Luckin Coffee is gearing up for a significant global expansion, focusing on Southeast Asia and the United States, according to Latepost, a Caijing Magazine unit. The company has not yet commented on the news.
Currently, Luckin operates over 20,000 stores in China. In Singapore, it runs 38 outlets, with its first opening in April 2023. Unlike in China, Luckin is not using its low-price strategy in Singapore.
The company sees Singapore as a testing ground for its international strategy, with plans to use it as a hub for expanding into neighboring regions over the next three to five years.
Luckin has also started discussions with BJ Food, Starbucks’ franchiser in Malaysia, to enter the Malaysian market through a joint venture.
Jason Yu from Kantar Worldpanel China noted that while Chinese coffee and tea brands are expanding globally, they are focusing on high-value products rather than heavy subsidies. Success abroad will depend on optimizing supply chains and building a trusted brand.
Since 2019, Luckin has built two roasteries and is constructing a third. The company plans to purchase 120,000 metric tons of Brazilian coffee beans from 2024 to 2025.
In China, Luckin has diversified into tea-based drinks, with its light jasmine tea selling 11 million cups in its first week.
Chinese tea brands like Chagee and Heytea are also expanding internationally, with Chagee opening pop-up stores in Paris for the 2024 Olympics and Heytea operating nearly 30 international locations.