Luckin Coffee moves into the vending-machines market
China’s largest coffee chain Luckin Coffee is moving into the vending machines market.
“It allows us to get closer to consumers and we are not restricted by the license approvals,” said Luckin founder and CEO Qian Zhiya of the new strategy. Luckin’s machines will serve freshly brewed drinks as well as food.
The firm also launched a share placement and a convertible bond worth a combined US$821 million last week, according to a Reuters report.
Proceeds will be used to open more stores and to invest further in sales and marketing.
Luckin recently overtook Starbucks in terms of the number of outlets within the territory, operating more than 4500 stores. The firm focuses primarily on the coffee delivery and pickup business, and so stores are typically smaller in size than Starbucks locations and some are without seating.