I first noticed Lucking Coffee randomly at Dandong Railway Station and then pretty much everywhere else in the whole bloody country, and this go me thinking – WTF is this place?
So, Luckin Coffee is now everywhere in China, and I mean everywhere having surpassed all other coffee chains within the Middle Kingdom years ago. And this includes not just the aforementioned Dandong, but also the big cities and the boonies of China. How though did it get here?
The Rise of Luckin Coffee
Luckin Coffee burst onto the scene in 2017, positioning itself as a modern, app-driven alternative to Starbucks. With sleek stores, aggressive marketing, and an unbeatable pricing strategy (thanks to endless discounts and promotions), it quickly gained traction.
The brand’s strategy was simple: convenience and affordability. Customers could order through the app, pick up their coffee in-store, or have it delivered to their doorsteps. This tech-savvy approach resonated with young, urban Chinese consumers who were eager to embrace the coffee trend without breaking the bank.
By 2019, Luckin Coffee had surpassed Starbucks in terms of the number of stores in China. It seemed unstoppable, riding high on a wave of success and its image as the champion of China’s growing coffee culture.
The Fall: Scandal and Fraud
Luckin Coffee’s rapid ascent came crashing down in 2020 when it was revealed that the company had fabricated over $300 million in sales. This accounting scandal rocked the business world, leading to the delisting of Luckin Coffee from the NASDAQ and casting doubt on the brand’s future.
For a moment, it seemed like Luckin would fade into obscurity, another cautionary tale of corporate greed and mismanagement. But instead of collapsing entirely, the company took a page out of the playbook of resilience.
The Comeback: Everywhere You Look
Fast forward to today, and Luckin Coffee is thriving. Despite its tarnished reputation, the brand managed to rebuild itself, focusing on restructuring and regaining consumer trust. Now, Luckin Coffee is seemingly everywhere in China, from high-end shopping malls to corner kiosks in small towns.
Its success lies in its relentless expansion and low prices. While Starbucks might charge you 40–50 RMB for a latte, Luckin offers a similar drink for half the price—or less, thanks to frequent discounts. For the average Chinese consumer, the affordability of Luckin Coffee is a major draw. And frankly (thankfully) Starbucks is now seen for what it is, not all that cool or good.
The Coffee Itself: Pretty Average
Let’s be honest: Luckin Coffee isn’t exactly a connoisseur’s dream. The coffee is perfectly drinkable, but it’s far from exceptional. The flavors can be inconsistent, and the quality of the beans isn’t on par with premium brands.
However, Luckin’s genius lies in its ability to offer more than just coffee. Seasonal drinks, quirky flavors, and collaborations (like its viral “Moutai Latte” infused with Chinese liquor) keep consumers coming back. The brand understands that for many Chinese, coffee is less about the quality and more about being seen out with your MacBook that you run Windows on…….
Why Do the Chinese Love Luckin Coffee?
The love for Luckin Coffee in China goes beyond the taste of the coffee itself. For many, it’s not about sipping the finest brew but about accessibility, convenience, and the allure of something trendy. Luckin Coffee’s affordability plays a significant role in its appeal. While Starbucks represents a premium, sometimes aspirational experience, Luckin makes coffee a daily indulgence for the masses. Its aggressive pricing strategy, coupled with constant discounts and promotions, ensures that almost anyone can afford to grab a cup.
It is also about good old fashioned nationalism, something heavily promoted by the Chinese Communist Party . This means that many Chinese now want to support companies from their country rather than lining the coffers of an “enemy”, such as Starbucks and the USA. This is quite the about turn from 20 years ago when there was nothing cooler than sitting in one with an Apple sticker on the back of your PC.
And if fairness to China they no longer create “knock-off’s”, but do their own thing their own way, with Luckin Coffee very much being a testament to this.
Which countries have Luckin Coffee?
Luckin Coffee is a true giant in China, with over 10,000 branches scattered across the country. From bustling metropolises like Beijing and Shanghai to smaller cities, its blue-and-white deer logo is impossible to miss. The brand’s dominance at home is unmatched, making it the undisputed king of China’s coffee scene.
Internationally, Luckin has begun testing the waters. It launched in Singapore, where its affordable and convenient model is already gaining traction. And now, the brand has its sights set on Malaysia, with plans to open its first outlets there in 2025. While these expansions are still in their early stages, they signal Luckin’s ambition to take its Chinese success story global. So, is it about to take over the world? Thankfully probably not….
The Verdict
Luckin Coffee may not be the best coffee you’ll ever have, but it’s a fascinating case study in how a brand can dominate a market through smart marketing, affordability, and resilience. For expats and travelers in China, Luckin Coffee is a reliable, if unremarkable, choice when you need a caffeine fix.
Should you visit Luckin Coffee when you are in China? Well if the choice is that, or Starbucks then perhaps, but honestly there is better coffee elsewhere and other places that you can work from in the country.