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  • China’s Coffee Giant Luckin Coffee Brews Rapid Expansion in Malaysias Johor Bahru with Trio of New Outlets

    China’s Coffee Giant Luckin Coffee Brews Rapid Expansion in Malaysias Johor Bahru with Trio of New Outlets

    Luckin Coffee, the largest cafe chain in China, has bolstered its presence in Malaysia by establishing three new outlets in the city of Johor Bahru last July. The first two branches were launched at Sutera Mall and Austin Heights early in the month, followed by a grand opening at the Sutera Mall location. A third branch was then opened in Taman Ungku Tun Aminah.

    Targeting Growth in Johor

    Dr. Jeff Lim, the CEO of Luckin Coffee Malaysia, has highlighted the strategic importance of Johor, Malaysia’s southernmost state, to the company’s expansion plans. He mentioned the potential of a more localized supply chain, job opportunities, and wider access to their digital-first coffee retail experience as key elements supporting the company’s growth in the region.

    Luckin Coffee was established in 2017 by a former tech executive and soon became a notable competitor to Starbucks in China due to its unique, app-driven cafes. Despite a setback in 2019 when the company was delisted due to an accounting scandal and subsequently filed for bankruptcy in 2021, it has made a robust recovery.

    Global Expansion and Achievements

    Luckin Coffee’s expansion efforts have seen it spread to over 300 cities in China, with most of its outlets located there. The company has also made inroads into international markets, such as Singapore, Malaysia, and the U.S. In February, just over eight years after its inception, Luckin Coffee opened its 30,000th store worldwide, an accomplishment achieved six times faster than Starbucks.

    As of the first quarter of 2026, the company has seen further growth with a total of 33,596 stores globally after adding more than 2,500 outlets during the quarter. Luckin Coffee made its debut in Malaysia last year and has since been growing rapidly. With the addition of the new outlets in Johor, the total number of stores across the country has now exceeded 120.

    Questions & Answers

    What is the significance of the Johor market for Luckin Coffee?
    Johor, being the southernmost state of Malaysia, is seen as a key market that can support Luckin Coffee’s growth through a more localized supply chain, job creation, and wider access to its digital-first coffee retail experience.

    How many outlets does Luckin Coffee have globally?
    As of the first quarter of 2026, Luckin Coffee has 33,596 stores across the globe.

    When did Luckin Coffee enter the Malaysian market and how many outlets does it have in the country?
    Luckin Coffee entered the Malaysian market last year and with the addition of new stores in Johor, it now operates more than 120 outlets in the country.

  • Surging Ahead: Luckin Coffee Topples 35,000-Store Milestone with Rapid Global Expansion

    Surging Ahead: Luckin Coffee Topples 35,000-Store Milestone with Rapid Global Expansion

    Luckin Coffee, a leading coffee chain in China, recently celebrated a significant expansion mark. The brand’s international presence now spans over 35,000 locations across the globe. This development underscores Luckin’s rapid growth both in its home country and abroad, further solidifying its reputation as one of the most extensive coffee and beverage retail chains in terms of store count.

    Impressive Expansion Strategy

    Luckin’s monumental growth is primarily attributed to its aggressive expansion strategy. This strategy is rooted in establishing a dense urban presence, standardizing store layouts, and leveraging technology to facilitate rapid deployment and high-volume service.

    The chain’s growth trajectory has been consistent, with the opening of its 30,000th store earlier this year. This milestone was marked by the debut of a new ‘Origin Flagship’ store in Shenzhen, a significant departure from the brand’s usual small-scale, pickup-focused outlets. The two-story establishment covers an area of approximately 420 square meters.

    Sustained Revenue Growth and Product Demand

    Luckin Coffee has also enjoyed consistent double-digit revenue growth as the brand continues to expand its footprints. As of May 31, the company reported that its non-coffee beverages’ cumulative sales had exceeded RMB 20 billion (equivalent to US$ 2.9 million). The sales report also noted that 22 of its products had sold over 100 million cups each. This shows the strong consumer demand for its extensive beverage offerings beyond coffee.

    Over the years, the company has constructed an integrated supply chain and operational infrastructure designed for large-scale operations. This includes expanded global sourcing from key regions such as Brazil, Ethiopia, and Indonesia, and domestic agricultural areas like Yunnan and Guangxi.

