Will Cafe X Replace All Coffee Shops? | Co-Founder & CEO Henry Hu @ Draper University


Hey everyone, you’re about to watch the founder
of cafe x. His name is Henry, who and he’s got an amazing
story. If you want to be one of the entrepreneurs
learning here at Draper University, just like the people you see in the audience, make sure
you apply today at Draper university.com. Hope you enjoy the video, I guess, do you
think you guys will replace all coffee shops in the next, whatever? Oh, well, so the machine that we make the robotic
coffee bar can actually be put inside a coffee shop. So I think we’re working on some some concepts
where we have the machine basically in a fairly traditional coffee shop. And it’s making it serving the espresso drinks
and like macho lattes, chocolate drinks. And like cold brew, and basically like beverages,
but it’s still a cafe, and you can have people there, they’re preparing, like pastries or
sandwiches, of course, creating customers. So it’s a like, we’re not we’re not like making
this machine to kill all the cafes in the world. We’re like, let’s make some let Jake deploy
these in in places where he will want to get coffee and don’t want to wait in line. But if you want to go to a cafe and sit there
and have food, like you just also just put up machine in the cafe, its food, one of those things that you guys
will move into. I know I’ve seen a few companies that make
hamburgers. I think I’ve seen some pastries, there’s actually
one of our alums that makes pastries in Argentina. with robots. So are you guys moving into food? It definitely at some point in the future. So like one of the reasons we use a robot
arm is because it’s very, like, flexible. Or we can, we can basically so we basically
like design the machine to have a robot or move a container around two different machines
inside this big kiosk. So that means as over time, as we like, upgrade
our menu or expand the menu or change, you know, two different things, it’s fairly easy
to do that you basically just like take a coffee machine out and put something else
in. So for example, like the, our initial machine
just had like two espresso machines and eight ounce cups, which is we designed that in Hong
Kong and eight ounce only, is definitely not big enough for the US market. So we immediately added bigger cup sizes. And then we also added ice drinks recently
to basically the same machine, which is ice drink. We Yeah, so we like to literally just like,
move the two coffee machines apart, and then put an ice dispenser in the middle and reprogram
the robot. It’s like okay, now we have our menu is twice
as big, we have ice drinks. And then our newer machine has a beer top
that’s like cold brew coffee and tea. And then we have an even newer machine that
we’re launching at SFO in September, that’s going to basically like expand on that even
further and have this like really massive market. Massive menu. Yeah, great. In terms of the business model, you mentioned,
hey, we can be inside cafes. Are you guys going into more of a robot as
a service type of business where you give this to let’s say, the coffee shop across
the street? Or will you always owned, you know, the whole
brand, the whole experience? Yeah, currently, we only own and operate. So we have three locations now operating. And then we’ll have a few more by the end
of the year, including at SFO where the we get like emails every day from people like
all over the world, they weren’t a franchise or license or just like buying machines. I think people have offered people have requested
to have their machine in their very large house. Like a big Yeah. So basically, we’re like production constrained
right now. We really believe in being like fully vertically
integrated. So we do all the hardware engineering, software
engineering, and we build the machines ourself. So it basically it’s going to, it’s going
to take a little bit of time for us to set up, basically refine the product, or optimize
it on the engineering side to the point where we feel comfortable building a lot of them. And then we have to build like a initially
a small factory and then a bigger factory to actually build the machines. So in the long term, we definitely would love
to do that. I think like licensing internationally or
franchising makes sense. And then in terms of working with other coffee
brands, that’s kind of already like baked into our, our brand. So with cafe x we partnered with local coffee
roasters. So if you look at our menu, there’s intelligentsia
ritual, equator, these are all like, kind of really well known local coffee roasters,
with their own kind of cult followings. So we’re very open to working with other coffee
brands. When I went to one of your locations, I think there
were like, four different types of milk that you could use. And I read somewhere that you guys are the
only ones that offer like a specific type of milk that’s really not found everywhere. So we we we actually we were one of the first
coffee places in San Francisco to offer oat milk. It’s It’s, it’s, it’s for a brand called Oatley,
which is from Sweden. And they like launched in the US last year. And that’s been like just like taking off. So like milk of the year. Milk Of The Year of 28. Was oats milk, and I read somewhere for 2019. That’s going to be hemp milk Hemp milk. All right.

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