Luckin Coffee Surpasses Starbucks in China with Impressive Q2 2023 Growth
Luckin Coffee, a Chinese coffee chain, has reported impressive growth in the second quarter of 2023. It has become the largest branded coffee chain in China, surpassing Starbucks in both store count and revenue. This news comes as the company continues to expand its presence and introduce innovative business models.
Luckin's growth can be attributed to several factors. In Q2 2023, the company opened 1,485 new stores, averaging 16.3 new stores daily. This aggressive expansion led to a total of 10,829 stores by the end of June, outnumbering Starbucks' 6,480 stores in China. Luckin's same-store sales growth rate was 20.8%, with a monthly transaction count of 43.07 million.
Luckin's revenue surged by 88% year-on-year to RMB 6.2 billion, outperforming Starbucks' RMB 5.96 billion in China. The company's operating profit margin reached 18.9%, with self-operated stores achieving a higher margin of 29.1%.
Luckin's success can also be seen in its franchise model. It has approved 247 store applications, indicating a strong interest from potential franchisees. Additionally, Luckin's RMB 9.9 coffee promotion will continue for at least two more years, further driving customer traffic.
Luckin Coffee's impressive growth in the second quarter of 2023 has solidified its position as the leading coffee chain in China. With a strong expansion plan aligning with the rapidly growing coffee market, and innovative strategies such as the unconventional franchise model and promotional offers, Luckin is well-positioned for continued success.