    Questions & Answers

    How many locations does Luckin Coffee have worldwide?
    Luckin Coffee’s global presence now spans over 35,000 locations worldwide.

    What is the foundation of Luckin Coffee’s expansion strategy?
    Luckin Coffee’s expansion strategy is rooted in establishing a dense urban presence, standardizing store layouts, and leveraging technology to facilitate rapid deployment and high-volume service.

    How has Luckin Coffee’s non-coffee beverages performed in terms of sales?
    As of May 31, Luckin Coffee reported its non-coffee beverages’ cumulative sales had surpassed RMB 20 billion (equivalent to US$ 2.9 million). Furthermore, 22 of its products had each sold over 100 million cups.

  • Robust Growth for Luckin Coffee Driven by Strategic Network Expansion and New Store Openings

    Robust Growth for Luckin Coffee Driven by Strategic Network Expansion and New Store Openings

    Luckin Coffee, a reputable coffee chain, has disclosed another quarter of impressive double-digit revenue growth. This growth is mainly attributed to the company’s strategic focus on expanding its reach across various regions.

    Growth Metrics

    In the fourth quarter, which concluded on December 31, the company’s net revenues climbed by 32.9 per cent, reaching RMB12.7 billion (US$1.8 billion). The primary driver of this growth was the net opening of 1834 new stores, of which 1792 are in China, 13 in Singapore, 25 in Malaysia, and four in the United States. By the end of the quarter, the total count of stores stood at 31,048. This includes 20,234 company-operated stores and 10,814 locations in partnership.

    The same-store sales of company-operated outlets grew by 1.2 per cent. This presents a significant improvement from the 3.4 per cent decrease experienced in the same period last year.

    During the quarter, the Gross Merchandise Value (GMV) witnessed a 32.8 per cent rise. Concurrently, the average number of monthly transacting customers surged by 26.5 per cent.

    Financial Performance

    However, the GAAP operating income demonstrated an 18 per cent fall, amounting to RMB821.4 million. Additionally, the net income decreased by 39 per cent to RMB518.2 million.

    For the entire year, the net revenues escalated by 43 per cent, reaching RMB49.2 billion. This increase was accompanied by the opening of 8708 net new stores. The net income demonstrated a 22 per cent rise, standing at RMB3.6 billion.

    Leadership Insights

    Jinyi Guo, the co-founder and CEO of Luckin Coffee, offered insights into the company’s performance. Guo highlighted the strength of the company’s execution focused on scale, which enabled it to achieve robust growth amidst fluctuating market dynamics.

    Guo stated, “We concluded the year on a strong note, achieving the milestone of our 30,000th store and expanding our cumulative transacting customer base to over 450 million.”

    He further noted that the company’s increased scale strengthened its market leadership and boosted its capability to harness the structural tailwinds of China’s coffee market.

    Questions & Answers

    What contributed to Luckin Coffee’s impressive growth in the fourth quarter?
    The company’s significant growth was primarily driven by the net opening of 1834 new stores across various regions.

    How did the company’s financial performance fare in this period?
    Despite the impressive revenue growth, Luckin Coffee saw a decrease in GAAP operating income by 18 per cent and net income by 39 per cent.

    What does the company’s expansion signify?
    The expansion of Luckin Coffee’s scale has fortified its market leadership and equipped it to tap into the structural tailwinds of China’s coffee market effectively.

  • Luckin Coffee Celebrates 30,000th Store Milestone with Launch of Innovative ‘Origin Flagship’ Format in Shenzhen

    Luckin Coffee Celebrates 30,000th Store Milestone with Launch of Innovative ‘Origin Flagship’ Format in Shenzhen

    Luckin Coffee, the global coffee enterprise, recently celebrated the grand opening of its 30,000th outlet. This notable event was marked by the introduction of a new ‘Origin Flagship’ store in Shenzhen.

    New Store Format

    This two-level outlet, significantly larger than Luckin’s traditional pickup-centric small stores, covers an expansive area of about 420 square meters. It carries a special ‘Origin Lab’ menu, presenting customers with a unique selection of single-origin coffees and pour-over options. Coffee aficionados can look forward to tasting beans originating from various regions, including Yunnan, Ethiopia, and Mandheling.

