From accounting scandal to global challenger: This week, Luckin Coffee opened its 30,000th location in Shenzhen – a premium flagship that directly targets Starbucks' high-priced Reserve concepts.
The Strategic Shift
Until now, Luckin focused on budget coffee: Americano or latte for the equivalent of $1–2, ordered via app, picked up at a kiosk.
The new flagship breaks with this model:
- Pour-over and cold brew at higher prices
- Beans from Brazil, Ethiopia, and China's Yunnan Province
- Specialty drinks like "Tiramisu Latte" with pastry on top
- Wait times of 1–3 hours since the soft launch on January 20
Good to know: Luckin's Comeback Story
In 2020, Luckin had to delist from Nasdaq after an accounting scandal – much of its 2019 revenue was fabricated. The company kept its name and logo, continued operating, and rebuilt its business.
The stock moved to over-the-counter trading (OTC) and posted a rally of over 430%.
The success is based on three pillars:
- App-first: Customers order and pay exclusively via the app – creating a loyal user pool
- Collaborations: From premium spirit Moutai to Minions to gaming hit "Black Myth: Wukong"
- Aggressive expansion: 10 stores in New York since last summer, 68 in Singapore, 45 in Malaysia
CEO Guo Jinyi has hinted at a US relisting – without a concrete date.
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