Luckin Coffee Planning Massive Overseas Expansion

Luckin Coffee, China’s largest coffee brand, is planning a massive expansion in the fourth quarter of this year and the first quarter of 2025 to fuel its next phase of growth amid intense competition in the domestic market. The company runs over 20,000 stores in China, covering both online and offline channels. In Singapore, there are 38 directly run Luckin stores, with the first one opening in April 2023. Luckin views the Singapore market as a testing ground for its overseas operations and business model development. Over the next three to five years, the coffee chain aims to expand its operations in neighboring regions, with Singapore serving as the headquarters for its operations in Southeast Asia.

In the first half of this year, Luckin started discussions with BJ Food, the franchiser of Starbucks in Malaysia, to form a joint venture for entry into the Malaysian market. Chinese coffee and tea brands are expanding overseas, and international brands are focusing on penetrating lower-tier cities in China to find their own growth stories. To win over local consumers abroad, optimizing supply chains, ensuring product supply, and establishing trustworthy brands are essential tasks.

Luckin has built two roasteries since 2019, and announced plans to buy about 120,000 metric tons of coffee beans from Brazil from 2024 to 2025. In the domestic market, Luckin has sought growth by expanding into tea-based beverages, rolling out new products like the light jasmine tea, which sold 11 million cups in its first week.

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