Louisa vs. Starbucks: Building a Third Place on a Takeout Foundation

Originally published 2021-10-09Robin’s commentary (figures relayed from reporting; not independently verified)

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English translation of the Chinese post originally published 2021-10-09. Translated 2026-10-30 with AI assistance. Historical figures and claims have not been updated or independently verified. 中文原文

Reading guide

Robin compares Louisa and Starbucks. Louisa expanded quickly through franchising, with roughly three franchised stores for every company-operated store. Revenue from franchised stores includes only coffee beans and partially prepared food, so comparing revenue alone may not be fair. He notes that takeout accounts for about 40% of Louisa’s revenue. With takeout as a foundation, Louisa expands its seating areas as much as possible to encourage longer visits and higher spending per customer, rather than pursuing table turnover. This resembles Starbucks’ “third place” philosophy and 7-Eleven’s earlier expansion of in-store seating. (Ratios are relayed figures from October 2021 and have not been independently verified.)

Key points

Franchised and company-operated stores are in a roughly 3:1 ratio, so comparing revenue alone is not entirely fair (relayed figures).
Takeout accounts for about 40% of revenue, yet seating areas are expanded to encourage longer visits.
Increase spending per customer rather than pursue table turnover.
Robin draws parallels with the third-place philosophy and 7-Eleven’s in-store seating.

One clear path continues into the distance among several branching routes, suggesting choice and focus. — Entrepreneurship & strategyThematic illustration · AI generated

Full text — English translation

Louisa vs. Starbucks Louisa has rapidly expanded its store network and built scale through franchising. Its franchised and company-operated stores are in a roughly 3:1 ratio, so comparing revenue alone may not be entirely fair: revenue from franchised stores covers only coffee beans and partially prepared food. One point is worth noting: takeout accounts for 40% of Louisa’s revenue. With that revenue as a foundation, Louisa expands its seating areas as much as possible so customers stay longer and buy more food, increasing spending per customer rather than pursuing the table turnover that restaurants typically seek. This can be seen as Louisa putting into practice the same “third place” philosophy as Starbucks: beyond home and the office, people need a third place where they can relax. It also resembles the thinking behind 7-Eleven’s earlier expansion of in-store seating. Replacing valuable shelf space with seating generated considerable discussion. In the end, deeper connections and greater loyalty between 7-Eleven and people in the surrounding community created more value instead.

These articles are personal notes, book excerpts, and collected reprints. Figures and events reflect the time of the original publication, are not current information, and do not constitute investment advice.

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