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Starbucks big rival in China plans to list in New York

Beijing-based Luckin Coffee said in a Monday night application that it wants to sell shares on the New York Stock Exchange as part of its ambitious expansion plans. Although barely 18 months old, Luckin has opened more than 2,300 outlets throughout China and plans to open another 2,500 by the end of this year. If that happens, the company will bust Starbucks ( SBUX ) as China's largest coffee chain. Luckin has not said how much it plans to raise or when the original procurement will happen, but the company has previously raised hundreds of millions of dollars from major international investors, including Blackrock ( BKCC ]] . After the company's most recent collection in April, it was valued at about $ 2.9 billion. The rapid rise of Luckin to challenge Starbucks shows how Chinese upstarts are increasingly tearing Western brands on one of the world's premier consumer markets. Luckin said Monday it had been encouraged by great growth in coffee consumption in the world's second largest economy to over 8.7 billion cups last year, While both Starbucks and Luckin serve coffee, the similarities are largely there. Unlike Starbucks brand deals, most of Luckin's outlets are small booths in out-of-the-way spots that take orders online for both delivery and pickup. It is more important that Luckin has placed the technology at the center of his business from the start. Its outlets do not accept cash; instead, customers can only pay through the Luckin app, which offers loyalty bonuses. China is…

Beijing-based Luckin Coffee said in a Monday night application that it wants to sell shares on the New York Stock Exchange as part of its ambitious expansion plans.

Although barely 18 months old, Luckin has opened more than 2,300 outlets throughout China and plans to open another 2,500 by the end of this year. If that happens, the company will bust Starbucks ( SBUX ) as China’s largest coffee chain.

Luckin has not said how much it plans to raise or when the original procurement will happen, but the company has previously raised hundreds of millions of dollars from major international investors, including Blackrock ( BKCC ]] . After the company’s most recent collection in April, it was valued at about $ 2.9 billion.

The rapid rise of Luckin to challenge Starbucks shows how Chinese upstarts are increasingly tearing Western brands on one of the world’s premier consumer markets. Luckin said Monday it had been encouraged by great growth in coffee consumption in the world’s second largest economy to over 8.7 billion cups last year,

While both Starbucks and Luckin serve coffee, the similarities are largely there. Unlike Starbucks brand deals, most of Luckin’s outlets are small booths in out-of-the-way spots that take orders online for both delivery and pickup.

 Starbucks CEO says the company plays the long game in China

It is more important that Luckin has placed the technology at the center of his business from the start. Its outlets do not accept cash; instead, customers can only pay through the Luckin app, which offers loyalty bonuses.

China is Starbucks second largest market after the United States. With about 3000 stores across the country, it is still larger than Luckin. Starbucks plans to double that number by the end of 2022.

Luckin is still facing long-term challenges. The company’s filing with the US Securities and Exchange Commission revealed that it lost more than $ 240 million last year. Luckin said it could continue to lose money for the “future future”.


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