Last Updated -

February 16, 2026

LUCKIN COFFEE

Company Profile and Market Insights

Explore the business model, global strategy, and market performance including insights into its position in China.

Key facts

Founded 2017 • HQ Xiamen, China • 29,214 stores (Sep 30, 2025)

29,214

Stores worldwide (Sep 30, 2025)

18,882

Self operated stores (Sep 30, 2025)

10,332

Partnership stores (Sep 30, 2025)

112.3M

Avg monthly transacting customers (Q3 2025)

RMB 15.29 bn

Net revenues (Q3 2025)

17.5%

Store level operating margin (Q3 2025)

About

Luckin Coffee was founded in 2017 and is headquartered in Xiamen, China. It runs an app-first coffee chain built around pick-up and delivery, with smaller store formats designed for speed and high throughput rather than long café stays.

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The company sells coffee, tea-based drinks, and light food, with ordering and payment handled through its mobile app and partner platforms. Luckin frames its mission as “to be part of everyone’s everyday life, starting with coffee,” which fits a model that pushes frequency through convenience and price-led promotions.

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By September 30, 2025, Luckin operated 29,214 stores, including 18,882 self-operated and 10,332 partnership stores, and reported 112.3 million average monthly transacting customers in Q3 2025. Store growth is still concentrated in China, while international expansion remains early-stage, with recent openings in Singapore, Malaysia, and the United States. After the 2020 accounting scandal and Nasdaq delisting, Luckin restructured and returned to aggressive unit expansion.

Business Model and Market Position

Luckin Coffee runs an app-first retail model built for high-frequency orders, fast pickup, and delivery. Many locations use compact formats with limited seating, which lowers rent and staffing needs per store and supports dense urban coverage.

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The company scales through two store types. As of September 30, 2025, Luckin had 29,214 stores, split between 18,882 self-operated stores and 10,332 partnership stores.

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How Luckin makes money

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Self-operated stores
Revenue comes from beverages and food sold in owned stores, plus customer-paid delivery fees. Q3 2025 showed 14.4% same-store sales growth in self-operated stores, supported by higher traffic.
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Partnership stores
Partners run day-to-day operations, while Luckin earns revenue from supplying inputs and services. In Q3 2025, partnership-store revenue included materials, delivery service fees, equipment sales, profit sharing and royalty fees, plus other service fees.
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Key operating levers

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App-driven demand and retention
Ordering through the app enables targeted coupons and repeat-visit mechanics that keep pricing flexible by city and daypart.
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Store density and throughput
A network designed around grab-and-go supports high order volume per square meter and faster expansion into new neighborhoods.
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Scale in customers and openings
In Q3 2025, average monthly transacting customers reached 112.3 million and net revenues rose 50.2% year on year to RMB 15.29 billion, showing how store growth and promotions translate into volume.
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Market position

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Luckin’s position in China is defined by value and convenience at a massive scale. Its store base in China is far larger than Starbucks’ 8,011 China stores at fiscal year-end 2025. This creates a clear competitive split: Luckin wins on speed and price-led frequency, while Starbucks leans on the cafe experience and brand premium.

Performance in China

China is Luckin Coffee’s core market and the source of its scale. In Q3 2025, Luckin added 2,979 net new stores in China (including Hong Kong) and ended the quarter with 29,214 stores worldwide, with most locations in China. Average monthly transacting customers reached 112.3 million, and same-store sales for self-operated stores rose 14.4%, driven by higher traffic.

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Key domestic drivers include:

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Product localization and co-brand marketing:
The Kweichow Moutai latte launch sold more than 5.42 million cups on day one, with single-item sales above RMB 100 million. By end-2023, Luckin reported 45.83 million cups sold and over RMB 900 million in sales for the product line.
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Dense, convenience-led placement:
Stores cluster around offices, campuses, and residential hubs to support fast pick-up and delivery.
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App-led value mechanics:
Frequent coupons and limited-time bundles translate into high order frequency and rapid store payback.
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Competition remains intense as Starbucks adjusts pricing and structure in China while low-price players like Cotti keep pushing vouchers and delivery.

Growth and Future Prospects

Luckin’s growth story is defined by a post-scandal rebuild and a return to scale. After the 2020 accounting fraud and Nasdaq delisting, Luckin restructured and later emerged from bankruptcy proceedings in April 2022. In the latest reported quarter (Q3 2025, ended September 30, 2025), the company reported RMB 15.29 billion in net revenues, GAAP operating income of RMB 1.78 billion, and 112.3 million average monthly transacting customers.

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Key growth drivers include:

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Store expansion with a two-track model
Luckin added 3,008 net new stores in Q3 2025 and ended the quarter with 29,214 stores, split between 18,882 self-operated and 10,332 partnership stores. Partnership-store revenue rose 62.3% year on year to RMB 3.80 billion, which shows how the partner channel is scaling alongside company-run units.
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Product launches that translate into traffic
Limited-time collaborations remain a repeatable playbook. The Kweichow Moutai latte launch sold 5.42 million cups on day one, with single-item sales topping RMB 100 million.
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Early-stage overseas rollout
Q3 2025 openings included stores in Singapore, Malaysia, and the U.S., and Reuters describes Singapore as a common first step for Chinese food and beverage brands expanding abroad.
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Challenges ahead include:
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Margin pressure from discounting and delivery
In Q3 2025, Luckin’s self-operated store-level operating margin was 17.5%, down from 23.5% a year earlier, reflecting higher costs and a competitive pricing environment. Competition from voucher-heavy players like Cotti keeps price expectations low across many cities.
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Input-cost volatility
Coffee price shocks have risen with weather-driven supply constraints, and Reuters reports that bean cost increases tend to pass through to consumers with a lag, which can squeeze margins in the interim.
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Governance and reporting scrutiny
Regulators and audit oversight remain part of the backdrop after the fraud era, including PCAOB action tied to a subsequent-year audit.

This Company Profile was written by Dominik Diemer

Dominik Diemer blends an investor mindset with execution discipline.

He is a SAFe Program Consultant (SPC) and Lean Portfolio Management (LPM) practitioner at DMG MORI Digital, working as a SAFe Release Train Engineer and internal consultant in the Lean-Agile Center of Excellence (LACE).

His focus is prioritization, flow, and dependency management that turns strategy into outcomes. With experience across Bertelsmann and the Founders Foundation, he bridges corporate and startup thinking.

He also invests privately in private equity deals, sharpening his view on business models, value drivers, and go-to-market.

StockCounterParts reflects that lens.

Dominik Diemer

Founder of StockCounterparts.com