Introduction:Luckin Coffee has recently launched another round of recruitment for new retail partners, with the first phase focusing on 41 cities across nine provinces including Anhui, Henan, and Heilongjiang. This program does not charge traditional franchise fees, but partners are required to cover initial costs such as a security deposit, store renovation, and equipment, totaling approximately 350,000 to 370,000 RMB. This article details the cities open for recruitment, investment specifics, headquarters support, as well as the growth potential of the joint operation model, helping prospective partners comprehensively assess whether it’s a suitable venture.
Luckin Coffee has announced the upcoming relaunch of its new retail partner recruitment program, with the first batch prioritizing nine provinces—Anhui, Henan, Heilongjiang, Jilin, Liaoning, Inner Mongolia, Shandong, Shanxi, and Shaanxi—for a total of 41 cities. These cities already have existing Luckin franchise stores, but their overall distribution is relatively sparse, with most cities having no more than 10 stores, and some like Xinzhou in Shanxi having just one.
This recruitment is not fully open; cities not on the list can still submit application materials, and Luckin will periodically release franchising opportunities for emerging cities based on regional recruitment conditions. The company emphasizes that this program continues its previous dual-track strategy of "company-operated + joint operation," using the joint operation model to further increase market penetration.
For applicants, Luckin offers two cooperation models: those with relevant business experience can apply to operate independent stores; for less experienced potential partners, Luckin headquarters will provide a range of support, including in-store training, planning for holiday marketing activities, guidance on setting up online platforms, and even launching emergency response mechanisms if business performance becomes abnormal, to help stabilize store operations.
In terms of city distribution, these 41 cities are mostly areas where Luckin already has franchise locations but with low store density—for example, Datong in Shanxi currently has 6 stores, Yuncheng only 2, and Yulin in Shaanxi has 3. These regions are considered to have further expansion potential, hence they are the focus of this recruitment.
According to Luckin’s Q3 2022 financial report, its total number of stores nationwide has reached 7,846, spanning more than 230 cities, including 5,373 company-operated stores and 2,473 joint operation stores. Notably, the number of joint operation stores has grown significantly faster than company-operated ones, reflecting the efficiency advantage of this model in expansion.
In terms of revenue performance, joint operation stores contributed 899.1 million RMB to Luckin in Q3 2022, accounting for 23.1% of total net revenue. Compared to 416.1 million RMB in the same period of 2021, this represents a substantial growth of 116.1%. This data shows that the joint operation model has become one of the key pillars of Luckin’s performance growth.
Regarding the specific investment for this new retail partner program, although Luckin does not charge traditional franchise fees, partners are still required to bear several necessary expenses. These include a 50,000 RMB security deposit, 5,000 RMB in design fees, approximately 110,000 to 130,000 RMB for renovation if the store is in shell condition, and around 190,000 RMB for equipment procurement. Overall, the estimated initial investment is roughly between 350,000 and 370,000 RMB.
In addition to the initial investment, partners will also be responsible for ongoing expenses such as staff salaries, rent, utilities, and continuous procurement of raw materials like coffee beans. These operational costs should be factored into the overall investment assessment to ensure the long-term stable operation of the store.
Luckin’s joint operation model was launched in 2019, suspended in 2020 due to the pandemic, and resumed in early 2021. It was temporarily halted again in August 2022 before reopening on December 5 of the same year. The relaunch of this recruitment round shows Luckin’s continued confidence in the effectiveness of the joint operation model for market expansion, along with intentions to further penetrate second-tier and lower-tier city markets.
During a recent earnings call, Luckin Chairman and CEO Guo Jingyi stated that the brand will continue to promote a “competitive” new store expansion strategy, demonstrating confidence in future market layout. For entrepreneurs interested in entering the coffee franchise market, understanding the characteristics of the cities Luckin is opening up, the structure of initial investments, and the headquarters support policies will aid in making more precise investment decisions.
The above content is compiled by CoffeeHunters, a coffee news website.
