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. //]]>  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'), '//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.  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. , 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. , 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.  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. , 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. 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