Unveiling the Mysterysurrounding the Popularity of LAP's On-the-Go Coffee
In the vibrant city of Berlin, a new player in the coffee scene is making waves. LAP Coffee, a venture offering affordable coffee options, has recently opened its first branch near Rosenthaler Platz in Berlin-Mitte, with plans for more to follow.
The coffee chain, backed by a diverse group of investors, is shaking up the market with its competitive prices. An espresso at LAP Coffee costs just 1.50 euros, a cappuccino is 2.50 euros, and a flat white sets you back 3 euros. This affordability comes at a time when coffee prices are on the rise due to increased import costs for green coffee, a result of harvest failures in growing countries affected by extreme weather conditions.
LAP Coffee's investors include HV Capital, Foodlabs, Roundtable, Origins Ventures, New York-based VC Insight Partners, influencer Diana zur Löwen, tech entrepreneur Roman Kirsch, Koro CEO Florian Schwenkert, and David Brunier, the founder of the Southeast Asian coffee chain Flash Coffee. Despite initial reluctance from banks to finance the business model, these investors were convinced by the sustainability and profitability of LAP's approach.
The success of LAP Coffee is due in part to its innovative approach to retail, known as Micro Retail. LAP branches are small, with few seats, and payment is exclusively contactless. This modern, space- and cost-efficient model is supported by digital technology, reducing rent and personnel costs. The coffee preparation process is also automated, with fully automated machines from the Swiss brand Eversys used to prepare coffee. A barista is only needed to foam the milk by hand.
Some local cafes in Berlin express concern about the price pressure from LAP Coffee, with resistance being expressed on social media. However, LAP's founder, Ralph Hage, finds this criticism hypocritical, as many of these cafes offer similar prices when accounting for additional costs like rent and personnel.
Despite the rapid pace of expansion, the profitability of individual branches can be monitored and controlled, posing no significant risk. As copycat concepts are likely to emerge due to LAP's successful model, the founders, Hage and Tonalli Arreola, who have previous experience in the startup scene, are confident in the model's longevity, as it has no moats, making it easy for anyone to copy.
LAP Coffee sources its beans from the Berlin roastery 19grams, ensuring a high-quality product. As the coffee chain continues to grow, it promises to bring affordable, high-quality coffee to more locations in Berlin and beyond.
