Cotti Coffee Germany: China’s 99-Cent Coffee Chain Tested in Berlin

The arrival of Cotti Coffee in Germany marks a new phase in the increasingly competitive coffee market, with the Chinese chain aiming to undercut established players like Starbucks and local disruptors like Lap Coffee. With an espresso priced at just 99 cents, Cotti is betting on aggressive pricing and a streamlined, technology-driven approach to gain traction in a market known for its discerning coffee drinkers. The company, founded by former Luckin Coffee executives Qian Zhiya and Lu Zhengyao, already operates over 18,000 stores across 28 countries, demonstrating a rapid expansion strategy.

Cotti’s expansion into Germany, beginning in January 2026, currently includes seven locations in major cities like Berlin, Cologne, Düsseldorf, and Hamburg. A visit to a Berlin location reveals a minimalist interior, often occupied by individuals working on laptops, and a fully digital ordering system. Customers scan a QR code to browse the menu, which features a range of coffee drinks, matcha beverages, and fruit-flavored frappes, alongside the signature low-priced espresso. The ordering process requires providing an email address or phone number, the purpose of which isn’t immediately clear.

The China Connection: From Luckin to Cotti

The story of Cotti Coffee is inextricably linked to the rise and fall of Luckin Coffee, another Chinese coffee chain that once challenged Starbucks’ dominance. Qian Zhiya and Lu Zhengyao, the founders of Cotti, previously held leadership positions at Luckin Coffee. Luckin Coffee, despite facing accounting scandals, demonstrated the potential for rapid growth in the Chinese coffee market. Cotti appears to be leveraging the lessons learned from Luckin, focusing on efficiency and affordability to scale quickly. Currently, Luckin Coffee operates around 30,000 stores, with over 24,000 in China, positioning it as the second-largest coffee chain globally, trailing only Starbucks, which has over 40,000 stores worldwide, but only 8,000 in China.

Pricing and the Competitive Landscape

Cotti’s pricing strategy is central to its appeal. The 99-cent espresso significantly undercuts competitors like Starbucks (approximately €3.50) and Einstein Kaffee (€2.00). While other beverages are priced competitively with Lap Coffee – an Americano at €1.99 compared to Lap’s €2.00, and a latte at €2.99 versus Lap’s €3.00 – Cotti employs dynamic pricing, offering discounts and promotions through its app. This approach mirrors the tactics used by fast-fashion retailers like Shein and Temu, creating a sense of urgency and value. Watson’s review highlights this focus on affordability as a key differentiator.

The Customer Experience: Efficiency Over Ambiance

The Cotti Coffee experience prioritizes efficiency over ambiance. Drinks are served in disposable paper or plastic cups, and the interior design is functional rather than inviting. The lack of background music and the constant beeping of scanners and cash registers contribute to a somewhat sterile atmosphere. However, the availability of free Wi-Fi and ample seating appears to attract a student and remote worker demographic. A significant portion of customers observed during a recent visit were speaking Chinese, suggesting a targeted appeal to the Chinese community in Berlin. Employees are fluent in Chinese and English, catering to this demographic.

Concerns and Comparisons to Lap Coffee

Cotti’s business model shares similarities with Lap Coffee, another Berlin-based coffee chain known for its low prices and automated operations. Both companies rely on small store footprints, minimal staffing, and digital ordering systems to keep costs down. However, Lap Coffee has faced criticism for its aggressive pricing and perceived lack of quality. t-online.de’s review describes Cotti as lacking charm, and notes the prevalence of disposable cups. The long-term sustainability of these ultra-low-price models remains a question, particularly in a market where consumers are increasingly conscious of quality and ethical sourcing.

What’s Next for Cotti in Germany?

Cotti Coffee’s success in Germany will depend on its ability to maintain its low prices while delivering a consistent product and building brand loyalty. The company’s rapid expansion suggests a willingness to invest heavily in the German market. Further expansion is likely, potentially targeting other major cities and transportation hubs. The company will also need to address concerns about quality and sustainability to appeal to a broader customer base. Monitoring Cotti’s pricing strategy and customer response will be crucial indicators of its long-term viability in the competitive German coffee market. The company’s reliance on digital ordering and data collection will also likely play a key role in its future marketing and product development efforts.

The company’s rapid growth and aggressive pricing strategy are already prompting discussion about the future of the coffee market in Germany, and whether Cotti Coffee can successfully challenge the established players and reshape consumer expectations.