A post shared by Yang Fei, co-founder of Luckin Coffee, on his WeChat Moments on June 5th. He also shared a photo of himself holding a cup of coffee from the new store located in Zhongshan Road Pedestrian Street in Xiamen.
This marks the opening of Luckin Coffee’s 10,000th store and has been a milestone event for the company since its founding six years ago. Over the past six years, Luckin has witnessed its shining moment with its listing on NASDAQ in 2019 but also suffered from financial fraud allegations and bankruptcy reorganization in April 2020.
The opening of their 10,000th store not only means that Luckin becomes China’s first chain coffee brand to have over ten thousand stores, but also signifies their resurrection after bankruptcy reorganization and major changes within their management team behind this achievement.
The 2022 financial report of Luckin Coffee shows that its revenue scale for the fiscal year has exceeded RMB 10 billion for the first time, with a total net income of RMB 13.3 billion (about USD 1.9 billion), an increase of 66.9% compared to the previous year. The operating profit was RMB 1.1562 billion (USD 150 million), and the overall business turned from loss to profit for the first time, with an operating profit margin of 8.7%.
Despite the impact of the pandemic on various industries’ commercial operations over the past three years, Luckin Coffee’s financial report also revealed that its net income, franchise store numbers and transaction user numbers have all multiplied several times compared to two years ago.
CEO Guo Jinyi stated during a dialogue that in 2022, Luckin Coffee will launch 108 freshly made drinks throughout the year, providing consumers with 900 million cups of coffee. According to data released by Luckin Coffee, the Coconut Latte has sold 300 million cups in two years. In addition, the Coconut Cloud Latte and Iced Siphon Coconut Latte are also popular products among hundreds of new items.
On June 5th, Luckin Coffee launched the “Celebrating Together” event nationwide in all stores, offering a RMB 9.9 store celebration coupon. This continues its activity of offering a single coffee product priced at RMB 9.9 (USD 1.4) every week since April to retain existing customers at low prices and attract new ones.