in store franchising in convenience stores, Luckin Coffee's market development personnel said, "That was a key focus we placed on when we first started attracting investment in 2018. At that time, the number of stores was small and the brand was not yet mature. The company quickly expanded in the form of 'small shop fast coffee'. However, since last year, we have had store area requirements for franchisees, with a minimum of 36 square meters
In addition, Tims Tianhao Coffee has also established a strategic partnership with Yijie Coffee, a subsidiary of Sinopec Yijie, by opening in store stores. But according to sources close to Tims Tianhao Coffee, its shop in shop is similar to a "coffee corner" in a gas station, with a separate counter. We can't squeeze all kinds of formats into one coffee shop
But there are also successors competing with Novas for the position of "top store in store" – Xiaoka Coffee, which recently completed a new round of financing. Every time reporters see the presence of small coffee shops in stores such as Liangpinpuzi, they occupy a corner of the snack shop and install fully automatic coffee machines, with snack shop staff working part-time to make coffee, just like Novas.
At the end of June, after consulting with reporters as potential franchisees, it was learned that this store model adopts a direct sales model, mainly through market research conducted by the brand in various regions. But by mid July, the investment manager took the initiative to contact potential franchisees, stating that the small coffee shop in store model could be opened to individual franchisees, but at least 5 stores would be invested, with each store costing 66000 yuan, and a commission of 2 yuan per cup would be given to investors. The brand has set a goal of expanding 100000 stores within 3 years for external promotion, and is referred to as the "first coffee stock".
Long Zhen, a foresight capital partner and an expert in the franchise industry, pointed out another risk point of this model: return to the current cycle. Only by keeping costs low enough can franchisees recoup their costs as soon as possible. In his view, the store in store model is a vending machine model that targets high-quality existing locations and belongs to closed site selection, which is different from the open site selection of independent stores.
In the eyes of industry insiders, if there are food hygiene issues, it may trigger a chain reaction, so the closure rate of this model will also be relatively high.
Why do different coffee brands have different attitudes towards the in store model?
We do not evaluate the specific models of other brands. Objectively speaking, we are actually different, "Novartis told reporters
Daily Economic News