    Store Features

    The new store is equipped with state-of-the-art semi-automatic coffee machines. In addition, it features an exclusive ‘Master Space’, specifically designed to host coffee-related events and facilitate customer interaction.

    In keeping with its commitment to sustainability, Luckin Coffee developed the new store in accordance with Leed Platinum and Zero Carbon Space standards.

    Global Coffee Journey

    Li Hui, Chairman of Luckin Coffee, expressed his company’s dedication to delivering the authentic taste of premium coffee from various renowned regions, including Indonesia, Brazil and Colombia, to every customer. He emphasized that the experience of enjoying a cup of Luckin Coffee is not just about the taste; it’s the beginning of a journey through global coffee flavors. This perspective signifies a critical advancement of Luckin’s corporate vision and mission.

    Currently, the coffee giant operates over 30,000 stores in more than 300 cities in China. It has also successfully expanded its footprint to international markets like Singapore, Malaysia, and the US.

    Questions & Answers

    What is unique about Luckin Coffee’s 30,000th store?
    The 30,000th Luckin Coffee store, located in Shenzhen, introduces a new ‘Origin Flagship’ format. It is a two-story outlet covering 420 square meters, significantly larger than the traditional small, pickup-focused outlets. The store features an ‘Origin Lab’ menu with single-origin coffees and pour-over options.

    What is the ‘Origin Lab’ in the new Luckin Coffee store?
    The ‘Origin Lab’ is a special menu featured in the new store that offers single-origin coffees and pour-over options. Customers can taste beans from various regions, including Yunnan, Ethiopia, and Mandheling.

    Where else does Luckin Coffee operate?
    Luckin Coffee operates more than 30,000 stores in over 300 cities in China and has expanded internationally into markets such as Singapore, Malaysia, and the US.

  • Chinese Coffee Powerhouse Luckin Bids for Premium Leap with Potential Blue Bottle Acquisition

    Chinese Coffee Powerhouse Luckin Bids for Premium Leap with Potential Blue Bottle Acquisition

    Luckin Coffee, a major Chinese coffee company, is planning to upscale its operations. The company is currently exploring potential acquisitions to establish a premium coffee business parallel to its mass-market core.

    Acquisition Ambition

    The company is contemplating a bid for Blue Bottle Coffee, a Nestle-owned entity. If successful, such an acquisition would be a considerable leap for Luckin in their pursuit of the specialty coffee market. Additionally, it would provide an opportunity for them to enhance their brand identity beyond their current value-driven model.

    Blue Bottle Coffee, established in 2002, manages over 100 cafes across the United States and East Asia, with 12 in mainland China and four in Hong Kong. It enjoys a reputation as a reputable name in the specialty coffee sector.

    Earlier this month, it was reported that Nestlé, with the assistance of investment bank Morgan Stanley, was considering selling Blue Bottle Coffee. The premium roasting company was acquired by the Swiss food and beverage group in 2017 in a transaction that valued the business at approximately $700 million.

    Luckin Coffee, along with Beijing-based private equity firm Centurium Capital, is also said to be considering a bid for Lucky Ace International. Lucky Ace International possesses the exclusive master franchise rights for the Japanese specialty coffee brand % Arabica, operating in China and Hong Kong.

    Luckin Coffee’s Growth

    Founded in 2017, Luckin Coffee has rapidly become one of China’s largest coffee chains, boasting over 24,000 locations worldwide.

    Questions & Answers

    What is Luckin Coffee’s current initiative?
    Luckin Coffee is planning to upscale its operations and is considering potential acquisitions to establish a premium coffee business.

    Which companies is Luckin Coffee considering for acquisition?
    Luckin Coffee is contemplating a bid for Blue Bottle Coffee, a Nestle-owned entity. It is also reportedly weighing a bid for Lucky Ace International, which holds the exclusive master franchise rights for the Japanese specialty coffee brand % Arabica in China and Hong Kong.

    What is the significance of these potential acquisitions for Luckin Coffee?
    If successful, these acquisitions would represent a significant leap for Luckin’s push into the specialty coffee segment. Additionally, it would provide an opportunity for them to enhance their brand identity beyond their current value-driven model.

