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Donatello: How to start up a beverage shop chain in China

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Carlo Asta

on 23 December 2013

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Transcript of Donatello: How to start up a beverage shop chain in China

3. Donatello: the beverage shop
1. The startupper: Donato Mallo Marrone

2. Why starting up in China and how

3. The Donatello Beverage Shop

4. Conclusion and learnings
How to start up a beverage shop chain in China
The original idea: High quality Coffee Shop
An Italian Starbucks but with high quality food and the so called "
Pizza al taglio

Problems and barriers:

cost of the rent
management of fresh ingredients

Shifting the business model: the beverage shop
Less rent to pay: better location to get
No problem of fresh ingredients
A small take away beverage shop with a wide range of different fresh and tasty drinks at a fair price
The Concept
The monthly costs
Rent: 30.000 RMB
Staff: 15.000 RMB
Suppliers: 10.000 RMB
Bills: 5.000 RMB
How do I make Profits?
Average price: 12 RMB
How to sell 2.2 drinks per minute?
With a damn good location!
Main competitors
Taiwanese, Korean and Japanese beverage shops
Value proposition
All the drinks in the same place: coffee, milk tea and fruit juice
60.000 RMB
Revenues needed to make reasonable profits: 100.000 RMB/month
How many drinks the shop has to sell?
8.333 per month
277 per day
30 per hour
2.2 drinks per minute
You need the "
2. Why starting up in China and how?
Why Shanghai?
Having good friends here
Contacts with institution and business partners
Good city infrastructure

Why this business?
Familiar with Food & Beverage industry when working as a lawyer for the Italian firm
“Know how” from his previous clients
Comparatively low entry barrier

The process of getting a license is totally different from Europe
Time consuming (6 months)
Case by case review, where, who, when, what, etc
Small start-up are not well treated by government
Cannot get a good location

How to start up?
Get a business licence!
1. The startupper: Donato Mallo Marrone
27 years old
Working in an italian law firm in Shanghai
25 years old
Start to learn chinese language and law
32 years old
Quit his job as a lawyer and start up his company
After swimming in a pool, you want to try the sea, no matter if it's more dangerous
Why does he choose to move forward?

"If you work in China, after several years:
either you go big or you go home!"
Under forty, you need to be a RISK-TAKER
January 2012
Why China?
"Nothing is easy, everything is possible"
Nothing is easy...
Entry barriers
Language and culture
Business environment
Huge competition
Different regulation
...Everything is possible!
Huge demand in China

EU Population + USA Population
= 1/2 CH Population

Curiosity of chinese customers

If you are
you eventually succeed
but never persist in your mistakes
4. Conclusion and learnings
Be consistent, never give up
Don't persist in mistakes, understand when to change.
Give yourself deadlines
Be not only resistant but also efficient
Three Businesses at the same time
Food and beverage

More business, more relationships

A friend as a partner for Novantanove
Economies of scope for realtionships
Only limit you have is time
Main focus is Donatello!

But Why?
Online is big in China
Target costumer
: chinese, age between 20-35
: with no brand, impress!
: still huge importance
Only investor is Donato!
- 10 years as a lawyer
- No investors, no planning needed
- No interest to pay

The Market Reaserch
Do it by yourself!

Unless you want to spend more than 100.000RMB to outsource

Go around, ask people, analyze menus and potential competitors. Personal feedback is the most important thing.
Fresh taste, special drinks and italian style
More businesses, more relationships
New Venture Creation

Fudan University

Start-up Research
23rd December 2013

Carlo Asta
Giorgia Pontico
Martin Huang
Bente Lorezen
Korinna Staufienbel
Grant Bay
Full transcript