Chinese budget coffee brand Lucky Cup, backed by tea giant Mixue, aims to reach 10,000 stores by the end of 2025, up from nearly 7,000 currently. Around 1,500 of these stores are in Henan province, where its headquarters is located. While its earlier expansion focused on lower-tier cities, Lucky Cup will shift its attention to commercial districts in top-tier markets such as the greater Shanghai area and greater Guangzhou area. Founded in 2017 and franchised since 2020, the chain had over 4,000 stores by the end of 2024. If this year’s target is met, it would represent 150% growth. Lucky Cup sells coffee priced between RMB 6–8 (under $1.10), offering profitability even at low prices thanks to strong supply chain support from Mixue. Its low-friction franchise model and marketing of deals such as its RMB 5.9 Americano could give it an edge as it moves into a market dominated by Luckin and KFC’s K-Coffee. [The Paper, in Chinese]
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