  • Explosive Growth: Luckin Coffee Revenue Skyrockets by 50% as 3,000 New Stores Open Worldwide

    Explosive Growth: Luckin Coffee Revenue Skyrockets by 50% as 3,000 New Stores Open Worldwide

    In the third quarter, China’s Luckin Coffee Inc. experienced a significant revenue boost, supported by an impressive number of new store openings. The chain saw its total net revenue surge by 50.2% year-on-year to RMB15.287 billion (US$2.14 billion) by the end of September. This boost primarily resulted from an increase of 48.1% in gross merchandise value, following a 47% growth in the second quarter.

    Store Expansion and Revenue Boost

    Luckin Coffee Inc. added 3008 new outlets to its chain during the third quarter, including 2979 stores in China, five in Singapore, 21 in Malaysia and three in the United States. This growth brought the total number of stores up to 29,214, comprising 18,882 self-operated stores and 10,332 partnership locations.

    The coffeeshop chain saw same-store sales in self-operated outlets rise by 14.4%, while the number of average monthly transacting customers grew by a substantial 40.6%.

    A Successful Strategy

    Jinyi Guo, Luckin’s co-founder and CEO, credited the company’s positive performance to its strategy of scale expansion. He noted that the expanding store network had improved the chain’s fulfilment capabilities, allowing it to meet growing customer demand successfully. The company also reached a significant milestone, surpassing 100 million average monthly transacting customers for the first time. According to Guo, these achievements further solidified Luckin’s competitive edge and market leadership position.

    While the company’s operating income grew by 12.9% to RMB1.776 billion, there was a slight decrease of 2.7% in net income, which totaled RMB1.278 billion.

    Questions & Answers

    What was the total net revenue of Luckin Coffee Inc. in the third quarter?
    The total net revenue of Luckin Coffee Inc. in the third quarter was RMB15.287 billion (US$2.14 billion).

    How many new stores did Luckin Coffee Inc. open in the third quarter?
    Luckin Coffee Inc. opened 3008 new stores in the third quarter.

    What was the growth rate of average monthly transacting customers for Luckin Coffee Inc.?
    The number of average monthly transacting customers for Luckin Coffee Inc. grew by 40.6%.

  • Starbucks CEO Brian Niccol Lauds Luckin Coffee for Its Impressive Speed of Innovation

    Starbucks CEO Brian Niccol Lauds Luckin Coffee for Its Impressive Speed of Innovation

    Starbucks CEO Brian Niccol has recently extolled the virtues of Chinese rival Luckin Coffee, particularly praising the company’s rapid pace of product innovation. Speaking at the Fast Company Innovation Festival in New York, Niccol remarked, “The one thing that they probably have done a nice job of is just an unbelievable pace of product innovation.” His comments reflect a competitive acknowledgment that emphasizes the importance of adapting and evolving within the fast-paced coffee market. “It sets the tone for, ‘Hey, we cannot be complacent on flavors and drink combinations,’” he added.

    Striking a Balance: Innovative Menus and Smart Discounts

    Luckin Coffee has notably caught the attention of the market with its unconventional beverage offerings, like pineapple cold brew and coconut lattes, accompanied by aggressive discounts ranging from 30% to 50%. This strategy has played a crucial role in its meteoric rise, allowing the company to surpass Starbucks as the leading coffee chain in China, boasting an impressive 26,000 locations against Starbucks’ 8,000.

    A New Era of Order: Luckin’s App-Driven Experience

    An interesting distinction between the two coffee giants lies in Luckin’s operational model, which eschews cashiers in favor of an app-based ordering system. “They’ve done an interesting job on how they’ve turned the app into the only way you can interact with that business. It’s a different approach. I don’t think it’s the right approach for us,” Niccol remarked, highlighting Starbucks’ commitment to creating enriching in-store experiences over purely digital interactions.

    Starbucks’ Strategic Shift in China

    Amid this competitive landscape, Niccol emphasized that Starbucks is experiencing a “nice recovery” in China, achieved in part by reducing prices on select beverages. As part of its growth strategy, Starbucks is actively seeking a local partner to streamline its operations in the region and is looking to open “thousands” of new locations throughout the country. Could there be a Starbucks on every corner in China? Only time will tell.

