If you’ve walked through Berlin lately, you’ve seen it. A bright red storefront.
Big bold letters: “Espresso for €0.99.”
This is Cotti Coffee, the Chinese chain that went from zero to global heavyweight in four years and now claims the title of the world’s third-largest coffee brand.
After rattling Germany with what locals call “Temu-style” pricing, Cotti has landed in London. And it isn’t coming quietly.
Cotti’s formula is brutally simple.
One Americano for €1.99. Latte for €2.99. App-only deals. Small stores. No-frills interiors. Heavy influencer buzz.
It’s retail warfare disguised as caffeine. The target? The same urban professionals and students who fuel giants like Starbucks.
But Germany is not an easy ground. When Cotti opened in Berlin, critics argue the coffee tastes thin like water. NGOs question whether €0.99 espresso can possibly respect farmers or sustainability standards. The German Coffee Association also warns that racing to the bottom on price is not a long-term strategy in a quality-driven market.
But here’s the uncomfortable truth: the stores are still busy every single day.
Now Cotti has came to London and has since opened on Middlesex Street and Camden High Street.
Cotti Coffee
This time, the challenges feels different.
A city like London runs on efficiency. Speed matters. Apps matter. And above all, price matters. Here, convenience often beats familiarity. While the market is dominated by Starbucks, Costa Coffee, and Pret A Manger, these are all brands built on scale, consistency, and commuter flow. Within it brand loyalty is often transactional.
It seems Cotti’s model will fit this ecosystem disturbingly well.
Three drinks for £1.99 each if you download the app. That’s outrageous value in London where the cost of living crisis had been weighting on everyone’s budget.
But behind the scenes, their operation tactics are even more aggressive.
Massive supply chain hubs in China. Tight logistics. Vertical control. Former Luckin executives running the playbook that once redrew China’s coffee map.
This isn’t a normal café brand. It’s a tech-enabled beverage logistics company.
The Real Question: How Sustainable Is This Business Model In The Long Run?
The first problem is ethical. Ultra-low prices invite scrutiny. Consumers in London are increasingly aware of sourcing, carbon footprints, and labour standards. “Cheap” can quickly become “exploitative” in public perception.
The second is financial. Discount-led growth burns cash. Thin margins leave no room for operational mistakes. And London’s specialty coffee culture is far less forgiving than price-led markets.
But here’s the strategic bet Cotti is making: In a cost-of-living crisis, price is culture. If a commuter can get a £1.99 flat white that’s “good enough,” frictionless to order, and five minutes faster than Pret — habit will beat ideology.
More, Cotti Coffee has proven it can scale at a staggering pace. With 18,000 stores globally, it has the logistical muscle and financial backing to endure a prolonged price war.
Germany is effectively serving as a test case for whether an ultra-low-cost model can coexist with a sophisticated coffee culture. As for London? The battle has only just begun.
