Luckin Coffee is set to open its first stores in Singapore – in the Ngee Ann City shopping centre and Marina Square – this month and is eyeing 10 stores by the end of April.
According to local media reports, the first two stores are already in fit-out behind hoardings saying they will open at the end of March. The brand is also preparing for the third store in Tanjong Pagar’s Guoco Tower, which is set to open next month.
Luckin Coffee will compete directly with chains already established locally, including Starbucks, Flash Coffee and Kopi Kenangan. Statista projects Singapore’s ready-to-drink coffee and tea market will achieve sales of US$1.1 billion this year.
Luckin’s Southeast Asian debut – which comes two years after the US$340 million accounting scandal – was plotted earlier this year when the company started the hiring process in the country across several recruitment platforms, including JobSteet and MyCareersFuture.
The launch marks Luckin Coffee’s second attempt at international expansion after India and the Middle East/North Africa.
Meanwhile, the brand is reported to be in talks with franchise partners in Thailand to expand into that market.
The controversial Chinese coffee chain almost collapsed in 2020 and was delisted from Nasdaq after it was discovered about $337.31 million in sales in 2019 were fabricated. Since then, the company has changed a raft of senior management and restructured its financial affairs in the US.
Luckin Coffee reported a 66.9 per cent year-on-year growth in revenue in FY 2022, generating about $1.9 billion.
“We had more than 2100 net new store openings last year, bringing our total stores in China to more than 8200 and demonstrating our ability to effectively navigate a dynamic and evolving business landscape and maintaining our leading position in the Chinese coffee market,” said Jinyi Guo, chairman and CEO of Luckin Coffee.