    Questions & Answers

    What did Brian Niccol praise about Luckin Coffee during the Fast Company Innovation Festival?
    Niccol praised Luckin Coffee’s rapid pace of product innovation and emphasized that Starbucks must not become complacent in its flavor offerings.

    How does Luckin Coffee differentiate itself from Starbucks in terms of customer interaction?
    Luckin Coffee has eliminated cashiers and requires customers to order through its mobile app, unlike Starbucks, which focuses on enhancing in-store experiences.

    What is Starbucks’ strategy to recover its standing in the Chinese market?
    Starbucks is reducing prices on some drinks and is seeking a local partner to manage its operations, with plans to open thousands of new locations across China.

  • Record Q2 Revenue For Luckin Coffee Amid Global Expansion And Increased Customer Engagement

    Record Q2 Revenue For Luckin Coffee Amid Global Expansion And Increased Customer Engagement

    Luckin Coffee reported an unprecedented revenue of $1.72 billion in the second quarter, representing a 47 percent year-on-year increase. This performance coincides with the expansion of the Chinese coffee chain’s global footprint to 26,206 outlets, including more than 2100 new store openings.

    Global Expansion and Growth in Numbers

    Luckin Coffee expanded its network by adding 2085 stores in mainland China and Hong Kong during the second quarter. Additionally, the company opened six new stores in Singapore, 16 in Malaysia, and two in the United States. Of the total number of stores, 16,968 are directly operated by Luckin Coffee, while 9,238 outlets are run in partnership with other entities.

    The company saw a notable surge in customer engagement, with monthly transaction numbers reaching an all-time high of 91.7 million customers during the quarter, marking a 31.6 percent increase compared to the corresponding period last year.

    Financial Performance and Business Prospects

    Revenue generated from directly operated stores shot up by 45.6 percent to $1.27 billion, propelled by a same-store sales growth of 13.4 percent. This indicates a notable improvement from the 8.1 percent growth recorded in the preceding quarter, and a significant rebound from a 20.9 percent decline experienced a year ago.

    Luckin Coffee’s operating profits at store level surged by 42.3 percent to reach $268 million. Revenue from partnership stores also saw a substantial increase, reaching $399.8 million, which translates to a 55 percent year-on-year increase.

    Jinyi Guo, co-founder and CEO of Luckin Coffee, attributed the robust financial performance to the company’s strategic focus on scalability. He emphasized that by capitalizing on the company’s strengths in areas such as operational efficiency, fulfillment, and supply chain, Luckin Coffee has managed to achieve double-digit same-store sales growth in its directly operated stores.

    As for the future, Guo reaffirms that the company remains resolute in its commitment to expanding its market share.

    Questions & Answers

    What was Luckin Coffee’s recorded revenue for the second quarter?
    The company recorded a revenue of $1.72 billion for the second quarter.

    How many new stores did Luckin Coffee open in the second quarter?
    The coffee chain opened more than 2100 new stores globally in the second quarter.

    What was the growth rate in Luckin Coffee’s same-store sales?
    The company reported a same-store sales growth of 13.4% during the quarter.

  • Starbucks and Luckin Coffee Boost Sales in China by Targeting Emerging Smaller Cities

    Starbucks and Luckin Coffee Boost Sales in China by Targeting Emerging Smaller Cities

    The operations of American beverage titan Starbucks in China have recently shown signs of resilience, reporting flat same-store sales for the quarter ending March 30. This performance stands in stark contrast to an 8% decline in the same category for the year ending September 29. Notably, the company’s operating revenue rose by 5% year on year, reaching an impressive US$740 million in the latest quarter.

    Starbucks’ Strategy Shines Through

    Richard Lin, chief consumer analyst at SPDB International, praised Starbucks’ strategy of exchanging lower ticket sizes for increased transaction volumes. According to Lin, this reflects the company’s determination to protect its market share amidst ongoing price competition in China. Over the past year, Starbucks has poured significant resources into expansion, adding 665 new stores to its network, bringing its total to 7,758 outlets and solidifying its status as the largest non-U.S. market for the brand.

