Introduction:Luckin Coffee’s third-quarter revenue in 2024 surpassed 10 billion RMB for the first time, with a total store count reaching 21,343, solidifying its position as the leader in China’s coffee market. This article delves into the highlights of its financial report, including the performance of company-operated and licensed stores, the layout of its roasting supply chain, as well as strategies such as high-frequency product innovation and cross-industry collaborations that have propelled its market expansion. Discover the key drivers behind Luckin’s rapid growth.
On October 30, 2024, Luckin Coffee released its third-quarter financial report, showing a single-quarter total net revenue of 10.181 billion RMB, marking an impressive year-on-year growth rate of 41.4%. This marks the brand’s first milestone of achieving 10-billion-RMB quarterly revenue. Not only was the revenue performance outstanding, but both operating profit and net profit also maintained steady growth. The store count has now expanded to 21,343, ranking first in the Chinese market, including 13,936 company-operated stores and 7,407 licensed stores, both recording double-digit revenue increases. Such remarkable results stem from its mature supply chain system and continuously innovative product strategy.
According to the financial report, Luckin added 1,382 new stores in the third quarter, bringing the total number of stores to 21,343. This scale not only maintains its leading position in the Chinese market but also demonstrates its strong expansion capability. Looking back at its development, Luckin opened its first store in Beijing’s Galaxy SOHO in October 2017, welcomed its 10,000th store in November 2023, and then, in less than a year, marked its entry into the era of 20,000 stores with the opening of the flagship store in Beijing’s Zhongguancun·Zaiwo in July 2024. The leap from 10,000 to 20,000 stores took just 8 months, showcasing astonishing expansion speed.
In terms of store types, company-operated stores made a significant contribution, generating 7.501 billion RMB in revenue in the third quarter, up 45.9% from 5.141 billion RMB in the same period of 2023. The profit of this type of store reached 1.746 billion RMB, with a profit margin of 23.3%, slightly higher than last year’s 23.1%. Licensed store revenue amounted to 2.341 billion RMB, up 27.2% year-on-year. Such performance is backed by a mature, replicable operational model and supply chain support.
Luckin has established two major roasting bases, located in Fujian and Jiangsu, and its fresh fruit processing plant in Baoshan, Yunnan, has entered the trial operation phase, achieving full-chain integration from fresh fruit harvesting to store supply. In addition, the innovative production center in Qingdao commenced construction in the third quarter and is expected to join the two major roasting bases in Pingnan, Fujian, and Kunshan, Jiangsu, to form a powerful roasting network with an annual production capacity of 100,000 tonnes.
Product innovation is another key factor that continuously attracts consumers to Luckin. Even amid fierce competition in the domestic coffee market, Luckin maintains a high-frequency product launch rhythm—102 new products were introduced throughout 2023, while in just the first three quarters of 2024, it launched 22, 30, and 28 new products respectively, demonstrating its agile market responsiveness. Moreover, Luckin adopts an all-day strategy of “coffee in the morning, tea in the afternoon” to meet diverse consumer needs, ensuring its product line covers various scenarios and time periods.
To broaden its brand appeal, Luckin actively collaborates with popular IPs and brands through cross-industry partnerships, successfully reaching different consumer groups. So far this year, it has launched co-branded products with “The Story of Rose,” Pop Mart, Yuanmeng Star, the game “Black Myth: Wukong,” and Butterbear, thereby attracting the attention of younger and trend-conscious consumers and further solidifying its market position.
Overall, Luckin Coffee has successfully achieved the breakthrough of 10-billion-RMB quarterly revenue by leveraging its extensive store network, mature supply chain system, frequent and innovative product strategies, as well as flexible operational models. Following the release of the financial report, its stock performance was strong, closing at 26.5 USD, up over 10%, reflecting the market’s continued optimism about its future development.
The above content is compiled by CoffeeHunters, a coffee news website.
