- New 20,000-ton capacity plant set to boost production efficiency and quality while cutting costs
- Company continues rapid expansion with integrated supply chain and self-sustaining business model
Nowwa Coffee, a Shanghai-based coffee chain, yesterday broke ground on an advanced, fully automated roasting plant in Fenghua, a district in Ningbo, Zhejiang province.
The new facility, which spans 20,000 square meters, is set to deliver a design capacity of 20,000 tons per year, marking a significant leap in production scale from its current facility, which produces only a fraction of that.
The plant will automate the entire process, from raw beans to roasted coffee, streamlining operations and increasing production efficiency to a level that will allow Nowwa to scale its output by tenfold, the company said in a press release.
Founded in June 2019, the coffee chain claims that automation will improve product quality by over 30%, reduce raw material costs by around 5%, and lower labor expenses by more than 50%.
This investment comes as Nowwa pursues an aggressive expansion strategy, aiming to open more than 10,000 stores in the coming years.
Despite fierce competition from mass-market rivals like Luckin Coffee, Cotti and Mixue Bingcheng, the company has opted for heavy investment in fixed assets, choosing a more vertically integrated approach to control costs and secure long-term supply.
The new roasting plant addresses a critical bottleneck in Nowwa’s scaling efforts, providing the infrastructure needed for sustainable, large-scale production.
Price volatility
Coffee bean prices are heavily influenced by international futures markets, climate events, and geopolitical tensions.
Nowwa’s in-house roasting capabilities are designed to act as a stabilizer, allowing the company to lock in high-quality raw bean supplies ahead of time and protect against price spikes.
Meanwhile, by cutting out the middleman in its roasting process and working directly with bean producers, Nowwa can pass more savings onto its franchise partners.
Combined with the scale advantages of the new plant, this ensures more favorable margins for both the company and its franchised stores.
According to market data, as of December 11, 2025, Nowwa Coffee had surpassed 10,000 stores nationwide, with 70% of these being franchised locations, a majority of which are co-operated with convenience stores.
This model has enabled the brand to rapidly expand its presence in key urban centers across China.