    Luckin Coffee’s Bold Moves

    In the race for coffee supremacy, Luckin Coffee, Starbucks’ chief competitor, is making notable strides as well. The company’s operating revenue jumped by a staggering 41% in the first quarter to CNY 8.9 billion (approximately US$1.2 billion), with net profits of CNY 737 million reversing a loss from the same period the previous year. Luckin also expanded aggressively, adding 1,743 stores across China and reaching a total of 24,097 locations. Same-store sales at its company-operated sites increased by 8%, driven by a strategic focus on afternoon tea products designed to attract a broad customer base.

    Analysts from China Merchants Securities have observed that Luckin’s store expansion has surpassed expectations, coupled with rising customer spending. With their stable supply chain and cost advantages, the company is poised to continue capturing market share, despite some short-term increases in coffee bean prices.

    Emerging Markets: The Untapped Goldmine

    The growth narrative doesn’t end with the major cities. A burgeoning trend is evident as data reveals that smaller cities in China are emerging as surprising growth hubs for beverage chains, eclipsing their larger counterparts in growth potential. Over the past year, more than 66,900 coffee shops opened, with remarkable growth in “new first-tier” cities—urban locales that are increasingly asserting their influence on the national stage. Chengdu, for instance, witnessed the launch of nearly 2,000 new coffee shops, while Hangzhou added over 1,700 to its burgeoning coffee scene.

    Interestingly, third-tier cities and smaller towns are now home to almost 45% of China’s coffee shop population. Recent findings from shopping platform Meituan highlighted a staggering 97% increase in coffee orders in these less urbanized areas, accompanied by a 159% rise in coffee shop numbers.

    As Lin pointed out, while the coffee market in higher-tier cities nears saturation, the lower-tier markets represent fertile ground for expansion. He believes that as chains keep prices affordable, they will cultivate a new generation of coffee drinkers who are eager to learn more about their brews.

    With China’s coffee industry boasting a market value of CNY 624 billion in 2024, projections indicate that this figure could skyrocket to CNY 1 trillion this year, presenting a tantalizing vista for both established players and eager newcomers alike.

    Questions & Answers

    What contributed to Starbucks’ stable performance in China?
    Starbucks has adopted a strategy of lowering ticket sizes to boost transaction volume, which has helped maintain its market share amid fierce price competition.

    How has Luckin Coffee fared against Starbucks?
    Luckin Coffee has experienced impressive growth, achieving a 41% increase in operating revenue, and reversing previous losses through aggressive expansion and innovative product offerings.

    What trends are emerging in China’s coffee market?
    Smaller cities are rapidly becoming more significant players in the coffee market, demonstrating higher growth rates in both coffee shop openings and consumer demand than their larger urban counterparts.

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  • Luckin Coffee may launch in the US as early as next year

    Luckin Coffee may launch in the US as early as next year

    Chinese coffee chain Luckin Coffee is exploring potential expansion into the US, with a launch possibly as early as next year.

    During an earnings call, Luckin Chairman and CEO Guo Jinyi emphasised both the promise and challenges of overseas growth.

    “The international market is filled with opportunities, but also presents significant challenges that require patience, time, and continuous investment,” Guo said.

    “We remain both patient and confident in our ability to succeed. We are actively evaluating opportunities in the US and other markets.”

    A report from the Financial Times suggests that Luckin may target cities in the US with sizeable Chinese student populations and tourist presence, such as New York.

    The company also aims to undercut major US coffee brands by offering drinks priced around US$2 to $3, potentially attracting budget-conscious consumers.

    Luckin has already begun overseas expansion in Singapore, opening eight new stores last quarter, taking its total in that market to 45. It also has stores in Malaysia.

    Although initial operations in the country incurred financial losses, Guo said these experiences provided valuable insights into the complexities of managing international ventures.

    The company plans to expand abroad, focusing on store network growth, supply chain management, and brand building.

    “Considering the maturity and competitiveness of the US coffee market, Luckin intends to approach its expansion strategy there with careful consideration and a disciplined execution plan,” Guo added.

    However, the potential US expansion may face reputational challenges.

    Jason Yu, GM at consumer research firm Kantar Worldpanel China, pointed out that Luckin’s past scandal, involving inflated sales data, could impact its brand image in the US.

    In 2020, Luckin admitted to fabricating approximately $310 million in sales in 2019, leading to multiple short-selling attacks and ultimately its delisting from NASDAQ.

