Luckin Coffee – Stock, Scandal, Franchise, Menu & Global Expansion

Luckin Coffee has become one of the most talked-about coffee chains in recent years. Founded in Beijing in 2017, the brand set out to challenge Starbucks with a bold strategy. It used technology, affordability, and speed to win customers across China. The rise was spectacular. Stores opened at record speed, and investors rushed to buy into its vision.

Yet, the story took a sharp turn in 2020 with a major scandal. Fabricated sales figures led to fines, leadership changes, and a collapse in stock value. Many thought the company would not survive. However, Luckin Coffee made a strong comeback. New management rebuilt trust, expanded stores, and restored financial strength.

Today, Luckin Coffee is not only a leader in China but also a growing global player. From Singapore to New York, the brand is bringing its model of app-based ordering and innovative drinks to new markets. The journey of Luckin Coffee shows how risk, technology, and resilience can reshape the coffee business worldwide.

Early Beginnings of Luckin Coffee

Luckin Coffee started in Beijing in 2017. It was founded by Jenny Qian Zhiya and Charles Zhengyao Lu. Their idea was simple. They wanted to challenge Starbucks in China with a tech-driven model. Customers could only order through a mobile app. Drinks were then picked up or delivered. This cut costs and created efficiency.

The company grew quickly. Stores were smaller than Starbucks. They focused on speed instead of long seating. The model appealed to young Chinese consumers. Within two years, Luckin became a household name. By 2019, it had already opened over 1,300 stores. That made it the second-largest coffee chain in China.

Growth and Market Strategy

Luckin Coffee focused on affordability and convenience. Drinks were priced lower than Starbucks. Promotions, coupons, and discounts attracted customers. This helped Luckin expand its reach fast. By 2023, it had surpassed Starbucks in China by store count.

The company relied heavily on data. Every order was made through the app. This allowed Luckin to track customer behavior in real time. Marketing and product launches were designed around these insights. Its strength lay in technology and efficient store operations.

Luckin Coffee Stock and Share Price

Luckin Coffee listed on Nasdaq in May 2019 under the ticker LK. Investors were excited by its rapid growth. The stock price rose quickly after the IPO. At its peak, it reached nearly $50.

But the success was short lived. In 2020, a scandal shocked the market. The company admitted to fabricating sales of over $300 million. The stock collapsed. Nasdaq delisted the shares in June 2020. Shareholders lost billions in value.

Today, Luckin Coffee stock trades in the U.S. over-the-counter market under the ticker LKNCY. The share price has recovered since the scandal. Strong earnings and expansion have rebuilt investor trust.

The Luckin Coffee Scandal

The 2020 scandal became one of the biggest corporate frauds in China. Short seller Muddy Waters released a report alleging fake sales. Soon after, Luckin admitted that executives had inflated numbers. This destroyed its reputation in global markets.

The company paid a $180 million fine to the U.S. Securities and Exchange Commission. Senior executives were removed. New management restructured debt and reformed governance. By 2021, the company had stabilized. It filed for bankruptcy protection but soon emerged stronger.

Despite the scandal, customers in China did not abandon the brand. Stores remained busy. The model of affordable coffee still worked. This helped the company survive and later thrive.

Expansion into Global Markets

Entry into Southeast Asia

Luckin Coffee began its overseas journey in 2023. It opened its first stores in Singapore and Malaysia. Drinks such as Coconut Latte and Orange Americano became instant hits. The brand focused on flavors that appealed to local markets.

Launch in the United Kingdom

In 2025, Luckin Coffee UK Limited was registered. Its operations target both takeaway and licensed café services. The company aims to compete with existing coffee chains in London and other major cities.

Arrival in New York

Luckin Coffee entered the United States in 2025. Stores opened in Manhattan’s Greenwich Village and NoMad. The pricing strategy was aggressive. Drinks cost as little as $2. This was far cheaper than Starbucks. The stores were designed for quick orders, minimal seating, and heavy use of the mobile app.

Luckin Coffee Logo and Branding

Luckin Coffee is recognized by its blue logo with a white deer. The design symbolizes purity, simplicity, and strength. The deer has become a strong brand image across all markets. It creates instant recognition.

The branding is modern and tech-forward. Stores focus on minimal design. Marketing emphasizes young, urban lifestyles. Luckin uses social media and app notifications to connect with customers. This creates loyalty and frequent repeat orders.

Luckin Coffee Menu

The menu combines classic coffee drinks with innovative twists. Espresso-based drinks remain popular. However, specialty items like Coconut Latte, Velvet Latte, and Apple Fizzy Americano attract attention. These unique flavors help the brand stand out.

Luckin also experiments with tea-based drinks. Items like Ceylon Yuan-Yang combine tea and coffee. Seasonal drinks keep the menu fresh. Snacks and bakery items are also available, making Luckin more versatile.

Luckin Coffee Franchise and Costs

Luckin Coffee mostly operates company-owned stores. However, it has begun experimenting with franchise models in select regions. In China, some local partnerships exist. Internationally, the franchise option is still limited.

Exact franchise costs are not widely published. Reports suggest that fees vary depending on location and agreements. Investment includes licensing, store setup, and technology integration. Interest remains strong among potential partners.

Luckin Coffee News and Current Performance

Recent news highlights Luckin Coffee’s strong recovery. By 2025, it had more than 26,000 stores worldwide. Revenue growth has been steady. In Q1 2025, revenue surpassed $1.2 billion. Operating income reached over $100 million.

The company continues to expand in China and abroad. Its rivalry with Starbucks is heating up in Asia and now in the U.S. Analysts view Luckin as a serious global challenger.

Competitive Position and Future Outlook

Luckin Coffee competes directly with Starbucks. While Starbucks dominates in revenue, Luckin wins in scale within China. Its app-only system, low pricing, and fast service attract budget-conscious consumers.

The future will depend on global expansion. Success in markets like the U.S. and UK will define its international reputation. If it can maintain quality and low cost, Luckin could reshape the global coffee industry.

Conclusion

Luckin Coffee is a story of rapid growth, scandal, collapse, and recovery. It started as a challenger in China but now operates globally. The company’s ability to bounce back after fraud shows resilience. Its focus on technology, affordability, and creative products keeps it competitive.

Today, Luckin Coffee is not just a Chinese brand. It is a global force aiming to rival Starbucks and redefine modern coffee culture.