Rocketing since blast-off in October 2017, Luckin Coffee is now set to launch a new independent business in the Chinese market.
The new offering is to be called “Luckin Tea“.
Chinese coffee chain start-up Luckin Coffee has announced that to speed up its market expansion, it will launch its Tea Business as an independent brand.
Last April, the Luckin Tea series was initially launched in Luckin Coffee shops and has experienced strong growth and exceeded company’s expectations.
Jian Liu, Luckin Coffee Chief Operating Officer said in a statement that the tea drink outlets aims to complement the existing coffee shops and will help roll out its footprint nationwide.
Luckin Tea will focus on Tier 2 through Tier 4 cities and will initially open in shopping malls. However, Luckin Coffee stores will focus on Tier 1 and Tier 2 cities and will continue expanding in office locations.
Luckin Coffee so far currently operates 2,963 stores spread across 40 cities in China. It has plans to open more than 4,500 stores by the end of 2019, making it the country’s largest coffee chain. When it launched, Luckin Coffee stated that it aimed to displace Starbucks as the preferred brand of Coffee in China and it focussed on a Digital Ordering and Payment App to help it get mass streamlining of transactions to enable massive growth.