According to reports, Indonesia, Singapore, and Thailand have been mentioned as prospective markets for China’s Luckin Coffee as it is considering expanding internationally this year.
Jobs in Southeast Asia website Beginning in January 2023, Luckin Coffee posted job listings for store managers on JobStreet, and DealStreetAsia, a Singaporean news outlet, reported negotiations between Luckin Coffee and potential franchise partners in Thailand the previous year.
Luckin Coffee would be making its second try at breaking into foreign markets with as-yet-unknown expansion intentions.
The coffee chain and Kuwaiti franchise company, Americana Group, inked a memorandum of understanding in July 2019 to create a joint venture to expand the brand throughout the Middle East and India.
Following the discovery of potentially $340 million in false sales in April 2020, Luckin Coffee was rocked by a financial scandal the following year. As a result, in May 2020, the firm changed its senior management team, and in June of that same year, it voluntarily delisted from the Nasdaq.
Following Luckin’s increasing focus on the Chinese market in the fourth quarter of 2022, there have been reports of worldwide retail expansion.
In its third quarter, Luckin Coffee reported sales growth of 66% year over year, reaching RMB 3.9 billion ($547.5 million). As a result, the company announced ambitions to expand the number of franchised locations it runs throughout China.
Currently, franchises manage 32% of the 7,846 locations of the technology-driven coffee giant.
Additionally, Luckin Coffee started building a brand-new, $120 million fully automated coffee bean roasting manufacturing facility in December 2022.
The 30,000 tonnes of coffee beans can be processed annually at the 53,000 sq m complex, which is scheduled to start operations in 2024.
CEO Guo Jinyi stated during the groundbreaking ceremony that the facility showed Luckin Coffee’s continuous commitment to the Chinese coffee market.
A chain of coffee shops in China called Luckin Coffee Inc. serves coffee. In 2017, it was established in Beijing. It oversaw 5,671 kiosks as of September 2021. The business runs restaurants, stores, and booths that provide food, coffee, and tea. Customers who order and pay for drinks online must download an app.
At Truoosh, we’re here to help you navigate this overwhelming world of stuff. All of our market picks are independently selected and curated by the editorial team. All product details reflect the price and availability at the time of publication. If you buy something we link to on our site, Truoosh may earn commission.
