The Chinese technology-led coffee chain has continued to rebound from the pandemic and its previous financial woes, surpassing 7,100 stores in its native market and reporting robust second quarter revenues of $493m
Luckin Coffee has opened 615 outlets in the period to reach 7,195 stores | Photo credit: via Shutterstock
Luckin Coffee has said that it will continue to open more stores to meet increasing demand for coffee in China after exceeding 7,100 outlets in the country in the three months ended 30 June 2022.
The company, which completed bankruptcy proceedings and turned its first-ever quarterly profit earlier this year, opened 615 outlets in the period to reach 7,195 stores, nearly 5,000 of which are company-operated.
Luckin Coffee’s recovery coincides with Starbucks China targeting 6,000 stores in the country by the end of the 2022. The two chains lead China's branded coffee shop market, which World Coffee Portal forecasts will exceed 36,000 stores by 2025.
Luckin Coffee’s revenues in the second quarter were RMB 3.3bn ($493m), 72% higher than the same period of 2021 and a 30% improvement on the first quarter of 2022.
Sales growth in company-operated stores grew 52% to reach RMB 2.3bn ($348m), while revenues in partnership stores increased 178% to total RMB 777.5m ($116m).
“We are proud to announce that Luckin Coffee delivered another quarter of outstanding financial and operational results despite continued pandemic-related headwinds,” said Jinyi Guo, CEO, Luckin Coffee.
The company anticipates that its operations will continue to be negatively affected by pandemic-related market pressures for the foreseeable future. However, Guo said he was confident in Luckin Coffee’s ability to capture growth opportunities in the Chinese market amid expected store closures in the second half of 2022.
Luckin Coffee will publish its first Corporate Governance Report in the fourth quarter of 2022 to share the company’s progress on environmental, social and corporate governance (ESG) initiatives.