Analysis: Is Luckin Coffee’s growth strategy sustainable?

The Beijing-based coffee giant is closing in on 40,000 stores after another quarter of surging outlet growth in China – but like-for-like sales offer a cause for concern

Luckin Coffee is firmly on track to become the world’s largest coffee chain in 2027 after a buoyant third quarter – but how sustainable is its pursuit of rapid growth?

With 38,909 stores, Beijing-based Luckin is currently the second-largest branded coffee chain globally by outlets after Starbucks, which has 41,607 stores across 90 markets.

However, the gap between the two has drastically narrowed, with Luckin opening thousands of stores each quarter, while Starbucks has slowed expansion or contracted in key markets.