Chinese coffee chain Luckin Coffee has announced the opening of a new outlet in Beijing, officially bringing its total number of stores to 20,000.
The company launched the new store following the opening of its 10,000th outlet last year, and the inauguration of its 570,000 square foot roasting facility in Jiangsu in April 2024.
“Luckin Coffee’s growth and development have been fuelled by the support of more than 230 million customers and the dedication of 110,000 Luckin employees. Looking ahead, we will continue to strive towards becoming an outstanding, world-class coffee brand that lasts for centuries,” says Chairman and CEO of Luckin Coffee Guo Jiny.
According to the brand, its large store footprint is mainly comprised of delivery and pick-up-only locations, which has enabled it to increase its market share in China. This contributes to the opening of 1442 stores since its first quarter ending March 2024.
Alongside its domestic store network, Luckin Coffee also operates 32 stores in Singapore and plans to sign a master franchise agreement to further its expansion to Malaysia.
According to the company, it has also signed a Memorandum of Understanding (MoU) with the Brazilian Trade and Investment Promotion Agency to further boost its supply chain. This means the brand can purchase up to 120,000 tons of coffee from the South American country over the next two years in a deal worth approximately $500 million.
Despite a 41 per cent year-on-year sales growth in the first quarter of 2024, Luckin Coffee reported total revenues in the period dipped below 7.2 billion RMB and 7 billion RMB achieved in the previous two quarters. According to the brand, the fall in sales also contributed to a 65.1million RMB operating loss.
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