    “With fierce competition in the Chinese coffee sector, overseas expansion and the possibility to regain trust from the capital market might be strategic options for Luckin,” Yu said.

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  • Luckin Coffee to launch in Malaysia

    Luckin Coffee to launch in Malaysia

    Chinese chain Luckin Coffee will launch its first location in Malaysia, its second overseas market after Singapore.

    According to local sources, the launch is in collaboration with a Bursa Malaysia-listed company. Luckin Coffee intends to grow its market footprint over the next five years, with stores opening nationwide.

    Luckin Coffee, founded in 2017, is one of the fastest-growing coffee chains, surpassing Starbucks as China’s largest.

    The brand operates more than 18,000 stores in China and 32 locations in Singapore.

    Last year, Luckin Coffee sold more than 5.42 million cups of the alcohol-infused latte it launched with Kweichow Moutai on its first day of business, setting a new sales record for the Chinese coffee company.

    In May, the coffee company stated that its first-quarter revenues increased 41.5 percent yearly to US$869.5 million, owing to increased product sales and additional shop openings. The coffee business opened 2342 net new outlets over the year, including two in Singapore, bringing the total number of stores to 18,590 by the end of March.

  • Luckin Coffee to make Southeast Asia debut in Singapore this month

    Luckin Coffee to make Southeast Asia debut in Singapore this month

    Luckin Coffee, the once-troubled Chinese coffee chain, is slated to open up locations in Singapore as early as this month.

    The development follows the coffee chain’s job postings earlier this year looking for store managers in the city-state. It also aims to fill marketing, project management, and engineering roles.

    The firm also previously told Chinese media that it was conducting preliminary testing in Singapore and reiterated its core focus in its home country.

    Luckin Coffee was once considered China’s answer to Starbucks. However the US Securities and Exchange Commission slapped the company with a US$180 million fine after it was revealed that the firm had misreported financial statements. It went into restructuring and emerged in April last year.

    In its most recent financial report, Luckin Coffee said it logged US$1.9 billion in total net revenue for its 2022 financial year. It has over 8,200 stores in China.

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  • Luckin Coffee’s former executives introduce first store of new coffee brand

    Luckin Coffee’s former executives introduce first store of new coffee brand

    Former executives of Luckin Coffee, Jenny Qian and Charles Lu, have introduced the first location of their new coffee venture Cotti.

    Earlier this year, the coffee chain was reported to be registered with a capital of $100 million with Qian as the legal representative. Cotti’s management team include employees of Lu from Luckin Coffee and Chinese car rental companies UCar and Car Inc, reports Pandaily.

    Cotti Coffee’s first store is located in Fuzhou, serving coffee and Italian desserts in the morning and meals and wine in the evening. The brand has also launched the ordering and food delivery feature on WeChat, offering more than 40 products with prices ranging from $2.48 to $4.41.

    The coffee chain will introduce two store formats – a 50sqm mini store for takeaway and a larger standard footprint offering more of an in-store experience. Following the physical launch, Cotti Coffee will become the sponsor of Argentina’s national football team, serving co-branded drinks in China during next month’s World Cup.

    Lu left Luckin Coffee after the $340 million fabricated sales scandal in 2020. The controversial coffee chain was delisted from Nasdaq soon after that. IiMedia Research estimated the Chinese coffee industry will maintain a growth rate of 27.2 per cent and reach $137 million in 2025.

  • China’s Luckin Plans Store Expansion, Remains Committed to USA Market

    China’s Luckin Plans Store Expansion, Remains Committed to USA Market

    Two years after it was forced to withdraw from the Nasdaq for an accounting fraud, China’s Luckin Coffee believes it has emerged from its “darkest moment”, and said it remains committed to U.S. capital markets as it expands its stores and sales.

    Luckin admitted in 2020 that about $310 million of its sales were fabricated in the previous three quarters, bringing the coffee maker to the brink of collapse after having blazed a trail as a homegrown challenger to U.S. coffee giant Starbucks.

    “That was Luckin’s darkest moment. The company was facing a huge crisis at the time”, David Li, chairman and chief executive of Chinese private equity firm Centurium Capital, told Reuters, referring to the accounting fraud.

