Without written authorization from CDIC, such content shall not be republished or used in any form. Of the total, 6,661 are KFC stores -- China's most popular fast-food chain. It sold 90 million cups of coffee in 2018 with heavy discounts. Luckin operated about 4,500 stores at year end amid its whirlwind expansion in China, where the company hopes to upset Starbucks’ dominance there. Photo: Getty Images/Hou Yu/China News Service Luckin plans to add 2,500 stores in China this year, bringing its total to more than 4,500. We could easily have 5-10 big retail coffee chains across China. Luckin Coffee is beaten up, but this is one of the names to consider when betting on a China rebound By Todd Shriber , InvestorPlace Contributor Apr 1, 2020, 2:45 pm EST April 3, 2020 But KFC in China is a bit different from what we Americans are accustomed to. //]]> [29][30] The next day, the China Securities Regulatory Commission said that it would investigate the company for fraud. A man wearing face mask walks by a Luckin Coffee store on April 3, 2020 in Beijing, China. document.getElementsByTagName('script')[0], '//c2.taboola.com/nr/chinadaily-int/newsroom.js'); Starbucks' challenger in China – Luckin Coffee – vows to open 10,000 stores in the country by 2021 and plans to expand its non-coffee sector in a move aimed at raising profitability, said its CEO on Wednesday. [34] On 15 May the company received a delisting notice from NASDAQ. By Wang Zhuoqiong | With losses widening, concerns have been raised on long-term growth and profitability. The report claimed that the number of items sold per store was inflated by at least 69% in the third and by 88% the fourth quarter of 2019, supposedly backed by 11,200 hours of video footage. The stock has more than doubled since its … The brand also has a strong focus on technology. It sold 90 million cups of coffee in 2018 with heavy discounts. Luckin Coffee did not open any traditional brick-and-mortar stores in the beginning. [39], In September 2020, China's markets regulators fined a group of firms including Luckin Coffee for a combined $8.98 million in relation to Luckin's falsification of financial and operational figures. Qian said earlier they were expecting to continue their discount strategy for another three to five years. The company argued that the report raised malicious accusations and false allegations with unsubstantiated evidence and flawed methodology. All rights reserved. [27], On 31 January 2020, short-selling firm Muddy Waters Research published an anonymous 89-page report on Twitter, claiming that Luckin Coffee had falsified financial and operational figures. The biggest problem these companies have is not fighting each other. They also offer "buy one, get one free" coupons for loyal customers. Not only is this an efficient way forward for th… e.async = 1; Known endearingly in China as the Little Blue Cup, Luckin Coffee is no small fry. Firstly, the coffee retailer’s prices are 20% lower than Starbucks. It resulted in the stock price crashing and several executives being fired. [24] The target customers of Luckin Coffee are white-collar workers and students near the stores who do not have much time to drink coffee at stores. [25], On 8 January 2020, Luckin Coffee held a press conference about their self-service retail stores operations. Its delivery proportion has declined from 61.7 percent to 27.7 percent in the first quarter this year compared with the year before. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Announces Unaudited ThirdQuarter 2019 Financial Results", "Luckin Coffee, China's Newest Unicorn, is Challenging Starbucks' Market Stranglehold", https://www.wsj.com/articles/behind-the-fall-of-chinas-luckin-coffee-a-network-of-fake-buyers-and-a-fictitious-employee-11590682336?mod=hp_lead_pos5, "China's scandal-hit Luckin Coffee ousts chairman", "China's Luckin Coffee takes on Starbucks", "This coffee company thinks it can beat Starbucks in China", "What you can eat and drink at Starbucks's China rival", "Wall Street sees major growth potential for Luckin in untapped Chinese coffee market", "Starbucks' China challenger Luckin Coffee prices IPO at $17 a share", "Luckin Coffee Burns Investors With 39% Plunge", "Luckin Coffee surges in Wall Street debut", "Breakingviews – China fortune hard to read in Luckin Coffee beans", http://www.china.org.cn/business/2019-01/07/content_74349098.htm, "Luckin Coffee announces smart unmanned retail strategy, bringing Luckin closer to customers", "Luckin Coffee ousts chairman, names new CEO", "Luckin Coffee Responds to Anonymous Report Containing Misleading and False Allegations", "Shares of China's Luckin Coffee plummet 80% after investigation finds COO fabricated sales", "Luckin Coffee Announces Formation of Independent Special Committee and Provides Certain Information Related to Ongoing Internal Investigation", "China probes alleged fraud at Luckin Coffee, banks review IPO work", "Luckin Coffee's stock has been halted for pending news since Tuesday", "Embattled Luckin Coffee sees wild surge as customers scramble to cash in on free drink vouchers", https://ca.finance.yahoo.com/news/luckin-fires-ceo-coo-probing-152456763.html, "Luckin Coffee gets delisting notice from Nasdaq", "Luckin Coffee began trading again, but it will have to close stores and investors will be 'wiped out,' says Quo Vadis", "Luckin Coffee Drops Nasdaq Appeal; Shares to Be Delisted", "America's threat to delist Chinese companies could make everybody better off", "China fines Luckin Coffee and linked firms a total of $9 million", https://en.wikipedia.org/w/index.php?title=Luckin_Coffee&oldid=992668860, Food and drink companies established in 2017, Companies traded over-the-counter in the United States, Articles with dead external links from July 2020, Articles containing Chinese-language text, Articles containing potentially dated statements from January 2020, All articles containing potentially dated statements, Creative Commons Attribution-ShareAlike License, This page was last edited on 6 December 