The 570,000sq ft roasting facility in Suzhou City, Jiangsu | Photo credit: Luckin Coffee

Luckin Coffee has bolstered its supply chain to support further outlet growth in China after commencing operations at a new 570,000sq ft roasting facility in Suzhou City, Jiangsu. 

The value-focused small-format operator has invested $120m in the Jiangsu facility, which it says is now the largest coffee roasting plant in China, with an annual roasting capacity of 30,000 tons. Luckin Coffee expects to produce 45,000 tons of coffee annually through its factories in Jiangsu and Pingnan, Fujian. 

In a press release, Luckin Coffee CEO Jinyi Guo said the Jiangsu roasting factory integrates sustainable design measures, intelligent production and quality control and will provide stronger support for the coffee chain’s 16,200-plus stores across China. 

The facility was built in accordance with Three-Star Standards for Green Buildings of China, which applies energy-saving and carbon-reducing technologies in areas such as water recycling, solar photovoltaic power generation and heat recovery. 

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Luckin Coffee opened more than 8,000 net new outlets last year to exceed 16,240 stores across China – many of which are delivery and pick-up only sites. China’s largest coffee chain achieved 87% year-on-year sales growth in the 12 months ending 31 December 2023 to reach RMB 24.9bn ($3.5bn), with profits reaching RMB 3bn ($426m) compared to RMB 1.1bn ($167m) in 2022.