China’s coffee industry has changed quickly. During the last boom, many brands rushed to open stores. Some faded. Others struggled. But Algebraist Coffee chose a different path. It grew slowly and focused on good products and steady income.
Founded in 2015, Algebraist became popular for its unique coffee and clean, simple store design. From 2019 to 2022, the brand raised money from major investors, including Wuyuan Capital, Genesis Capital, Tencent, and Oriza Holdings. Back then, things looked bright. But behind the scenes, problems were growing.
The founder, Dai Yi, said the early years were fast and exciting, but many brands ignored costs. They opened too many stores too quickly. That mistake hurt them when the market slowed. Algebraist also planned to open more than 170 stores before the pandemic. But when COVID hit, they stopped work on 80 of them. That move helped the company survive.
“Back then, I admired those who expanded quickly,” Dai said. “Now, I care more about staying strong every month. Profit matters more than speed.”
This focus has helped Algebraist stand out today. In early 2024, it raised another round of funding. SND Financial Holdings led the deal, bringing total investment to more than 200 million RMB, or about 28 million USD. The new funds are not for daily costs but to grow the brand and improve its drinks.
Algebraist made another key change in March 2024. It launched a partner entrepreneur program. Instead of only running its own shops, the company began franchising. Now, most of its new stores are franchises. The brand opens about eight to ten stores each month and has passed 150 in total. But it avoids the race to grow too fast.
Dai explained that the team sets clear rules and only grows when it feels right. “We don’t see a big change in what people want. So, we’re moving slowly and staying stable,” he said.
The company still has its strongest base in cities like Shanghai and provinces like Jiangsu and Zhejiang. It is exploring other regions but doing so with care. While big names like Luckin Coffee and Cotti Coffee fight for the spotlight with low prices and speed, Algebraist stays focused on steady progress.
What helps the brand stand out is its product quality. Dai believes that everything starts with great coffee. That means keeping a strong team, listening to customers, and choosing store locations that fit their daily lives.
This product-first mindset shows in their drink lineup. One of its top sellers is the rose breve latte, which first launched in 2019. In 2024 alone, the brand sold over 650,000 cups. Another hit was the French cheese latte under the Kiri label. It sold 117,000 cups in its first month. Customers enjoy the fresh taste and regular new items.
Algebraist also works hard to keep prices fair. It manages staffing, supply chains, and store formats closely. These efforts help control costs and support long-term success. As a result, the company reported turning a monthly profit starting in the third quarter of 2024. Every month since then has shown better numbers.
Dai believes the lessons of the past boom still matter today. “We need to make smart choices. That means fewer risks and more focus on what people truly want,” he said.
While some rivals faded, Algebraist held its ground. Its story shows that fast growth is not always smart. Profit, planning, and quality can lead to real success in a fast-moving market.
As more people in China enjoy coffee, the industry keeps growing. But only some brands will stay strong in the long run. Algebraist Coffee Growth proves that steady steps, loyal customers, and great drinks can win in the end.
