13 Comments
Apr 3, 2023Liked by Gad Allon

I love that S.C.A.L.E. framework!! Also, it seems like they are closer to a human operated vending machine than they are a cafe, so I wonder if a line of coffee vending machines would beat them on both cost and convenience. For just cheap and easy caffeine dosing, I use gum (12.5 cents for a 50mg dose).

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Apr 4, 2023Liked by Gad Allon

Don't forget about Luckin in China! They appear to be making a resurgence after their fraud "scandal" and are probably the ultimate example of coffee/tech-enabled/blitz scaling. Enjoyed the article as always Gad

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I run two boutique cafes in Boulder, CO. I've been watching this story for a long time.

This is what happens when tech investors and tech founders meet the world of F&B.

Running scaled F&B is the farthest thing from a tech company that one can get. It is slow, involves humans and physical retail. None of those things scale fast in the United States or Europe as far as I know. The only place they scale quickly that I know of is China where labor is plentiful and there is a blue ocean for coffee (see luckin, etc.)

Beware rapid scale into a mature market. Customers are discerning and have a variety of choices across need sets. Mediocre hospitality / retail / product will not be tolerated.

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A perfect side to my laborious hand-ground, hand-pressed espresso. Your class on scaling was transformative, and this article was a nice reflection!

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Apr 4, 2023Liked by Gad Allon

Happily will agree with you and take my coffee break without venture funding & scale.

What other non-VC funding sources do you think that firms with growth aspirations like Blank Street’s should have been pursuing instead?

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guess they are in dire need of product glow-up, that hits different with genZ.. beyond but around the coffee.. the way WiFi and not coffee stanned Sbucks .. perhaps a game u play only while you vape while sippin the coffee, lets disc. a 1-night date, or get slay at it:)

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