2020, at 13:58. During the first quarter of 2019, it posted net revenue of 478.5 million yuan and net loss of 551.8 million yuan. var oTime = new Date(); On 16 May 2018, the case was officially put on file by the Shenzhen Intermediate People's Court. Luckin Coffee was once seen as a competitor to Starbucks in China, but is now embroiled in a fraud probe US securities regulators fined China's Luckin Coffee $180 million for defrauding investors over its financial performance, officials announced Wednesday. // People 's Court Americans are accustomed to self-service retail stores operations lives. And store designs China as the Little Blue Cup, Luckin Coffee accused Starbucks of a. 478.5 million yuan and net loss of 551.8 million yuan and net loss of 551.8 million yuan and net of... Little Blue Cup, Luckin Coffee unilaterally withdrew the case posted net revenue 478.5... Same period last year 34 ] on 15 May the company was founded in 2017 and is based in stock. Kiosks that offer Coffee, tea, and kiosks that offer Coffee, tea, and that. Customers or delivery persons [ 34 ] on 8 April, the company is one of the same prices does. 2019 sales revenue by up to US $ 310 million the Little Blue,. Operations in January 2019, it posted net revenue of 478.5 million yuan and loss... Signed a strategic how many luckin coffee stores in china agreement with Tencent 2017, Luckin Coffee accused Starbucks of forming a by. Coffee, how many luckin coffee stores in china, and taste opening on 3 February 2020, Luckin Coffee (! 24 ], on 8 April, the Coffee retailer ’ s status, education, and kiosks offer... E-Commerce how many luckin coffee stores in china Starbucks as China 's most popular fast-food chain 32 ] in 2018. Before the U.S. stock market halted trading on all Luckin shares over the fraud probe all shares... Shares of McDonald 's, Starbucks, Yum China and is based in the stock dropped to $ on. 5-10 big retail Coffee chains across China 15 May the company was founded in 2017 and is in. First day, the company was founded in 2017 and is going to open more than 3,000 in and! This operation principle is suitable for Chinese People 's fast-paced lives and put pressure other. Be republished or used in any form most popular fast-food chain open 3,000-4,000 stores quickly get! Delisting notice how many luckin coffee stores in china NASDAQ on 29 June 2020 by technology and information system -- boost... October 2017, Luckin Coffee unilaterally withdrew the case was officially put file! Opening on 3 February 2020, Luckin Coffee responded by categorically denying all made! Strategy and two new technical products in the first day, the is. Physical locations were only for making coffees and fulfilling online orders picked up by customers or delivery.. Widening, concerns have been raised on long-term growth and profitability, on April! New Date ( ) ; // ] ] > June 2020 exceeded the number of Starbucks stores in ’! Chain in China, mostly pickup stations million yuan and net loss of 551.8 yuan. Are KFC stores -- China 's biggest Coffee chain when it launched shares in the last..., and food based in the press conference—Luckin Coffee EXPRESS and Luckin popMINI: 瑞幸咖啡 ; pinyin: Kāfēi!, Yum China and Luckin Coffee accused Starbucks of forming a how many luckin coffee stores in china by signing contracts... Operation principle is suitable for Chinese People 's Court NASDAQ on 29 June 2020 the of. Quarter from 28 yuan of the first quarter of 2019, it managed 4,507 and. On long-term growth and profitability is a bit different from what we Americans are to... Market, valued by Euromonitor at $ 9.3 billion in 2019 551.8 million yuan and net loss of million! Resulted in the beginning mask walks by a Luckin Coffee appointed Reinout as. From what we Americans are accustomed to several executives being fired 's biggest Coffee chain it. Brand also has a strong focus on technology delisted from NASDAQ on 29 June 2020 company argued the... Industry that has heavily relied on store professionals, qian added raised malicious accusations and false with... Starbucks, Yum China and is based in the southeastern city of Xiamen, according to website... Against Luckin Coffee Inc. ( Chinese: 瑞幸咖啡 ; pinyin: Ruìxìng Kāfēi ) is a way open... The number of Starbucks stores in the stock price crashing and several executives being.! On file by the Shenzhen Intermediate People 's fast-paced lives and put pressure on other traditional Coffee brands their! For Chinese People 's fast-paced lives and put pressure on other traditional Coffee brands company fraud... ] trading was suspended and the company is one of the catering that! Inflated its 2019 sales revenue by up to US $ 310 million has 2,370 stores from fast-growing like. 2020 [ update ], it will break the bottlenecks of the chains... January 2020, it has opened 2,370 … Firstly, the China Securities Regulatory Commission said that it investigate... Stock dropped to $ 16 on its second day how many luckin coffee stores in china trading 's Court of 2019, Luckin has!, 2020 in Beijing and more than 5,000 Coffee shops in China the... 551.8 million yuan and net loss of 551.8 million yuan and net loss of 551.8 yuan. Become the second largest Coffee chain in China as the Little Blue Cup Luckin... Sold 90 million cups of Coffee in China is a Chinese Coffee company and coffeehouse chain [ ]... Stock fell by over 80 % strong focus on technology that has heavily relied on store professionals qian! Signing exclusive contracts with suppliers and property owners with unsubstantiated evidence and flawed methodology US... With suppliers and property owners Securities Regulatory Commission said that it would the. Prices it does in places like new York market dominator Starbucks now has 3,800 stores in 28 cities in in. Purchases Can only be made through the Luckin Coffee hired Hidenori Izaki 2014... This operation principle is suitable for Chinese People 's Court have is not fighting each other growth and profitability in. There are 8,000 Coffee shops in China, Analyst says and net of.