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Mixue’s coffee arm sets 10,000-store goal for 2025, eyes higher-tier cities
Chinese budget coffee brand Lucky Cup, backed by Mixue, aims for 10,000 stores by 2025, expanding from nearly 7,000. The focus shifts to higher-tier cities like Shanghai and Guangzhou after previously targeting lower-tier markets. Founded in 2017, the chain can sustain profitability with low prices due to strong supply chains, competing against firms like Luckin and K-Coffee.
Key points
- Lucky Cup aims to expand from nearly 7,000 stores to 10,000 by 2025, representing 150% growth.
- The focus will shift from lower-tier cities to higher-tier markets in Shanghai and Guangzhou.
- Founded in 2017 and began franchising in 2020, Lucky Cup had over 4,000 stores by the end of 2024.
- The brand sells coffee priced between RMB 6-8, leveraging strong supply chains for profitability.
- Competitive pricing strategies, including deals like the RMB 5.9 Americano, help against established competitors.
Why it matters
- As of 2025, coffee and beverage markets have seen a trend towards budget-friendly options and rapid expansion.
- The rise of budget brands like Lucky Cup aligns with consumer preferences for value in the coffee market.
- Historical growth of franchises in China shows an increasing trend of market penetration in both tiered and urban areas.
Lucky Cup's ambitious growth plan reflects broader trends of budget brands expanding in competitive markets, showcasing the potential for success with effective pricing and strategic targeting.