    Luckin delisted from Nasdaq following the financial scandal, shocking Wall Street investors. After changes in ownership and top management, as well as paying hundreds of millions of dollars in fines, the company once again is flexing its muscles.

    A turnaround for Luckin would help vindicate the company’s top management and new owners, who have continued to push the chain to expand in China’s highly competitive coffee market.

    Luckin in May reported its first ever quarterly operating profit. On Monday, it reported a 72% jump in net revenue for the June quarter. In comparison, Starbucks said last week its third quarter comparable sales in China fell 44%.

    Centurium, a key early investor of the coffee chain, in January became the firm’s controlling shareholder after leading a consortium to acquire shares that used to be owned by two of Luckin’s founders for more than $400 million.

    Centurium dispatched seven of its professionals to work with Luckin’s management team for months in the aftermath of the fraud and in the following year poured $240 million into the business to finance its restructuring.

    It has also pushed Luckin to rebuild a more transparent and connected database to ensure there are no “data silos”, which Li blamed for the accounting scandal.

    Luckin plans to continue to open new stores, said Luckin’s chief executive Guo Jinyi, even as China’s stringent COVID-19 curbs have forced many catering chains to be more cautious about expansion in the near-term.

    He said Luckin would add more outlets across the country, including in the top-tier cities such as Beijing and Shanghai.

    Luckin, which was founded five years ago, currently has nearly 7,200 shops in China, compared with Starbucks’ 5,761 by early July.

    “We believe the potential of China market remains huge,” Guo said, adding that though Luckin has reached 230 Chinese cities, more than 5,000 of the stores are located in the 50 to 60 major cities.

    Ever after the Nasdaq delisting, Luckin remains tradable via pink sheet, off-exchange trading platform mainly involving penny-stock companies that do not meet the main exchanges’ listing standards.

    On Monday Reinout Hendrik Schakel, who relinquished his chief financial officer role but remains as chief strategy officer, told analysts the company remained committed to the U.S. markets.

    “We don’t have a specific timetable yet,” Guo said of a possible Nasdaq return. “But we will continue to pay attention to and focus on the U.S. capital market … So far, we haven’t considered (re-listing) in other markets.”

    Though Luckin is ahead of Starbucks in store numbers in China, the U.S. coffee chain is still the dominant player with 28.9% of the market in 2021, dropping slightly from previous year’s 31.2%, according to Euromonitor.

    Market share of Luckin rose to 7.8% last year from 6.3% in 2020.

    Asked how Luckin plans to restore investors’ confidence, Guo said: “We can only rely on Luckin’s business performance, rely on issuing (strong) quarterly, annual reports to restore their confidence. It takes time.”

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  • Coffee chains Starbucks, Luckin raise prices in China

    Coffee chains Starbucks, Luckin raise prices in China

    Coffee chains such as Luckin Coffee and Tim Hortons have increased the prices of their beverages in China, with U.S. giant Starbucks blaming “multiple factors” such as higher operating costs.

    The chains, among China’s largest coffee players, raised prices by between 1 yuan and 3 yuan ($0.16 and $0.47), according to menus on mobile apps and media reports, with the topic going viral on Chinese social media on Thursday.

    Although a nation of tea drinkers, China is one of the world’s fastest-growing coffee markets, with nearly 110,000 shops in larger cities by April, consultants Deloitte have said, as young people drive consumption, which lags the United States and Europe, however.

    Starbucks said it had adjusted on Wednesday the prices of some of the items after “comprehensive evaluation and consideration of multiple factors” such as operating costs, in the first increase since 2018.

    A Starbucks Americano costs 30 yuan after the price increase, up from 28 yuan.

    Packaged coffee beans and merchandise such as mugs were not affected, however, the company said in a statement.

    China’s Luckin Coffee raised the price of some beverages by about 3 yuan, taking into account operational costs such as rent, manpower, and raw material, the state-backed Shanghai Securities Journal said.

    Starbucks hiked menu prices in October and January and plans further raises this year, Chief Executive Kevin Johnson has said, in part to offset soaring labor and goods costs, but he did not specify individual products.

    Official data showed China’s coffee market grew at an annual rate of 15% in 2018, versus a global average of 2%.

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